The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation is designed to address the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives within Fiji, a challenge recognized both nationally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei communities. This initiative is in line with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the potential role of cooperative models in fostering sustainable development and social progress.
To further support the cooperative sector, the Fijian government has committed to modernizing the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Additionally, the recently established Cooperative Development Fund aims to bolster the operational capabilities of cooperatives, reflecting the government’s dedication to this vital area of the economy.
Public consultations revealed that many SMEs struggle to access traditional financing options. Barriers such as insufficient revenue histories, credit ratings, and collateral contribute to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including 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, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this legislative initiative has the potential to significantly benefit the broader community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment by the Fijian government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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