The Access to Business Funding Bill is set to receive parliamentary approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent session. The legislation aims to tackle the financial struggles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern acknowledged both locally and internationally.
Kamikamica highlighted the pressing need for better access to finance, particularly in rural areas where cooperatives have proven effective, especially among indigenous Taukei communities. This initiative is in alignment with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the vital role that cooperative models can play in promoting sustainable economic development and social advancement.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. A newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, thus demonstrating the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing alternative financing solutions, including a small-offer regime that allows 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 moves closer to approval, optimism is growing regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to cultivate positive outcomes for the wider community and enhance the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to build a vibrant entrepreneurial ecosystem that supports sustained growth and development throughout the nation.
This development underscores the government’s recognition of the importance of supporting small businesses and cooperatives as essential drivers of economic growth, suggesting a promising future for Fiji’s entrepreneurial landscape.
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