The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This crucial legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged both locally and internationally.
During his statement, Kamikamica highlighted the pressing need for better access to finance, particularly in rural regions, where cooperatives have shown strong effectiveness, especially among the indigenous Taukei communities. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, which underlines the important role that cooperative models can play in promoting sustainable economic development and social advancement.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. The Cooperative Development Fund, recently approved by Parliament, aims to significantly bolster the operational capabilities of cooperatives, reinforcing the government’s commitment to this critical economic sector.
Public consultations held earlier this year revealed that many SMEs encounter significant barriers in accessing traditional financing options due to obstacles like inadequate revenue histories, credit ratings, or collateral, which has resulted in a significant funding gap. The Access to Business Funding Bill intends to bridge this gap through innovative financial solutions, including a small-offer regime that allows private companies to more easily raise equity capital, as well as provisions for investment-driven options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is a rising 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 yield significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The proactive government measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of fostering sustained growth and development across the nation.
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