The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation aims to tackle the substantial financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that are recognized both domestically and internationally.
Kamikamica emphasized that access to finance is crucial for economic empowerment, particularly in rural areas where cooperatives, especially among the indigenous Taukei population, have proven effective. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which highlights the potential of cooperative models in supporting sustainable development and social progress.
In a bid to strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives with amendments to the Co-operatives Act anticipated this year. Furthermore, the newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capacity of cooperatives, reaffirming 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 such as inadequate revenue histories, credit ratings, and the lack of sufficient collateral. This situation has created a significant funding gap. The Access to Business Funding Bill intends to address these challenges by introducing innovative solutions, including a small-offer regime to enable private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is growing optimism that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to benefit the broader community, enhancing the overall resilience of Fiji’s economy. The proactive measures encompassed in this legislation reflect a hopeful commitment by the Fijian government to nurturing a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
This legislative development offers a promising pathway for addressing the financial challenges faced by MSMEs and cooperatives, paving the way for transformative economic opportunities across Fiji.
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