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 session in Parliament. This significant legislation aims to address the financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—challenges recognized internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives, especially amongst the indigenous Taukei communities, have proven to be effective. The bill aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underlining the vital role cooperative models can play in fostering sustainable economic development and social progress.
In addition to the bill, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. A newly approved Cooperative Development Fund is also being introduced to enhance the operational capabilities of cooperatives, signifying the government’s commitment to this crucial sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, and collateral, which contribute to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, alongside provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. This initiative promises to empower entrepreneurs and stimulate local economic growth, ultimately benefiting the broader community and reinforcing the resilience of Fiji’s economy. The proactive measures encapsulated in this legislation reflect a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, this legislative initiative marks a positive step toward enhancing financial access for MSMEs and cooperatives, which can foster innovation, boost employment, and sustain long-term economic development in Fiji.
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