The Fijian Parliament is currently reviewing the Access to Business Funding Bill, a legislative initiative designed to address long-standing challenges faced by small and medium enterprises (SMEs) in securing financial support. The bill, introduced by the Minister for Economy, aims to improve access to funding for businesses that have traditionally struggled to obtain capital, particularly those in agribusiness, tourism, and digital start-ups.
SMEs form the backbone of Fiji’s economy, contributing significantly to employment and economic growth. However, limited financing options have remained a persistent obstacle, preventing many businesses from expanding or even sustaining operations. Many entrepreneurs face challenges in securing loans from commercial banks due to high interest rates, strict collateral requirements, and complex application processes. The proposed bill seeks to bridge this gap by introducing a more inclusive financing framework tailored to the needs of small businesses.
A key component of the bill is the expansion of microfinance and alternative funding sources, including venture capital, peer-to-peer lending, and impact investment funds. This provision is expected to encourage financial institutions and private investors to offer funding to businesses that would otherwise be deemed too risky under traditional banking models.
Another major feature of the bill is the establishment of a government-backed SME loan guarantee scheme. Under this scheme, the government will partially underwrite loans, reducing the risk for lenders and increasing approval rates for SMEs. This initiative is expected to provide a financial safety net that encourages banks and lending institutions to support a wider range of businesses, particularly start-ups and those in emerging sectors.
The bill also proposes incentives for commercial banks to introduce more flexible loan terms for SMEs, including lower interest rates, extended repayment periods, and reduced collateral requirements. Many businesses, particularly those in rural and remote areas, have faced difficulties accessing traditional bank financing. The new provisions aim to ensure that more entrepreneurs, especially those in women-led enterprises and indigenous business ventures, have access to the capital needed to grow their operations.
Business leaders and industry experts have welcomed the bill, stating that increased financial accessibility will stimulate private sector growth, encourage entrepreneurship, and create new employment opportunities. Analysts predict that improved access to funding will drive innovation, strengthen Fiji’s business sector, and contribute to long-term economic resilience.
The bill is currently under parliamentary review, with discussions expected to continue over the coming months. If passed, it will mark a significant step towards creating a more dynamic and inclusive financial system that supports Fiji’s growing SME sector.
