The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This important legislation is designed to tackle significant financial barriers encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which are recognized as vital issues both locally and globally.
Kamikamica highlighted the crucial need for improved access to finance to empower economic growth, especially in rural areas where cooperatives have proven to be effective, particularly among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the important role of cooperative models in promoting sustainable development and social advancement.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives. This includes proposed amendments to the Co-operatives Act anticipated this year. Additionally, a newly established Cooperative Development Fund, recently approved by Parliament, aims to significantly enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to reinforcing this critical sector.
Recent public consultations revealed that many SMEs struggle to access traditional financing due to challenges such as insufficient revenue histories, poor credit ratings, or lack of collateral, resulting in a considerable funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing options, including a small-offer regime that simplifies the process for private companies to raise equity capital, 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 growing optimism that it will create a more inclusive financial landscape in Fiji. This initiative has the potential to empower entrepreneurs and stimulate local economic growth, ultimately benefiting the broader community and enhancing the resilience of Fiji’s economy. The proactive measures outlined in this legislation reflect a hopeful commitment from the Fijian government to foster a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
This legislative development represents a significant stride towards addressing the financial challenges faced by MSMEs and cooperatives in Fiji, paving the way for transformative economic opportunities across various communities.
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