The Access to Business Funding Bill is on track for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This important legislation aims to address the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged both locally and globally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural regions where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei communities. The initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, which underscores the vital role that cooperative models can play in promoting sustainable development and social progress.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act expected this year. Additionally, a Cooperative Development Fund, recently approved by Parliament, aims to strengthen the operational capabilities of cooperatives, further reinforcing the government’s commitment to this essential sector.
Public consultations held earlier this year revealed that many SMEs struggle with access to traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, leading 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 facilitates easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver substantial benefits to the wider community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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