Fiji Capital Bill: Proposes Alternative Funding Sources for MSMEs

suva harbour

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. 

DateTimeLocation 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 TavuaGarvey Park, Tavua
2 – 4pmRakiraki Rakiraki Market 
Thursday, 15 February 2024 2 – 4pm Labasa Co-operative Office North, Rt Raobe Building Labasa 
Friday, 16 February 202410 – 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.
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