A group of small and medium enterprise (MSME) owners in Fiji has come together to advocate against the banks, aiming to prevent disruptions that the impending phasing out of cheques could cause to their businesses. This initiative sprang from the Fiji Micro Small and Medium Entrepreneurs Community (FMSMEC), an active network running primarily through a Viber group. The members recognized through their interactions with banks that the transition away from cheques would likely create more issues for their operations.
The FMSMEC made their concerns known through media outlets, articulating their support for the efficiencies brought by digital transformation but opposing the manner in which cheque discontinuation was being implemented.
The Reserve Bank of Fiji (RBF) reported that the proposal to phase out cheques was initiated by the Association of Banks in Fiji (ABIF) back in December 2021, with the government approving it without consulting affected MSMEs. Public announcements in 2022 indicated that cheques would start to be phased out in 2024. However, MSMEs faced significant challenges adapting to current digital payment systems, which contributed to their resistance against the decision.
In early March 2024, an FMSMEC member suggested on the Viber group that action be taken, leading to discussions that ultimately resulted in forming a lobbying group supported by MSME development specialists. As feedback from MSMEs circulated on social media, it gained traction with the RBF and ABIF, highlighting the collective discontent and drawing attention to the issues faced.
As a reaction to this pushback, the ABIF delayed the cheque phase-out timeline, pushing initial deadlines from April to July 2024, with final cessation of cheque processing moved to January 2025. The FMSMEC recognized this as a significant achievement, demonstrating that their lobbying efforts were effective.
Following a formal submission to the RBF from the MSME community expressing their concerns, the RBF announced that it would consult relevant stakeholders about the transition. A subsequent meeting between the FMSMEC and the RBF Governor further reinforced the need for better management of the process and realistic timelines.
Despite these developments, concerns remained about the overall lack of nationwide consultation. No formal discussions had taken place regarding the impact of the proposed changes on MSMEs or the public. Businesses began announcing their decision to stop accepting cheques ahead of the designated timelines due to the confusion and lack of clarity surrounding the transition.
The advocacy by the FMSMEC highlighted the need for various legislative amendments to facilitate the end of cheques, indicating a significant gap in the government’s planning process. During a significant awareness session facilitated by the RBF in April 2024, it became clear that banks were not prepared for the proposed transition, prompting further discussion between stakeholders.
Ultimately, in June 2024, the ABIF retracted the planned phase-out dates for cheque processing after receiving feedback indicating the necessity for more comprehensive consultations. This outcome was celebrated by the FMSMEC and the broader MSME community, underscoring the importance of engaging with businesses on matters that significantly affect their operations and livelihoods.
The experience serves as a crucial lesson on the need for involving MSMEs in decision-making processes that impact them. With MSMEs accounting for a significant portion of Fiji’s GDP and employment, it has become evident that the upcoming transitions must be carefully considered to avoid unintended disruptions for businesses and consumers alike.
The FMSMEC’s effective lobbying highlights the importance of building networks among MSMEs to strengthen their capacity for advocacy and engagement with policymakers.