The Access to Business Funding Bill is expected to gain approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This legislation addresses significant financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue recognized both locally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, especially in rural areas where cooperatives have proven effective, notably 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 these models can play in promoting sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the government has established a Cooperative Development Fund, approved by Parliament, which aims to enhance the operational capabilities of cooperatives, demonstrating a commitment to this vital sector of the economy.
Previous public consultations revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including a small-offer regime to facilitate equity capital raising 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, there is growing optimism about its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield considerable benefits for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This moment represents a significant step for Fiji’s economic landscape, highlighting the government’s dedication to strengthening MSMEs and cooperatives, which play a crucial role in fostering local economic resilience.
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