The Access to Business Funding Bill is set to be approved next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who shared this information during a session in Parliament. This important legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern that has garnered national and international attention.
Kamikamica highlighted the pressing need for improved access to finance, especially in rural areas where cooperatives have historically shown effectiveness among the indigenous Taukei population. This initiative is in alignment with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the role of cooperative models in fostering sustainable development and social progress.
To support this sector, the Fijian government intends to modernize the legal framework governing cooperatives through anticipated amendments to the Co-operatives Act this year. Moreover, a recently approved Cooperative Development Fund aims to enhance operational capabilities within cooperatives, reaffirming the government’s commitment to this crucial economic sector.
Public consultations earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral. This has led to a significant funding gap that the Access to Business Funding Bill aims to address via alternative financing solutions. These include a small-offer regime that will allow private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, optimism is mounting regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant positive outcomes 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 nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation signifies a notable step in addressing the existing financial disparities and is expected to transform the access to funding for many aspiring businesses in Fiji, ultimately fostering a more robust and sustainable economy.
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