Case Studies

The Pacific Private Sector Development Initiative (PSDI) is working to increase access to finance for micro, small, and medium-sized enterprises (MSMEs) in Fiji through the new Access to Business Funding Act, which introduces innovative financing mechanisms.

Small and medium-sized enterprises (SMEs) require access to finance to start, grow, and operate their businesses. However, accessing finance is difficult for many Pacific MSMEs, which are constrained by credit requirements that are difficult to meet, limited equity financing options, and a perception that small-scale lending is riskier and costly. The resulting financing gap ultimately hinders broader economic growth, job creation, and productivity.

Innovative financing mechanisms, including small offers regimes, peer-to-peer lending, and crowdfunding, can lower barriers and provide more options for Pacific businesses seeking finance and suit the community-based nature of Pacific cultures. Innovative financing mechanisms offer more safeguards and structure than the informal funding through personal networks that is common in the region without the constraints of traditional debt and equity financing, such as long processes and requirements that are difficult to meet.

PSDI worked with the Ministry of Trade, Co-operatives, Small and Medium Enterprises, and Communications and the Reserve Bank of Fiji (RBF) to draft and consult on the Access to Business Funding Act, which was passed by the Government of Fiji in March 2025. The act enables innovative financing options to increase capital access for Fiji’s MSMEs, which are often unable to access traditional forms of finance without formal financial statements, a monetization strategy, credit history, or collateral.

“The Access to Business Funding Act being passed in Parliament is a welcome step towards providing alternative financing options. This will make Fiji a more attractive destination for investment and business, fostering the development and growth for micro, small, and medium enterprises in Fiji," said Deputy Prime Minister and minister for trade, co-operatives, small and medium enterprises and communications, Manoa Kamikamica.

The new act makes Fiji the first country in the Pacific to introduce a comprehensive regulatory framework that can unlock new, innovative financing options for MSMEs while providing the oversight needed to protect investors.

“This law will unlock alternative financing options for MSMEs under the three regimes of small offers, crowdfunding, and peer-to-peer lending. These new and innovative financing platforms are expected to enable affordable and easier access to funding for MSMEs, which will further stimulate growth for the sector and improve contribution to gross domestic product … At around 18%, Fiji’s MSME contribution to gross domestic product is comparatively lower than the 40% for emerging markets economies, a gap we hope this reform can help close," said Ariff Ali, Governor of the RBF.

A new task force, consisting of the Ministry of Trade, Co-operatives, Small and Medium Enterprises, and Communications; the RBF; PSDI; and other key government stakeholders, was established to guide the practical rollout of the act. The first meeting of this implementation task force took place in Suva on 23 May 2025. The task force will support implementation of the act across three work streams:

• Legal and Regulatory: PSDI is assisting the RBF to develop the required regulations and guidance notes, initially for the small offers regime and then for fundraising avenues through an intermediary.
• Intermediary: PSDI is leading this work stream to support the establishment of at least one fintech platform, required for the implementation of peer-to-peer lending and equity crowdfunding.
• Market Development: PSDI is working with the Ministry of Trade, Co-operatives, Small and Medium Enterprises and Communications to engage with key SME training partners to provide information and training materials and ensure both potential fundraisers and potential investors understand the process.

Through the new act, PSDI is helping to reduce the barriers to accessing finance, so that Fijian businesses can grow and help drive economic growth, employment, and productivity.

Representatives from the Pacific Private Sector Development Initiative; the Ministry of Trade, Co-operatives, Small and Medium Enterprises; and the Reserve Bank of Fiji attending the Parliamentary Standing Committee on Economic Affairs to respond to questions on the proposed access to business funding bill.

This case study is taken from the PSDI FY2025 Annual Progress Report. Read the full report here.