The Access to Business Funding Bill is slated to receive parliamentary approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This important legislation addresses the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern that is increasingly recognized on both local and global stages.
Kamikamica emphasized the urgent need for enhanced access to finance, particularly in rural areas, where cooperatives have shown considerable effectiveness, especially within the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential of cooperative models to foster 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 expected to be proposed this year. Furthermore, the recently established Cooperative Development Fund, which has received parliamentary approval, aims to enhance the operational capacities of cooperatives, reflecting the government’s commitment to this crucial sector.
Public consultations earlier this year revealed that many SMEs face significant barriers when seeking traditional financing due to factors such as insufficient revenue histories, credit ratings, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill seeks to address this gap through innovative financing solutions, including a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is growing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to benefit the wider community and enhance the resilience of Fiji’s economy. The proactive measures contained in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation. This could potentially set a positive precedent for the future of MSMEs and cooperatives in Fiji.
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