Pacific’s First Access To Business Funding Act To Expand Financing Options For Businesses In Fiji

SUVA, FIJI —This week, Fiji approved a groundbreaking Access to Business Funding Act, which will enable innovative financing options to increase capital access for the country’s Micro, Small and Medium-sized enterprises (MSMEs). The new Act was developed by the Ministry of Trade, Co-operatives, Micro, Small and Medium Enterprises, and Communications (the Ministry) and the Reserve Bank of Fiji (RBF), with support from the Asian Development Bank’s Pacific Private Sector Development Initiative (PSDI).

The new Act makes Fiji the first country in the Pacific to introduce a comprehensive regulatory framework that can unlock new, innovative financing options for MSMEs, including crowdfunding, peer-to-peer lending, and small offers regimes, while establishing clear guidelines for ensuring investor protection.

“The Access to Business Funding Act being passed in Parliament is a welcome step towards providing alternative financing options. This will make Fiji a more attractive destination for investment and business, fostering the development and growth of MSMEs in Fiji,” said Deputy Prime Minister and Minister for Trade, Co-operatives, Micro, Small and Medium Enterprises and Communications, Hon. Manoa Kamikamica.

Governor of the Reserve Bank of Fiji, Ariff Ali, highlighted, “This law will unlock alternative financing options for MSMEs under the three regimes of small offers, crowdfunding and peer-to-peer lending. These new and innovative financing platforms are expected to enable affordable and easier access to funding for MSMEs, which will further stimulate growth for the sector and improve contribution to Gross Domestic Product (GDP). At around 18 percent, Fiji’s MSME contribution to GDP is comparatively lower than the 40 percent for emerging markets economies, a gap we hope this reform can help close.”

The passing of the Act follows extensive stakeholder consultations, led by the Ministry and the RBF. Representatives from the private sector, including MSMEs, the superannuation fund, banks, credit unions, development partners and civil society organisations, contributed valuable feedback to ensure the legislation reflects the needs of businesses and investors alike.

It also aligns with the Fiji Government’s National Development Plan 2025-2029 and Vision 2050 as well as the RBF’s National Financial Inclusion Strategy target of improving access to finance for MSMEs to achieve broad-based, inclusive and sustainable growth.

“PSDI is proud to have supported the development of this new legislation,” said PSDI Senior Finance Sector Specialist Jeremy Cleaver. “We are now looking forward to working with the Ministry and the RBF to use the provisions of the legislation to deliver platforms that offer new, well-regulated financing options for Fijian businesses.”

PSDI is an Asian Development Bank (ADB) technical assistance program undertaken in partnership with the governments of Australia and New Zealand. It supports ADB’s 14 Pacific developing member countries to improve the enabling environment for business and achieve inclusive, private sector-led economic growth, including through reforms designed to increase the availability of finance for Pacific businesses.

© Scoop Media