A significant story has emerged from Fiji, illustrating how a group of micro, small, and medium enterprise (MSME) owners united to advocate against the banks regarding the planned phasing out of cheques. This initiative highlights the challenges they faced and the need for effective communication in their regional ecosystem. The efforts originated from the Fiji Micro Small and Medium Entrepreneurs Community (FMSMEC), known for its active engagement through a Viber group.
As members interacted with banks, they recognized that eliminating cheques posed serious risks that could disrupt their operations. Sharing this story with other MSME owners, networks, and stakeholders is vital for broader understanding.
In an article published on April 27, 2024, concerns were raised about this transition. While MSMEs welcomed the advantages of digital transformation, they opposed the manner in which the phase-out of cheques was being implemented.
The decision to phase out cheques began with a proposal from the Association of Banks in Fiji (ABIF) to the Reserve Bank of Fiji (RBF) in December 2021, which the previous government approved without broader consultations. By September 2022, the ABIF and RBF formally announced the intent to discontinue cheques starting in 2024, but the FMSMEC members felt that insufficient attention was being given to the challenges MSMEs face with current digital payment platforms.
In early March 2024, discussions within the FMSMEC group highlighted the lack of consultation throughout this process, particularly for rural businesses. This initiated a campaign for better management of the transition, supported by stories of real challenges encountered by MSMEs. A working group was formed to facilitate the lobbying initiative, which gained traction on social media channels, reaching both the RBF and ABIF.
Responding to this push, the ABIF adjusted its timeline, moving the cessation of new cheque book issuance from April 2024 to July 1, 2024, and ceasing cheque processing from January 1, 2025. This shift was a significant sign that the FMSMEC’s efforts were catching the attention of decision-makers.
Following further advocacy, including a written submission to the RBF Governor, calls for consultation began to gain momentum. Stakeholders, including a major private company, echoed the FMSMEC’s concerns, underscoring the necessity for a more gradual transition process.
Despite the initial quick announcements, it remained clear that genuine consultations had not been conducted with the MSME community. Concerns regarding the legislative changes needed to support this shift were raised, as over 40 amendments would be required before 2025.
A pivotal moment occurred on April 24, 2024, when an awareness session facilitated by the RBF brought together the FMSMEC and the banks. This engagement allowed for acknowledgment of the widespread readiness issues among banks to accommodate the proposed changes.
Ultimately, the ABIF’s June 2024 announcement to revoke the previous timeline for phasing out cheques was a significant victory for MSME advocates. Feedback from the community emphasized the need for thorough consultations before implementing such major reforms.
This case illustrates the importance of consulting with MSMEs on decisions that substantially affect their operations, as they play a crucial role in Fiji’s economy, contributing 19 percent to the GDP and employing a large portion of the workforce.
The experience of the FMSMEC underlines the importance of building a robust MSME network that prioritizes consultations, technical discussion, and policy engagement to enhance the entrepreneurial landscape in Fiji.