The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This significant piece of legislation aims to address the financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an important issue recognized both locally and internationally.
Kamikamica emphasized the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the vital role cooperative models can play in promoting sustainable economic development and social advancement.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Furthermore, the recently established Cooperative Development Fund aims to bolster the operational capabilities of cooperatives, reinforcing the government’s commitment to this critical sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, which contribute to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing alternative financing solutions, including a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative could significantly benefit the wider community and strengthen the resilience of Fiji’s economy.
The proactive measures reflected in this legislation signify a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting long-term growth and development throughout the nation.
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