The Access to Business Funding Bill is set to be approved by next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This pivotal legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized on both local and global scales.
Kamikamica emphasized the urgent need for improved access to finance, especially in rural regions where cooperatives have demonstrated effectiveness, particularly among the indigenous Taukei population. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the significant role that cooperative models can play in fostering sustainable economic development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework that governs cooperatives, with anticipated amendments to the Co-operatives Act this year. Furthermore, the recently established Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to this vital area of the economy.
Results from public consultations earlier this year revealed that many SMEs struggle to access traditional financing avenues, often due to barriers such as inadequate revenue histories, poor credit ratings, and lack of collateral. This has resulted in a substantial funding gap that the Access to Business Funding Bill seeks to address by introducing innovative financial solutions. This includes a small-offer regime that allows private companies to raise equity capital more easily, along with provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, optimism grows regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is expected to deliver considerable benefits to the broader community and strengthen the resilience of Fiji’s economy. The proactive measures taken by the government indicate a hopeful commitment to nurturing a dynamic entrepreneurial ecosystem that can sustain long-term growth and adaptability.
This initiative not only highlights the importance of supporting local businesses but also reflects a broader movement towards inclusive economic growth, which is essential for the prosperity of the nation.
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