The Access to Business Funding Bill is anticipated to gain approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation aims to tackle the financial challenges facing micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which have garnered attention both locally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives are notably effective, especially among the indigenous Taukei community. This initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, acknowledging the integral role of cooperative models in promoting sustainable economic and social development.
The Fijian government intends to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to this essential sector of the economy.
Public consultations earlier this year highlighted that many SMEs struggle to access traditional financing options due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill is designed to address these challenges by introducing progressive financing solutions. This includes a small-offer regime that will facilitate the easier raising of equity capital for private companies, as well as provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to have a positive impact on the wider community and strengthen the resilience of Fiji’s economy. The government’s proactive measures, as illustrated by this legislation, represent a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development for the nation.
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