The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This crucial legislation is designed to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges recognized on both local and international fronts.
Kamikamica emphasized the importance of improving access to finance for economic empowerment, particularly in rural regions where cooperatives have had a significant impact, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the potential of cooperative models to contribute to sustainable development and social advancement.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be introduced this year. Additionally, the establishment of a Cooperative Development Fund—recently approved by Parliament—aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to strengthening this vital economic area.
Public consultations conducted earlier this year revealed that many SMEs face significant barriers in accessing traditional financing, often due to factors such as inadequate revenue histories, credit ratings, or collateral. This has created a substantial funding gap that the Access to Business Funding Bill aims to bridge through innovative financing solutions. These include a small-offer regime that simplifies the raising of equity capital for private companies, as well as provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses, there is growing optimism that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative is expected to have positive implications for the broader community and strengthen the resilience of Fiji’s economy. The proactive measures included in this legislation signal a hopeful commitment from the government to develop a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, the approval of this bill represents a significant step forward in addressing the financial challenges faced by MSMEs and cooperatives in Fiji, paving the way for a more resilient and inclusive economic future.
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