Fiji’s Deputy Prime Minister and Minister for Trade Manoa Kamikamica today announced the Access to Capital Bill, addressing Micro Small Medium Enterprises (MSMEs) financing challenges in the country.
The Bill proposes new funding alternatives for MSMEs who have had to struggle to access finance, sometimes none at all because existing funding sources including commercial banks do not offer MSME friendly or MSME tailored products and services such as lower interest rates, collateral – free and unsecured lending.
The Bill that will be put to the public for their feedback proposes Small Offers, Equity Crowdfunding, and Peer-to-Peer Lending as alternative funding raising sources for MSMEs.
“This initiative aims to explore novel ways of funding projects, fostering collaboration, and ultimately enhancing the overall resilience of MSMEs in Fiji,” Kamikamica said.
“The Ministry had spent more than $100 million in grants for MSME development. This initiative would also ease pressure on public finances which can be prioritised in other areas of national development.”
Discussions and industry consultations on the draft legislation will be carried out by the Working Group comprising of the Ministry of Trade Co-operatives Small Medium Enterprises and Communications, Ministry of Finance, Reserve Bank of Fiji, Office of the Solicitor – General and Asian Development Bank. This is aimed at obtaining views from MSME stakeholders and general public to introduce alternative financing that would essentially assist MSMEs in accessing to finance.
This will be followed by public consultations from February 9 to 16, 2024. Public meetings will be held in Suva, Nasinu, Sigatoka, Nadi, Lautoka, Ba, Tavua, Rakiraki, Labasa, and Savusavu.
| Date | Time | Location | Venue |
| Friday, 9 February 2024 | 9 – 11am | Suva | Flea Market, Suva |
| 11:30am – 1pm | Nasinu/Nakasi | Commissioner Central’s Office | |
| Monday, 12 February 2024 | 10 – 12pm | Sigatoka | Sigatoka Town Council Hall, Sigatoka |
| 3 – 5pm | Nadi | Nadi Town Council Chamber | |
| Tuesday, 13 February 2024 | 10 – 12pm | Lautoka | Level 2 Rogorogoivuda House, Lautoka |
| 2 – 4pm | Ba | Ba Town Council Hall | |
| Wednesday, 14 February 2024 | 10 – 12pm | Tavua | Garvey Park, Tavua |
| 2 – 4pm | Rakiraki | Rakiraki Market | |
| Thursday, 15 February 2024 | 2 – 4pm | Labasa | Co-operative Office North, Rt Raobe Building Labasa |
| Friday, 16 February 2024 | 10 – 12pm | Savusavu | Co-operative Office, Savusavu |
Feedback is welcomed until February 19, with the working group incorporating insights into the final proposal.
Small Offers:
- Allow companies to raise funds with limited investor disclosure obligations.
- Targets friends, families, and those familiar with the business such as customers, suppliers, and soft business network.
- Australia and New Zealand, permit companies to raise capital up to $2 million from a maximum of 20 investors over 12 months.
Equity Crowd Funding:
- Involves large groups contributing money for commercial and economic purposes.
- Three main participant: the initiator of the project; the funders and the moderating organization (intermediary) that connects the parties.
Peer to Peer Lending:
- Entities raise funds through debts facilitated by a licensed intermediary.
- Lenders or individuals lend funds to businesses, earning interest upon loan repayment.
