The Access to Business Funding Bill is set for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent session in Parliament. This crucial legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues highlighted both locally and internationally.
Kamikamica underscored the vital need for improved access to finance, particularly in rural regions where cooperatives, especially among the indigenous Taukei communities, have demonstrated effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the essential role of cooperative models in driving sustainable economic development and social advancement.
To enhance support for the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Furthermore, the recently established Cooperative Development Fund, which received parliamentary approval, aims to significantly boost the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations held earlier in the year revealed that many SMEs face significant barriers to accessing traditional financing due to factors such as inadequate revenue histories, lacking credit ratings, and insufficient collateral. This situation has led to a substantial funding gap that the Access to Business Funding Bill seeks to bridge through innovative financing solutions. These include a small-offer regime that facilitates easier raising of equity capital for private companies 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 building about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could result in significant benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation marks a pivotal moment for MSMEs and cooperatives in Fiji, offering them the tools necessary to thrive and contribute to the country’s economic landscape in meaningful ways.
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