The Access to Business Funding Bill is expected to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica. This significant legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue recognized as critical both globally and within Fiji.
Kamikamica highlighted that improving access to finance is essential for economic empowerment, especially in rural regions where cooperatives have shown their effectiveness, particularly among the indigenous Taukei communities. Notably, the United Nations has designated 2025 as the International Year of Cooperatives, emphasizing the importance of sustainable cooperative models for economic development and social progress.
The government is looking to modernize the legal framework for cooperatives by amending the Co-operatives Act this year, further illustrating their commitment to enhancing the sector. The Cooperative Development Fund, which has recently gained parliamentary approval, is expected to support the operational capacity of cooperatives and ensure their growth.
Recent public consultations have indicated that many SMEs in Fiji encounter considerable obstacles in accessing traditional financing due to the absence of established revenue streams, credit histories, or collateral. This situation has created a noticeable funding gap, which the Access to Business Funding Bill aims to address through innovative financing options, including a small-offer regime that allows private companies to raise equity capital more easily, as well as investment-geared crowdfunding avenues like equity crowdfunding and peer-to-peer lending.
As the bill moves toward approval, there remains optimism that it will cultivate a more inclusive financial environment, empowering entrepreneurs and fostering local economic growth. This initiative not only seeks to resolve immediate financial barriers but may also create a thriving ecosystem that benefits the broader community and enhances the overall resilience of Fiji’s economy. With the government’s proactive steps, there is hope for sustained economic growth that could positively transform the financial landscape for MSMEs and cooperatives across the nation.
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