The Access to Business Funding Bill is expected to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This critical legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges recognized both nationally and internationally.
Kamikamica highlighted the essential need for improved access to finance, especially in rural regions where cooperatives have shown their effectiveness, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models in fostering sustainable development and social advancement.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, underscoring the government’s commitment to strengthening this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle with traditional financing options due to barriers such as inadequate revenue histories, credit ratings, and collateral, which has led to a significant funding gap. The Access to Business Funding Bill seeks to address these challenges through innovative financing options, including a small-offer regime that simplifies the raising of equity capital for private companies, as well as 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 about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative holds promise not only for the MSME sector but also for the broader community, ultimately enhancing the resilience of Fiji’s economy. The proactive measures indicated by this legislation point towards a hopeful future for MSMEs and cooperatives in Fiji, paving the way for a vibrant entrepreneurial ecosystem capable of sustainable, long-term growth and development.
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