The Access to Business Funding Bill is set to be approved by next week, as disclosed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation aims to tackle the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged on both national and international platforms.
Kamikamica highlighted the critical need for better access to finance, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei communities. This initiative corresponds with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the role of cooperative models in driving sustainable development and social advancement.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act later this year. Additionally, the Cooperative Development Fund has recently received parliamentary approval, aimed at enhancing the operational capabilities of cooperatives and reinforcing the government’s commitment to this vital economic sector.
Public consultations conducted earlier this year revealed that many SMEs struggle with accessing traditional financing options due to barriers such as insufficient revenue histories, credit ratings, and collateral. This has led to a considerable funding gap, which the Access to Business Funding Bill aims to address through innovative financing solutions. These include a small-offer regime that facilitates equity capital raising for private companies and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, there is growing optimism about its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant benefits for the wider community and enhance the resilience of Fiji’s economy. The proactive measures outlined 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 not only addresses immediate financial barriers but also sets a foundation for greater economic empowerment and sustainability within the Fijian MSME sector.
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