Fiji is taking significant steps to enhance financial accessibility for micro, small, and medium enterprises (MSMEs) through the introduction of a Request for Proposal (RFP) aimed at creating the country’s first peer-to-peer (P2P) lending platform. Esrom Immanuel, the Minister for Finance, Commerce, and Business Development, unveiled this initiative, emphasizing its role in establishing a sustainable and transparent lending ecosystem that addresses the long-standing financing challenges faced by MSMEs.
Minister Immanuel expressed optimism that the P2P platform will provide a commercially viable lending alternative. He stated that the RFP marks the beginning of a transparent process to identify the best candidate to develop this innovative financial tool. This initiative is particularly crucial for MSMEs located beyond conventional banking hubs or in sectors often overlooked by traditional financial institutions.
Ariff Ali, Governor of the Reserve Bank of Fiji, reaffirmed the primary objective of the platform: to expand financial access for MSMEs. He pointed out that numerous small enterprises struggle to secure funding through existing channels, especially those situated outside the standard banking framework. The RFP is scheduled to remain open for seven weeks, concluding in mid-March, with candidate selection expected on March 27.
This initiative has been lauded by Governor Ali as a landmark development for Fiji’s financial sector, indicating that the P2P lending model could significantly diversify financing options available to businesses beyond the historical confines of stock markets and banks. Emily Wilson, the Acting Counsellor for Economic and Development Cooperation at the Australian High Commission, highlighted the crucial role of MSMEs in Fiji’s economy and community, especially in key sectors like tourism, agriculture, fisheries, and services.
Once the P2P lending platform becomes operational, it is expected to create opportunities for individual and institutional investors to connect with small businesses seeking capital, which could lead to reduced borrowing costs and improved funding access. For MSMEs, this represents a hopeful avenue for growth, innovation, and recovery, particularly within regional and rural communities, and reinforces the essential contributions these enterprises make to the overall economy of Fiji.