The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This vital legislation aims to tackle the financial obstacles that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue recognized both locally and globally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the crucial role cooperative models can play in fostering sustainable development and social progress.
The Fijian government plans to modernize the legal framework for cooperatives, with amendments to the Co-operatives Act expected later this year. Additionally, the newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this vital economic sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, along with provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is growing optimism regarding its potential to foster a more inclusive financial environment in Fiji. Empowering entrepreneurs and stimulating local economic growth, this initiative promises significant benefits for the wider community and aims to enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
The approach taken by the Fijian government represents a crucial step towards improving financial accessibility and creating opportunities for many, fostering an environment conducive to growth and innovation in the local economy.
Leave a comment