The Access to Business Funding Bill is set for approval by next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This crucial legislation aims to address financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, issues that are recognized both locally and on an international scale.
Kamikamica emphasized the urgent need for improved financial access, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among Fiji’s indigenous Taukei communities. This initiative coincides with the United Nations’ announcement that 2025 will be the International Year of Cooperatives, which underscores the role cooperative models can play in fostering sustainable development and social progression.
The government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. In addition, a Cooperative Development Fund has recently received parliamentary approval, aiming to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this essential sector.
Public consultations earlier in the year highlighted the difficulties many SMEs encounter when trying to access traditional financing, mainly due to barriers like inadequate revenue histories, credit ratings, and collateral. This situation has created a significant funding gap, which the Access to Business Funding Bill aims to bridge through innovative solutions. The Bill proposes a small-offer regime that will allow private companies to raise equity capital more conveniently and includes provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, optimism is growing regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver substantial benefits to the wider community and reinforce the resilience of Fiji’s economy. The proactive measures elucidated in this legislation mark a hopeful commitment of the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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