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 parliamentary session. This significant legislation aims to address the critical financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, highlighted by Kamikamica as pressing issues not only in Fiji but globally.
Kamikamica emphasized the vital role access to finance plays in economic empowerment, particularly for rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. The timing of the Bill is fortuitous, aligning with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which underscores the potential of cooperative models for sustainable economic development and social advancement.
The government’s plans include modernizing the legal framework governing cooperatives by amending the Co-operatives Act this year. Additionally, the recently approved Cooperative Development Fund aims to bolster the cooperative sector’s operational capacity, demonstrating the government’s commitment to fostering economic resilience through innovative financing solutions.
Public consultations earlier this year revealed that many SMEs in Fiji struggle with traditional financing methods due to inadequate revenue streams, lack of credit history, or sufficient collateral. This has created a notable funding gap that the Access to Business Funding Bill seeks to bridge through alternative financing options. Key provisions include allowing private companies to raise equity capital through a small-offer regime and providing avenues for investment-geared crowdfunding such as equity crowdfunding and peer-to-peer lending.
The anticipated approval of this Bill signifies a proactive step by the Fijian government toward nurturing a more inclusive financial landscape. By improving access to finance for MSMEs and cooperatives, the initiative holds great promise for empowering entrepreneurs, fostering local economic growth, and contributing positively to the overall stability of Fiji’s economy.
This plan not only addresses immediate financial access issues but may also pave the way for a thriving entrepreneurial ecosystem, ultimately benefiting the wider community and enhancing economic resilience. The government’s emphasis on cooperative models and innovative funding solutions could indeed transform the business landscape in Fiji.
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