Pacific-owned financial institution proposed to unlock affordable finance

Fiji is pushing for a Pacific-owned financial institution to provide affordable finance and keep capital within communities as part of efforts to strengthen cooperatives across the region.

Deputy Prime Minister and Minister for Industries, Commerce, Business Development and Public Enterprises Manoa Kamikamica proposed the establishment of a Pacific Cooperative Savings and Loan institution owned and governed by cooperatives and their members.

He made the call yesterday at the Strengthening Pacific Cooperatives through Education, Training and Regional Cooperation Forum at the Tanoa International Hotel in Nadi.

Mr Kamikamica said access to finance must be a central pillar of the proposed Pacific Islands Cooperative Network (PICON), particularly as rural enterprises and small businesses continued to face barriers to capital.

“If we are serious about revitalising the cooperative movement in the Pacific, then we must also be serious about building financial systems that are designed to serve our people,” he said.

Mr Kamikamica said the proposed institution could mobilise community savings, provide appropriate financial products and help cooperatives, micro, small and medium enterprises and informal businesses grow.

“Most importantly, the capital would remain within our communities and within our cooperative movement, helping our people to finance our own development.”

Deputy Prime Minister and Minister for Industries, Commerce, Business Development and Public Enterprises Manoa Kamikamica (in garland) with the delegates at the Strengthening Pacific Cooperatives through Education, Training and Regional Cooperation Forum at the Tanoa International Hotel in Nadi.

Photo: Katherine Naidu.

He said the proposal was about more than establishing another financial institution.

“It is about creating a financial ecosystem that is owned by the people it serves. It is about putting the principles of cooperation into practice, pooling our resources, sharing our risks, and investing collectively in our future.”

Mr Kamikamica said cooperatives were more than economic entities and could support inclusive growth, poverty reduction and community empowerment.

He said stronger cooperatives could also create opportunities for young people, reduce social exclusion and help address challenges including unemployment, substance abuse and crime.

The minister said Fiji was strengthening its legislative and regulatory framework to ensure cooperatives were well-governed, competitive and innovative.

He also highlighted education and training, regional trade, technology, market access and greater participation by women and young people as key areas for strengthening the cooperative movement.

Mr Kamikamica said PICON could become a driving force for revitalising cooperatives across the Pacific and creating shared economic opportunities.