The Access to Business Funding Bill is set 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 address the persistent financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue that resonates both locally and globally.
Kamikamica emphasized the critical importance of access to finance for economic empowerment, particularly in rural communities where cooperatives have proven to be effective, especially among the indigenous Taukei population. In line with this legislative initiative, the United Nations has designated 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in driving sustainable development and social progress.
In efforts to further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives through proposed amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund, which has recently gained parliamentary approval, aims to enhance the operational capabilities of cooperatives significantly.
Recent public consultations revealed that many SMEs struggle to access traditional financing due to inadequate revenue streams, insufficient credit histories, or collateral requirements, which create a substantial funding gap. The Access to Business Funding Bill is designed to address these challenges by introducing innovative financing alternatives, including a small-offer regime that enables private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is a growing sense of optimism that it will create a more inclusive financial environment in Fiji. This initiative could empower entrepreneurs and contribute to local economic growth, ultimately benefiting the wider community and enhancing the resilience of Fiji’s economy. The government’s commitment to improving access to finance represents a hopeful and promising strategy to build a robust entrepreneurial ecosystem that can sustain long-term economic development and prosperity for many.
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