When my late mother started her floral business during the COVID-19 pandemic, she relied entirely on personal savings. Accessing a small business loan was difficult, and the cost of borrowing often prohibitive. Her experience reflects the reality faced by many entrepreneurs across Fiji, where accessing affordable finance remains one of the biggest challenges to starting and growing a business.

Micro, Small and Medium Enterprises (MSMEs) contribute approximately 18 percent of Fiji’s GDP and account for around 60 percent of employment. Despite their vital role in the economy, many businesses struggle to secure funding through traditional banking channels. Recognising this gap, the Government, in partnership with the Reserve Bank of Fiji and the Asian Development Bank’s Private Sector Development Initiative, introduced the Access to Business Funding Act 2025.

Why This Reform Matters

The Act creates new pathways for businesses to raise capital and for ordinary Fijians to participate in investment opportunities. It is designed to complement traditional lending by providing alternative financing options that are more accessible, flexible and inclusive.

The legislation introduces three fundraising mechanisms:

• Small Offers
• Peer-to-Peer Lending (P2PL)
• Equity Crowdfunding (ECF)

While these models are widely used internationally, Fiji is the first Pacific Island country to establish a dedicated framework to support them.

A Pacific First in Alternative Finance

The reform builds on Fiji’s strong record of financial sector innovation. Its implementation follows a phased approach, with Small Offers already operational while Peer-to-Peer Lending and Equity Crowdfunding frameworks are being developed.

Importantly, the Act formalises a concept already familiar to many Fijians. The tradition of solesolevaki—collaborating and pooling resources for a shared purpose—has long been a foundation for community projects, education and small enterprises. The new framework harnesses this spirit of collective support for business financing, establishing modern and regulated avenues for individuals to invest in ideas and enterprises they are passionate about.

Expanding Financial Inclusion

More than 80 percent of registered businesses in Fiji are MSMEs. Yet many remain underserved by traditional financing systems.

The Access to Business Funding Act helps addresses this challenge by:

• Expanding financing options beyond conventional bank loans.
• Reducing administrative barriers for businesses seeking funding.
• Leveraging digital platforms to reach entrepreneurs in rural and maritime communities.
• Creating opportunities for everyday Fijians to invest small amounts in local businesses.

By widening access to both finance and investment opportunities, this reform strengthens not only financial inclusion but also promotes long-term financial wellbeing.

A Phased Approach to Sustainable Growth

The sequencing of the reform has been deliberate.

Small Offers serve as an immediate solution to address the significant financing gap faced by growing businesses. Peer-to-Peer Lending will follow, offering a familiar debt-financing model that many MSMEs may find easier to adopt compared to equity financing.

Fiji is well positioned to support these new financing channels. Recent reforms to secured transactions and payment systems have strengthened the underlying infrastructure required for digital lending and investment platforms to operate efficiently and securely.

International experience, particularly from Malaysia, has also informed Fiji’s approach, ensuring lessons from established markets are incorporated while safeguarding local investors and businesses.

What Comes Next

The next phase of implementation is already underway. Draft regulations for Peer-to-Peer Lending and Equity Crowdfunding have been discussed with stakeholders, and local fintech start-up ThirdRoc has been selected to develop Fiji’s inaugural Peer-to-Peer Lending platform.

The goal is to establish safe, trusted and well-regulated alternative financing channels that can foster entrepreneurship, innovation and business growth across Fiji.

Conclusion: Turning Aspiration into Opportunity

The Access to Business Funding Act 2025 represents more than just a reform of the financial sector; it is a tangible step toward a more inclusive economy. This initiative aims to provide businesses with improved access to capital, offer investors more opportunities to engage in growth, and ensure that entrepreneurial ambition is no longer constrained by limited financing options.

For many aspiring business owners, like my late mother, this reform presents a significant opportunity: the chance to transform ideas into thriving enterprises, and aspirations into sustainable livelihoods.