The Access to Business Funding Bill is anticipated to gain approval by next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This crucial legislation is designed to address the significant financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji – issues that have been recognized both nationally and internationally.
Kamikamica highlighted the essential need for improved access to finance, especially in rural areas where cooperatives have demonstrated their effectiveness, particularly among the indigenous Taukei population. This initiative is part of a broader effort that aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which emphasizes the important role of cooperative models in fostering sustainable development and social progress.
To address these challenges, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, further embodying the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs are struggling to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, contributing to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime to facilitate easier equity capital raising, as well as provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is growing optimism about its potential to foster a more inclusive financial environment in Fiji. The initiative could empower entrepreneurs and stimulate local economic growth, ultimately benefiting the broader community and enhancing the resilience of Fiji’s economy. The proactive measures within this legislation reflect a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation, which emphasizes support for cooperative models and aims to reduce barriers for MSMEs, can play a pivotal role in fostering innovation and entrepreneurship in Fiji, creating new opportunities for economic engagement and empowerment in various communities across the nation.
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