The Access to Business Funding Bill is set to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation is aimed at addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have garnered international attention.
Kamikamica highlighted the pressing need for improved access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative is aligned with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models to foster sustainable development and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, anticipating amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund, which has received parliamentary approval, aims to bolster the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed that many SMEs face significant barriers when accessing traditional financing options due to insufficient revenue histories, credit ratings, or collateral. As a result, a substantial funding gap has emerged. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative solutions, including a small-offer regime to facilitate easier equity capital raising, as well as investment-driven crowdfunding 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 create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislative initiative could provide significant benefits for the broader community, enhancing the overall resilience of Fiji’s economy. The government’s proactive approach reflects a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
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