The Access to Business Funding Bill is on track for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. The legislation aims to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and globally.
Kamikamica highlighted the critical need for improved access to finance to empower economic growth, particularly in rural regions where cooperatives are highly effective, notably among the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which underscores the importance of sustainable cooperative models in achieving economic development and social advancement.
The Fijian government is also working to modernize the legal framework governing cooperatives through proposed amendments to the Co-operatives Act, further reinforcing its commitment to strengthening this vital sector. A newly established Cooperative Development Fund has just gained parliamentary approval, aimed at enhancing the operational capabilities of cooperatives, which reflects the government’s dedication to fostering economic resilience.
Public consultations held earlier this year revealed significant barriers SMEs face in accessing traditional financing, largely due to inadequate revenue streams, credit histories, or sufficient collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing options, including a small-offer regime that allows private companies to raise equity capital more effortlessly, as well as facilitating investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the legislation moves toward approval, there is growing optimism that it will create a more inclusive financial landscape in Fiji. This initiative could empower entrepreneurs and foster local economic growth, benefiting the wider community and enhancing the overall resilience of Fiji’s economy. The commitment to revitalizing access to finance is a hopeful sign for the future of MSMEs and cooperatives in Fiji, paving the way for a robust entrepreneurial ecosystem capable of sustaining long-term growth and development.
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