The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation aims to tackle the financial challenges experienced by micro, small, and medium enterprises (MSMEs) and cooperatives, recognized as critical issues not only within Fiji but globally.
Kamikamica highlighted the pressing need for enhanced access to finance, particularly in rural regions where cooperatives have effectively empowered communities, especially among the indigenous Taukei population. This initiative is timely, coinciding with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the importance of sustainable cooperative models for economic development.
The government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund aims to strengthen the operational capacity of cooperatives, reflecting the government’s commitment to promoting economic resilience.
Public consultations conducted earlier this year revealed that many SMEs struggle to secure traditional financing due to a lack of established revenue streams, credit histories, or sufficient collateral, leading to a significant funding gap. The Access to Business Funding Bill proposes innovative solutions to bridge this gap, including introducing a small-offer regime that will allow private companies to raise equity capital more readily, as well as facilitating investment-geared crowdfunding options such as equity crowdfunding and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is optimism that it will create a more inclusive financial environment in Fiji. By improving financing access for MSMEs and cooperatives, this initiative has the potential to empower entrepreneurs, foster local economic growth, and enhance community resilience.
This legislative effort represents a meaningful step toward transforming Fiji’s business landscape, offering the tools that MSMEs and cooperatives need to thrive. There is a collective hope that this bill will pave the way for a vibrant entrepreneurial ecosystem that benefits the broader community, ultimately contributing to the economic vitality of Fiji.
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