The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a parliamentary session. This essential legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues recognized both locally and internationally.
Kamikamica emphasized the critical need for enhanced access to finance, especially in rural areas where cooperatives, particularly among indigenous Taukei communities, have demonstrated significant effectiveness. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underscoring the potential of cooperative models in fostering sustainable economic advancement and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the existing legal framework governing cooperatives. Amendments to the Co-operatives Act are expected this year, alongside the recent establishment of a Cooperative Development Fund approved by Parliament, aimed at enhancing the operational capabilities of cooperatives.
Public consultations held earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, and collateral, leading to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions including a small-offer regime to facilitate easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward approval, there is a growing sense of optimism regarding its ability to foster a more inclusive financial environment in Fiji. This initiative promises to empower entrepreneurs and stimulate local economic growth, potentially delivering substantial benefits to the wider community while enhancing the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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