The Access to Business Funding Bill is set to receive approval next week, as announced by the Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both locally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural regions where cooperatives have shown their effectiveness, especially among the indigenous Taukei communities. This initiative is timely as it aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underlining the critical role that cooperative models can play in advancing sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives with amendments to the Co-operatives Act anticipated this year. Additionally, a Cooperative Development Fund, approved by Parliament, is expected to enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to this vital sector.
Earlier public consultations highlighted that many SMEs struggle to access traditional financing due to barriers like insufficient revenue histories, credit ratings, 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 would enable private companies to raise equity capital more easily, alongside provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
With the bill nearing approval, optimism is growing regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to provide substantial benefits to the broader community and strengthen the resilience of Fiji’s economy. The proactive measures highlighted in this legislation indicate a hopeful commitment from the government to foster an entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
In summary, the passage of this bill could be a transformative step for Fiji’s economy, especially for enterprises in rural areas. By improving access to finance, the government aims to uplift communities and promote economic empowerment for all citizens.
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