The Access to Business Funding Bill is set for approval in the coming week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation seeks to address the financial difficulties faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue recognized as a critical challenge not only within Fiji but globally.
Kamikamica underscored the necessity of improving access to finance for economic empowerment, especially in rural areas where cooperatives have proven effective, particularly for the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the cooperative model’s potential to foster sustainable economic growth and social development.
The Fijian government plans to modernize the legal structure governing cooperatives, with amendments to the Co-operatives Act expected this year. A recently approved Cooperative Development Fund aims to enhance the operational capacity of cooperatives, showcasing the government’s commitment to bolstering economic resilience in the sector.
Public consultations held earlier this year highlighted that many SMEs grapple with accessing traditional financing methods due to reasons such as insufficient revenue histories, lack of credit scores, or collateral requirements, creating a notable funding gap. The Access to Business Funding Bill seeks to close this gap through the introduction of innovative financing solutions, including a small-offer regime that will allow companies to easily raise equity capital and provisions for investment-geared crowdfunding methods like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is optimism that it will cultivate a more inclusive financial environment, empowering entrepreneurs and facilitating local economic development. This legislative move represents a hopeful advancement for MSMEs and cooperatives, indicating a commitment to creating a supportive ecosystem that contributes to the overall resilience and vitality of Fiji’s economy.
The successful implementation of this bill is anticipated to provide much-needed support to local businesses, ultimately benefiting communities throughout the nation and paving the way for a brighter economic future.
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