Fiji Targets Sustainable MSME Support Beyond Grants

Fiji's government is shifting its strategy for supporting Micro, Small, and Medium Enterprises (MSMEs), moving beyond a sole focus on grants to cultivate a more robust ecosystem. Minister for Business Development Manoa Kamikamica explained that the demand for government assistance significantly outweighs available resources, necessitating a more sustainable approach. The ministry's new strategic plan emphasizes a data-driven methodology, supported by the recent launch of an MSME portal.

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We needed to not only focus on providing grants, but rather building a proper ecosystem based on accurate data and a deeper collaboration with private sector and development partners.

Kamikamica stated that the portal will enable the ministry and other government agencies to gather crucial information about MSMEs, including their locations, operations, challenges, and specific support needs. This data-driven approach aims to foster deeper collaboration with the private sector and development partners, creating a more comprehensive support system than grants alone could provide.

However, the opposition has raised concerns, with MP Rinesh Sharma arguing that the government should prioritize reducing cost pressures on small businesses. Sharma urged the government to complement its training initiatives with tax relief, allowing businesses to retain more of their earnings. He also called for a review of the value-added tax (VAT) burden on essential goods and small trader turnover, and for collaboration with local authorities and landlords to prevent young entrepreneurs from being priced out of the market.

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I call on this government to match its training initiatives with tax relief that allows small businesses to keep what it earns, review the vet burden on essential goods and small trader turnover, work with local authorities and landlords so that a young entrepreneur is not priced out before they open the doors

Sharma further highlighted that access to finance is not the only constraint; uncertainty surrounding land leases significantly hinders MSMEs' ability to invest and diversify. He asserted that resolving land lease uncertainty would unlock exponential economic growth for Fiji, fostering investor confidence and generating wealth for Fijians.

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I feel that uncertainty around land leases has held this nation back for decades, Honorable Speaker, and Honorable Speaker, any government, any government who solves the uncertainty around land leases will see Fiji’s economy grow exponentially.