The Access to Business Funding Bill is set to receive approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation aims to address the substantial financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, concerns recognized both locally and globally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, affirming the role cooperative models can play in advancing sustainable development and social progress.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework that governs cooperatives, with anticipated amendments to the Co-operatives Act expected later this year. Additionally, the newly established Cooperative Development Fund, which has recently received parliamentary approval, aims to significantly improve the operational capabilities of cooperatives, reinforcing the government’s commitment to supporting this vital sector.
Earlier public consultations conducted this year revealed that many SMEs encounter difficulties accessing traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, which contribute to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing alternative financing solutions, including a small-offer regime that would facilitate easier equity capital raising for private companies, along with provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, optimism is on the rise that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to yield significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The Fijian government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem that supports sustained growth and development across the nation.
This legislation is not just a financial uplift but also a significant step towards fostering an entrepreneurial spirit in Fiji, encouraging innovative solutions, and addressing the needs of underserved communities.
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