The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This critical piece of legislation aims to address the significant financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, issues recognized both locally and globally.
Kamikamica emphasized the pressing need for better access to finance, especially in rural areas, where cooperatives have proven effective, particularly among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underlining the importance of cooperative models in promoting sustainable development and social advancement.
To strengthen the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. The newly established Cooperative Development Fund, which has recently received parliamentary approval, aims to bolster the operational capacities of cooperatives, showcasing the government’s commitment to supporting this vital sector of the economy.
Public consultations have revealed that many SMEs are struggling to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates easier equity capital raising, as well as provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Optimism is growing as the bill progresses towards approval, with expectations that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
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