The Access to Business Funding Bill is slated for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This upcoming legislation is designed to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern highlighted both domestically and internationally.
Kamikamica underscored the urgent necessity for improved access to finance, particularly in rural areas where cooperatives have proven effective, notably among the indigenous Taukei communities. This initiative is aligned with the United Nations’ declaration of 2025 as the International Year of Cooperatives, reinforcing the importance of cooperative models in fostering sustainable development and social progress.
To enhance the cooperative sector, the Fijian government plans to update the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. A newly created Cooperative Development Fund, which recently received parliamentary approval, aims to boost the operational capabilities of cooperatives and underline the government’s commitment to this vital economic sector.
Public consultations conducted earlier in the year revealed significant barriers that many SMEs encounter in accessing traditional financing, such as inadequate revenue histories, credit ratings, or collateral. This has contributed to a notable funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing solutions, including a small-offer regime to facilitate easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, optimism is growing about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative may offer considerable benefits to the broader community and enhance the overall resilience of Fiji’s economy. The government’s proactive approach, as reflected in this legislation, represents a hopeful commitment to fostering a vibrant entrepreneurial ecosystem that can support sustained growth and development throughout the nation.
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