Work is underway to implement the recently enacted Access to Business Funding Act, with the Small Offers regime soon to be available to Micro, Small, and Medium-sized Enterprises (MSMEs) in Fiji. This legislation, passed by Parliament in March, aims to enhance capital-raising options for local businesses and is being put into action by the Reserve Bank of Fiji (RBF).
Caroline Waqabaca, RBF’s chief manager of Financial System Development Group, explained that the implementation will involve finalizing regulations that require Ministerial approval. The Small Offers regime, which does not need an intermediary, will be the first introduced, followed by other platforms like Equity Crowdfunding and Peer-to-Peer Lending.
Several local firms have already expressed interest in providing the necessary intermediary services for the latter platforms, although options are being explored from both local and international arenas. Waqabaca emphasized the importance of raising awareness among MSMEs regarding the new funding mechanisms and the necessary steps to access them.
This initiative to broaden financing avenues for MSMEs aligns with Fiji’s commitment to stimulate economic growth and empower local entrepreneurs. With MSMEs currently contributing only 18% to the national GDP—well below the 40% average for emerging markets—this legislation represents a crucial opportunity for growth.
Waqabaca highlighted that the ease of the Small Offers regime will allow businesses to raise capital with a simplified information package that requires Reserve Bank approval. The proactive measures being taken through this initiative could significantly enhance financial accessibility and independence for local businesses, fostering a resilient and diverse economic landscape in Fiji.
The move is a beacon of hope for entrepreneurship in Fiji, emphasizing the collaborative effort between the government, financial institutions, and local businesses to unlock the potential of the MSME sector.
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