The Access to Business Funding Bill is expected to gain approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant piece of legislation aims to address the critical financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and globally.
Kamikamica highlighted the urgent need for enhanced access to finance, stressing the importance of support for rural communities where cooperatives have demonstrated effectiveness, particularly among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the capacity for cooperative models to foster sustainable economic growth and social progression.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, aiming for amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund, recently approved by Parliament, is designed to bolster the operational capabilities of cooperatives and reflects the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as limited revenue histories, inadequate credit ratings, or lack of collateral, contributing to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap with innovative financing solutions, including a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises positive outcomes for the broader community and enhances the resilience of Fiji’s economy. The government’s proactive approach highlights a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem that can support sustained growth and development across the nation.
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