The Access to Business Funding Bill is anticipated to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This critical piece of legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, issues that Kamikamica highlighted as pressing both locally and globally.
Kamikamica emphasized that enhancing access to finance is vital for economic empowerment, especially in rural areas where cooperatives have historically been effective, particularly among the indigenous Taukei communities. This legislative move is timely, coinciding with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which underscores the cooperative model’s potential for sustainable economic growth and social progress.
The government is also planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the newly approved Cooperative Development Fund aims to support cooperatives’ operational capacity, reflecting the government’s commitment to bolstering economic resilience through innovative financing solutions.
Recent public consultations revealed that many SMEs in Fiji encounter significant barriers in accessing traditional financing due to a lack of established revenue streams, credit histories, or adequate collateral. This situation has created a considerable funding gap, which the Access to Business Funding Bill seeks to bridge through alternative financing options. The bill proposes the introduction of a small-offer regime that would allow private companies to raise equity capital more easily, along with facilitating investment-geared crowdfunding methods such as equity crowdfunding and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there remains optimism that these innovative measures will foster a more inclusive financial landscape in Fiji, empowering entrepreneurs and promoting local economic growth. By addressing immediate financial barriers, this initiative has the potential to create a dynamic entrepreneurial ecosystem that will ultimately benefit the wider community and enhance the overall resilience of Fiji’s economy.
With proactive steps being taken to improve access to finance for MSMEs and cooperatives, there is a sense of hope that these changes will lead to a thriving economic environment. The emphasis on cooperative models and alternative funding solutions could significantly transform the business landscape in Fiji, paving the way for sustained economic growth and opportunity for all citizens.
Leave a comment