The Access to Business Funding Bill is expected to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged both nationally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, especially in rural areas where cooperatives have demonstrated effectiveness, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, highlighting the essential role cooperative models can play in promoting sustainable development and social progress.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a newly established Cooperative Development Fund has been approved by Parliament, which aims to enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle with accessing traditional financing options due to barriers such as inadequate revenue histories, credit ratings, or collateral. This situation has resulted in a significant funding gap, which the Access to Business Funding Bill seeks to bridge through innovative financing solutions. These include introducing a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield considerable benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures embodied in this legislation reflect a hopeful commitment from the government to foster a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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