The Access to Business Funding Bill is set to gain approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. The legislation aims to tackle the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, a matter recognized both locally and globally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This legislative move aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential of cooperative models in promoting sustainable development and social progress.
To bolster the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. The introduction of a newly established Cooperative Development Fund—recently approved by Parliament—aims to significantly enhance the operational capabilities of cooperatives, reflecting the government’s commitment to fortifying this vital sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs struggle to secure traditional financing due to barriers such as inadequate revenue histories, credit ratings, and collateral, which have created a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, there is a growing sense of optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative could have positive ramifications for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures indicate a hopeful commitment to developing a vibrant entrepreneurial ecosystem capable of supporting sustainable growth and development across the nation.
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