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, in a parliamentary session. This important piece of legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues recognized both nationally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives have proven effective, particularly among indigenous Taukei communities. This initiative aligns with the United Nations’ recognition of 2025 as the International Year of Cooperatives, underscoring the vital role cooperative models can play in promoting sustainable economic development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act anticipated later this year. Additionally, the newly established Cooperative Development Fund, recently approved by Parliament, is designed to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this critical sector.
Public consultations conducted earlier this year revealed that many SMEs encounter significant barriers to accessing traditional financing due to inadequate revenue histories, credit ratings, or collateral, which has resulted in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions that include a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses, there is a significant sense of optimism about its potential to create a more inclusive financial environment in Fiji. This initiative aims to empower entrepreneurs and stimulate local economic growth, yielding significant benefits for the broader community and ultimately enhancing the resilience of Fiji’s economy. The proactive approach taken by the government reflects a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development for the nation.
Comment: The emphasis on enhancing accessibility to finance specifically for communities that face challenges in traditional financing is a significant step towards inclusive growth. The potential impact of this legislation could reshape the economic landscape by empowering local businesses and fostering sustainability.
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