The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliament session. This crucial legislation aims to confront the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues recognized both locally and globally.
Kamikamica highlighted the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ announcement designating 2025 as the International Year of Cooperatives, underscoring the valuable role cooperative models can play in fostering sustainable economic development and social progress.
To further reinforce the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be proposed this year. Additionally, the recently established Cooperative Development Fund, approved by Parliament, aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this vital sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs face significant barriers in accessing traditional financing due to factors like insufficient revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill is designed to bridge this gap through innovative financing solutions, including a small-offer regime that simplifies the raising of equity capital for private companies. It also includes provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, optimism is growing regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The proactive measures encompassed in this legislation reflect a hopeful commitment by the Fijian government to foster a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
This bill not only addresses existing financial barriers but also signifies a transformative step toward creating a more equitable economic landscape that can uplift communities and support diverse entrepreneurial endeavors across the country.
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