The Access to Business Funding Bill is anticipated to receive approval by next week, as stated by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent session in Parliament. This important legislation aims to tackle the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives encounter in Fiji, a situation recognized both locally and globally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives play a crucial role, especially among the indigenous Taukei communities. This initiative is aligned with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the significance of cooperative models in promoting sustainable economic growth and social advancement.
To enhance the operational capacity of cooperatives, the Fijian government plans to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund aims to support this vital sector by providing resources to strengthen cooperative functions.
Public consultations conducted earlier this year revealed that accessing traditional financing remains a significant hurdle for many SMEs due to limitations such as inadequate credit histories, revenue streams, and collateral, resulting in a considerable funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including a small-offer regime to facilitate easier equity capital raising, as well as provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is a growing sense of optimism about its potential to create a more inclusive financial landscape in Fiji. This initiative promises to empower entrepreneurs and stimulate local economic growth, ultimately enhancing community well-being and improving the overall resilience of Fiji’s economy. The government’s proactive approach reflects a hopeful commitment to nurturing an entrepreneurial ecosystem capable of supporting sustainable long-term growth and development across the nation.
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