The Access to Business Funding Bill is set to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This crucial legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have gained attention both nationally and internationally.
Kamikamica emphasized the crucial need for improved access to finance, particularly in rural regions where cooperatives have proven effective, especially among the indigenous Taukei community. This initiative is in alignment with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential role of cooperatives in fostering sustainable economic development and social progress.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Furthermore, the recently established Cooperative Development Fund aims to bolster the operational capacities of cooperatives, showcasing the government’s commitment to this vital sector.
Earlier public consultations revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate credit histories, revenue streams, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could significantly benefit the broader community and strengthen the resilience of Fiji’s economy.
The proactive measures by the government reflected in this legislation indicate a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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