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 encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have been acknowledged both locally and internationally.
Kamikamica stressed the essential need for improved access to finance, particularly in rural regions where cooperatives have been notably effective, especially among the indigenous Taukei population. This legislative initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the significant role that cooperative models can play in fostering sustainable economic and social development.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives by proposing amendments to the existing Co-operatives Act this year. The introduction of the Cooperative Development Fund, which recently received parliamentary approval, aims to significantly enhance the operational capacity of cooperatives, thereby showcasing the government’s commitment to bolstering this critical sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to factors such as inadequate revenue histories, credit ratings, or collateral, contributing to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative solutions. It includes a small-offer regime that would facilitate easier equity capital raising for private companies and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is growing optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to significantly benefit the wider community and enhance the overall resilience of Fiji’s economy. The proactive measures encompassed in this legislation reflect a hopeful commitment by the Fijian government to foster a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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