The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue highlighted both locally and internationally.
Mr. Kamikamica stressed the crucial need for improved access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei communities. The initiative is aligned with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the significant role that cooperative 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 expected amendments to the Co-operatives Act this year. Furthermore, the recently approved Cooperative Development Fund aims to enhance the capabilities of cooperatives, reflecting the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral. This has created a substantial funding gap that the Access to Business Funding Bill seeks to address through innovative financing solutions. This includes a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, there is increasing optimism that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislative effort shows promise not only for enhancing the financial landscape in Fiji but also for invigorating local economies and promoting sustainable practices, particularly through the cooperative sector, which is vital for communities, especially in rural areas.
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