The Access to Business Funding Bill is expected to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This significant piece of legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern acknowledged both locally and globally.
Kamikamica highlighted the critical need for enhanced access to finance, especially in rural areas where cooperatives have shown remarkable success, particularly among the indigenous Taukei population. This initiative is aligned with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models in fostering sustainable economic development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. Additionally, the Cooperative Development Fund recently approved by Parliament aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this vital sector.
Earlier public consultations revealed that many SMEs struggle with accessing traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates equity capital raising and investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves towards approval, there is increasing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could have far-reaching positive effects for the wider community and enhance the resilience of Fiji’s economy. The government’s proactive approach illustrates a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This bill not only aims to strengthen the financial landscape but also holds the promise of fostering a more equitable business environment, empowering local entrepreneurs and driving economic progress across the country.
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