Fiji’s New Bill: A Game Changer for Small Business Funding?

The Access to Business Funding Bill is scheduled for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a parliamentary session. This significant legislation aims to address the financial struggles encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both nationally and internationally.

Kamikamica underscored the crucial need for improved access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative is also in line with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in supporting sustainable economic growth and social advancement.

To bolster the cooperative sector, the Fijian government aims to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act expected later this year. Additionally, the recently approved Cooperative Development Fund is designed to enhance the operational capacities of cooperatives, reflecting the government’s commitment to this vital sector.

Public consultations, conducted earlier this year, revealed that many SMEs struggle to access traditional financing due to barriers like insufficient revenue histories or collateral, leading to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing alternative financing solutions, including a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).

With the bill’s progression towards approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could provide significant benefits to the wider community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to foster a vibrant entrepreneurial ecosystem capable of supporting sustained growth and advancement throughout the nation.