Applications for more than FJ$46 million in government grants have highlighted the scale of demand for business capital in Fiji and prompted calls for more sustainable ways of financing the country’s MSME sector.
Fiji’s micro, small and medium enterprises sought more than FJ$46 million in government grant assistance during the last financial year, but only about FJ$6 million in applications were approved.
The figures highlight the financing challenge confronting a sector the Government wants to expand substantially over coming years.
Deputy Prime Minister and Minister for Industries, Commerce, Business Development and Public Enterprises Manoa Kamikamica told Parliament that the Ministry received 6,305 applications seeking FJ$46.2 million in assistance.
A total of 1,806 applications valued at close to FJ$6 million were eventually approved following assessment and due diligence.
The Ministry itself had FJ$4.9 million allocated to grant programmes.
Kamikamica said the response demonstrated strong demand for government assistance, but also showed why businesses could not depend indefinitely on grants as their primary source of capital.
“There is an even greater need for us to develop alternative and sustainable financing mechanisms so that MSMEs do not become dependent on government grants as their only source of capital,” he said.
The Government has allocated FJ$147 million for MSMEs and related initiatives in the 2026–27 Budget.
It has also set an ambitious goal of increasing the sector’s economic contribution from around 18 per cent of GDP to 40 per cent.
A peer-to-peer lending platform is expected to be launched in December as part of efforts to widen financing options.
The funding gap is important because small businesses dominate much of Fiji’s domestic commercial activity and play an important role in employment, regional development and supply chains.
For many firms, relatively small amounts of capital can finance equipment, stock, technology or expansion.
However, conventional bank lending can remain difficult for businesses without substantial assets or a long credit history.
The figures therefore underline the need for a broader financing ecosystem combining banks, development finance, private investment, peer-to-peer lending and carefully targeted government assistance.
If Fiji wants MSMEs to almost double their contribution to the economy, access to growth capital will be central to achieving that objective.
