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 recent parliamentary session. This significant legislation is designed to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues that have been recognized both locally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the critical role that cooperative models can play in fostering sustainable economic development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. A newly approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs encounter barriers in accessing traditional financing, often due to insufficient revenue histories, credit ratings, or collateral. This has resulted in a significant funding gap that the Access to Business Funding Bill seeks to bridge by introducing innovative financing solutions. These include a small-offer regime allowing 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 moves toward approval, optimism is growing about its potential to create a more inclusive financial environment in Fiji. This initiative aims to empower entrepreneurs and stimulate local economic growth, which could lead to significant positive outcomes for the broader community and enhance the resilience of Fiji’s economy. The proactive measures outlined in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting long-term growth and development throughout the nation.
This forthcoming legislative action could be a turning point for many businesses struggling to find financial footing, allowing them to thrive and contribute more effectively to Fiji’s economic landscape.
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