The Access to Business Funding Bill is set to be approved by the Fijian Parliament next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This significant legislation aims to address the financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges recognized both locally and internationally.
During a recent parliamentary session, Kamikamica highlighted the urgent need for enhanced access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative is timely as the United Nations has declared 2025 as the International Year of Cooperatives, which emphasizes the positive impact cooperative models can have on sustainable economic development and social progress.
The government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Cooperatives Act later this year. A newly established Cooperative Development Fund, recently approved by Parliament, aims to reinforce the operational capabilities of cooperatives, showcasing the government’s dedication to this vital sector.
Public consultations held earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, inadequate credit ratings, or lack of collateral. This situation has created a substantial funding gap that the Access to Business Funding Bill seeks to bridge through innovative financing solutions. These solutions include a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves towards approval, there is a sense of optimism about its potential to foster a more inclusive financial environment in Fiji. This initiative aims to empower entrepreneurs and stimulate local economic growth, potentially leading to significant benefits for the wider community and enhancing the resilience of Fiji’s economy. The government’s proactive steps reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem that can support sustained growth and development throughout the nation.
This legislative approach marks a positive step forward for Fiji’s economy, illustrating a commitment to inclusive financial practices that can significantly bolster the growth of local enterprises and cooperatives.
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