The Access to Business Funding Bill is expected to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This crucial legislation aims to tackle significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, problems that have been acknowledged both domestically and internationally.
Kamikamica highlighted the essential need for improved access to finance, especially in rural areas where cooperatives, particularly among the indigenous Taukei population, have demonstrated their effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, showcasing the importance of cooperative models in supporting sustainable economic and social development.
To further bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives by proposing amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund—which has already gained parliamentary approval—aims to significantly enhance the operational capabilities of cooperatives, reflecting the government’s commitment to strengthen this vital sector.
Public consultations conducted earlier in the year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. This has resulted in a notable funding gap. The Access to Business Funding Bill proposes various innovative solutions to bridge this gap, including a small-offer regime that allows private companies to raise equity capital more effortlessly and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is increasing optimism that it will create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative holds the potential to significantly benefit the broader community and enhance the overall resilience of Fiji’s economy. The proactive approach represented by this legislation is a hopeful sign for the future of MSMEs and cooperatives, paving the way for a robust entrepreneurial ecosystem capable of sustaining long-term growth and development.
This effort underscores the government’s commitment to reforming access to finance, a crucial aspect for solving the financial challenges faced by MSMEs, and could catalyze transformative economic opportunities across the nation.
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