The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This critical legislation aims to address the financial struggles experienced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized on both national and international levels.
Kamikamica emphasized the importance of accessible financing for economic empowerment, especially in rural areas. He noted that cooperatives have proven highly effective in these regions, particularly among the indigenous Taukei community. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which focuses on the potential of cooperative models to drive sustainable development and social advancement.
To strengthen the cooperative sector, the Fijian government plans to modernize the Co-operatives Act this year. Recently, the Cooperative Development Fund was established and approved by Parliament, intending to enhance the operational capabilities of cooperatives significantly and demonstrate the government’s commitment to this sector.
Public consultations highlighted that many SMEs face considerable barriers in accessing traditional financing, primarily due to insufficient revenue histories, lack of credit ratings, and inadequate collateral. Consequently, a substantial funding gap has arisen. The Access to Business Funding Bill aims to close this gap through innovative solutions, including a small-offer regime that facilitates the easier raising of equity capital for private companies and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, there is growing optimism about its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative holds promise not only for the MSME sector but for the broader community as well, enhancing the resilience of Fiji’s economy. The proactive measures undertaken by the government indicate a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
Overall, this legislative development is a significant step forward for Fiji’s economic ecosystem, and the anticipated benefits could profoundly impact various communities across the nation.
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