The Access to Business Funding Bill is anticipated to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant piece of legislation targets the financial difficulties faced by micro, small, and medium enterprises (MSMEs) and cooperatives, challenges that are recognized both locally and globally.
Kamikamica emphasized that improving access to finance is crucial for economic empowerment, particularly in rural areas where cooperatives operate effectively, especially among the indigenous Taukei communities. This initiative is aligned with the United Nations’ designation of 2025 as the International Year of Cooperatives, which spotlights the role of cooperative structures in promoting sustainable development and social progress.
To further support this sector, the Fijian government plans to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act scheduled for this year. Furthermore, the newly approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to bolstering this vital economic sector.
Public consultations conducted earlier this year revealed that many SMEs encounter obstacles in securing traditional financing due to inadequate revenue streams, insufficient credit histories, or lack of collateral, which creates a significant funding gap. The Access to Business Funding Bill seeks to address these pressing challenges by introducing innovative financing solutions, including a small-offer regime to simplify the process for companies to raise equity capital, as well as facilitating investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is growing optimism that it will pave the way for a more inclusive financial landscape in Fiji. This initiative holds the potential to empower entrepreneurs, spur local economic growth, and ultimately benefit the broader community, enhancing the resilience of Fiji’s economy. The government’s proactive approach to reforming access to finance represents a hopeful step toward nurturing a thriving entrepreneurial ecosystem capable of sustaining long-term economic growth and development.
This legislative development not only addresses immediate financial barriers but also lays a robust foundation for sustainable economic empowerment in Fiji.
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