Fiji’s Business Funding Bill: A Game Changer for MSMEs?

The Access to Business Funding Bill is set to be approved next week, as revealed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This pivotal legislation is aimed at addressing the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji. Kamikamica highlighted that access to finance is a critical challenge for these sectors, particularly in rural areas where the cooperative model has shown remarkable effectiveness, especially among the indigenous Taukei communities. This legislative effort is timely, coinciding with the United Nations’ designation of 2025 as the International Year of Cooperatives, which underscores the role of cooperatives in fostering sustainable economic growth and social development.

In addition to the Access to Business Funding Bill, the Fijian government plans to modernize the legal framework governing cooperatives by amending the Co-operatives Act this year. The establishment of the Cooperative Development Fund, which has already received parliamentary approval, aims to significantly strengthen the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector.

Public consultations conducted in early 2025 identified that many SMEs encounter significant barriers when trying to access traditional financing routes. Factors such as inadequate revenue histories, credit ratings, and collateral have created a substantial financing gap. The Access to Business Funding Bill seeks to bridge this gap by introducing alternative financing solutions, including a small-offer regime that enables private companies to raise equity capital more easily, along with provisions for investment-driven options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).

As the bill nears approval, there is growing optimism about its potential to foster a more inclusive financial landscape within Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is expected to provide substantial benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures articulated in this legislation reflect a hopeful commitment from the government to create a dynamic entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.