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 recent parliamentary session. This crucial legislation aims to alleviate the financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized at both local and international levels.
Kamikamica underscored the pressing need for enhanced access to finance, particularly in rural regions where cooperatives have shown considerable effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the vital role cooperatives can play in promoting sustainable economic development.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. A new Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate credit histories or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to address these challenges by introducing innovative financing solutions. These include a small-offer regime that facilitates private companies in raising equity capital and investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward 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 lead to significant positive changes for the broader community and enhance the resilience of Fiji’s economy. The proactive measures embodied in this legislation reflect the government’s hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
This development offers a promising outlook for the future of MSMEs and cooperatives in Fiji, positioning the country to better meet economic challenges and foster a robust support system for local businesses.
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