ADB and Merchant Finance Partner to Boost Access to Finance for Women Entrepreneurs in Fiji

New Loan and Grant Agreement to Empower Women-Owned SMEs and Foster Economic Growth.

The Asian Development Bank (ADB) and Merchant Finance Pte Limited (MFL) have signed loan and grant agreements to enhance financial access for women-owned and led small and medium-sized enterprises (SMEs) in Fiji. The agreement aims to address the financing gap faced by women entrepreneurs, helping them grow their businesses and contribute to the country’s economic development.

The agreement, signed by ADB Director General for Private Sector Operations Suzanne Gaboury and MFL Chief Executive Officer Veilawa Rereiwasaliwa in Manila, includes a local currency loan of $4 million from ADB, along with a supplementary grant from the Women Entrepreneurs' Finance Initiative (We-FI). Notably, 75% of the proceeds will be dedicated specifically to supporting women-led and owned SMEs in Fiji.

A Focus on Empowering Women Entrepreneurs

“Empowering small businesses and women entrepreneurs is crucial for fostering inclusive and sustainable economic growth,” said Bhargav Dasgupta, ADB Vice-President for Market Solutions. “This partnership will help bridge the financial gap faced by women-owned SMEs in Fiji, enabling them to contribute to the country’s economic development.”

In addition to the financial support, MFL’s collaboration with ADB aims to tackle the barriers preventing women-led businesses from reaching their potential. These barriers include limited access to collateral, financial literacy gaps, cultural bias, and the lack of gender-sensitive financial products.

“We are committed to supporting women’s SMEs to enable them to access the finance they need to grow and thrive,” said Veilawa Rereiwasaliwa, CEO of MFL. “This collaboration is a significant step toward promoting gender equality and economic growth in Fiji.”

Challenges Facing SMEs in Fiji

Small and medium-sized enterprises are the backbone of Fiji’s economy, accounting for approximately 90% of all businesses in the country. Despite their importance, many SMEs, especially those led by women, face substantial challenges when it comes to accessing finance. Women entrepreneurs in Fiji often encounter difficulties such as limited access to collateral, lack of financial education, and inadequate networks, alongside broader issues such as gender bias and cultural barriers. These factors have hindered the growth and potential of women-led SMEs.

The agreement will also help address these systemic challenges, enabling greater financial inclusion for women in the Fijian business landscape.

Merchant Finance: A Leading Institution in Fiji

MFL, which was established in 1986 and is the largest of three non-bank licensed credit institutions in Fiji, has played a key role in supporting the local economy. With multiple branches in Suva, Lautoka, Labasa, and Nadi, MFL will leverage its extensive network to extend tailored financial products to women entrepreneurs.

Through this partnership with ADB, MFL aims to not only support women-led SMEs but also contribute to the economic empowerment of women, which is a crucial driver of sustainable development in Fiji.

Supporting Economic Growth and Gender Equality

The partnership between ADB and MFL highlights the importance of gender-focused financial initiatives in achieving broader economic goals. By empowering women entrepreneurs, this collaboration seeks to promote gender equality, foster economic development, and create lasting positive changes for women and their communities.

With continued efforts from both the private and public sectors, the initiative promises to reduce the barriers women entrepreneurs face, providing them with the necessary tools and resources to succeed and contribute to Fiji’s long-term economic growth.