The Access to Business Funding Bill is set to gain approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who made this announcement during a recent parliamentary session. This crucial legislation aims to confront the significant financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue acknowledged both domestically and internationally.
Kamikamica highlighted the pressing need for improved access to finance, especially in rural areas where cooperatives have proven particularly effective among the indigenous Taukei population. This initiative directly aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the potential role that cooperative models can play in facilitating sustainable economic development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Additionally, the recently approved Cooperative Development Fund aims to strengthen the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector.
Earlier public consultations revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, resulting in a notable funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions including a small-offer regime that will allow private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is increasing optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislative initiative could yield significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
This initiative could pave the way for future economic growth, ensuring that businesses, particularly in rural areas, have the support they need to thrive and contribute to the economy.
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