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 recent parliamentary session. This vital piece of legislation aims to tackle the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both domestically and internationally.
Kamikamica emphasized the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underscoring the role of cooperative models in fostering sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives and is preparing amendments to the Co-operatives Act this year. In addition, a newly established Cooperative Development Fund has been approved by Parliament to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector of the economy.
Public consultations earlier this year revealed that many SMEs face substantial barriers when attempting to access traditional financing options. Issues 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 by introducing alternative financing solutions, including a small-offer regime that will help private companies raise equity capital more easily, alongside provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, growing optimism surrounds its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative could yield significant benefits for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation marks a crucial step in addressing the financing challenges faced by MSMEs, paving the way for a positive transformation in Fiji’s economic landscape. By supporting small businesses and cooperatives, the government not only stimulates economic growth but also nurtures community resilience and empowerment.
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