The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, addressing an issue recognized as crucial both locally and globally.
Kamikamica emphasized the importance of access to finance for economic empowerment, especially in rural areas where cooperatives play a vital role, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the significant contributions cooperative models can make toward sustainable economic development and social progress.
To enhance support for these sectors, the Fijian government plans to modernize the legal framework governing cooperatives through proposed amendments to the Co-operatives Act later this year. Additionally, the recently established Cooperative Development Fund is expected to bolster the operational capacity of cooperatives, further underscoring the government’s commitment to fostering economic resilience within this sector.
Recent public consultations revealed that many SMEs struggle to access traditional financing due to a lack of established revenue streams, credit histories, or adequate collateral, resulting in a substantial funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing alternative financing options, such as a small-offer regime for raising equity capital, alongside investment-geared crowdfunding avenues, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As discussions surrounding the bill continue, there is optimism that it will create a more inclusive financial environment, empowering entrepreneurs and stimulating local economic growth. These measures aim not only to address immediate financial barriers but also to foster a vibrant entrepreneurial ecosystem that benefits the broader community, enhancing the overall resilience of Fiji’s economy.
This initiative represents a hopeful commitment by the Fijian government to support MSMEs and cooperatives, paving the way for sustainable economic growth and a brighter future.
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