The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This vital piece of legislation aims to tackle the financial hurdles that micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji face, issues recognized both locally and globally.
Kamikamica stressed the urgent need for improved financial access, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei communities. The bill aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the pivotal role of cooperative models in fostering sustainable development and social progress.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework with anticipated amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund has been approved by Parliament, aimed at boosting the operational capabilities of cooperatives and highlighting the government’s commitment to this crucial sector.
Recent public consultations revealed significant challenges that SMEs encounter when seeking traditional financing, primarily due to inadequate revenue histories, credit ratings, and collateral. This has resulted in a notable funding gap that the Access to Business Funding Bill aims to fill through innovative financing methods. The legislation proposes a small-offer regime to facilitate equity capital raising and includes provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, optimism is growing regarding its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could provide substantial benefits to the wider community and enhance the resilience of Fiji’s economy. Such proactive measures indicate a hopeful commitment from the government to nurture an entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Summary: The Access to Business Funding Bill is poised for parliamentary approval, intending to address financial challenges faced by MSMEs and cooperatives in Fiji. The legislation emphasizes improving access to finance, especially in rural areas, modernizing cooperative laws, and implementing alternative financing solutions. Growing optimism surrounds its potential to create an inclusive financial environment, ultimately fostering economic resilience and community development in Fiji.
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