The Access to Business Funding Bill is expected to be approved next week, as announced in Parliament by Deputy Prime Minister and Minister for Trade Manoa Kamikamica. This legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, which Kamikamica highlighted as pressing issues both globally and within Fiji.
In his remarks, Kamikamica emphasized the crucial role of accessibility to finance for economic empowerment, particularly in rural areas where cooperatives have proven effective. He noted that the United Nations has declared 2025 as the International Year of Co-operatives, bringing further attention to the cooperative model as a sustainable means for economic growth and social progress. The Fijian government plans to modernize the legal framework governing cooperatives, including anticipated amendments to the Co-operatives Act this year.
Additional initiatives include the recently launched Cooperative Development Fund, which has already garnered parliamentary approval. This fund aims to support the operational capacity of cooperatives, fostering economic resilience through innovative financing solutions.
Public consultations earlier this year revealed that many MSMEs encounter barriers in accessing traditional financing due to the absence of established revenue streams, credit histories, or collateral. As a response to these challenges, the Access to Business Funding Bill proposes alternative financing options, such as a small-offer regime for raising equity capital and investment-geared crowdfunding mechanisms like equity crowdfunding and peer-to-peer lending.
The introduction of this bill is a proactive step toward creating a more inclusive financial landscape in Fiji, which is expected to not only empower individual businesses but also contribute to the overall economic resilience of the country. As the legislation progresses, there is hope that these measures will facilitate sustainable economic growth, supporting local entrepreneurs and benefiting the wider community, ultimately enhancing the prosperity of Fiji’s economy.
This initiative signifies a commitment to improving access to finance for MSMEs and cooperatives, paving the way for a brighter economic future.
Leave a comment