The Access to Business Funding Bill is poised for approval next week, according to Deputy Prime Minister and Minister for Trade Manoa Kamikamica, who made the announcement during a parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues recognized both in the local context and internationally.
Kamikamica highlighted that access to finance is critical for economic empowerment, particularly in rural areas where cooperatives, especially among the indigenous Taukei community, have proven effective. The initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the role of cooperative structures in promoting sustainable development and social advancement.
To strengthen the cooperative sector, the Fijian government is also planning to modernize the legal framework governing cooperatives with amendments to the Co-operatives Act expected this year. Additionally, a newly established Cooperative Development Fund has recently received parliamentary approval, aimed at significantly enhancing the operational capabilities of cooperatives, showcasing the government’s dedication to bolstering this vital sector.
Public consultations held earlier this year revealed that numerous SMEs face barriers in accessing traditional financing due to factors such as insufficient revenue histories, credit ratings, or collateral, creating a considerable funding gap. The Access to Business Funding Bill aims to bridge this gap by facilitating innovative financing options, including a small-offer regime that enables private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is optimism that it will foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative holds the potential to benefit the broader community and enhance the resilience of Fiji’s economy. The commitment to reforming access to finance reflects a hopeful outlook for the future of MSMEs and cooperatives in Fiji, paving the way for a robust entrepreneurial ecosystem capable of sustaining long-term growth and development.
This legislative effort represents a significant step toward addressing the financial needs of the MSME sector, potentially unlocking transformative economic opportunities for many communities across the nation.
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