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. This crucial legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues that are increasingly recognized both locally and internationally.
Kamikamica emphasized the pressing need for improved access to finance, especially in rural areas where cooperatives have historically proven effective, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the vital role that cooperatives can play in fostering sustainable economic growth and social development.
In support of this initiative, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be tabled later this year. Furthermore, the newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs encounter formidable barriers to accessing traditional financing options, often due to inadequate revenue histories, credit ratings, or collateral. This has led to a substantial funding gap that the Access to Business Funding Bill seeks to bridge through innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
With the bill moving closer to approval, there is a growing sense of optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises positive outcomes for the wider community, enhancing the resilience of Fiji’s economy. The government’s proactive approach reflects a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
This legislation not only targets financial inclusion but also signals a broader recognition of the significant role that cooperatives can play in economic empowerment, particularly in rural areas where access to traditional financial systems has been challenging.
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