The Access to Business Funding Bill is expected to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This significant legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural regions where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential role that cooperative models can play in promoting sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the Cooperative Development Fund, which has recently received parliamentary approval, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this important sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, which has resulted in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is a growing sense of optimism about its potential to 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 resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation reflects an understanding of the vital role that SMEs and cooperatives play in economic empowerment, especially in rural settings, and could pave the way for more sustainable economic practices in Fiji.
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