The Access to Business Funding Bill is set to receive approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This important legislation addresses the significant financial challenges confronted by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both locally and internationally.
During a recent parliamentary session, Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives have been notably effective, especially among indigenous Taukei communities. The initiative also aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, reinforcing the importance of cooperative models in promoting sustainable economic 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 expected this year. A newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, further underscoring the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs face considerable barriers in accessing traditional financing due to factors such as inadequate revenue histories, credit ratings, or collateral, which contribute to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative solutions, including a small-offer regime that facilitates equitable capital raising for private companies and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, there is an increasing sense of optimism 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 while also enhancing the resilience of Fiji’s economy. The proactive measures outlined in the legislation represent a hopeful commitment from the government to cultivate a vibrant entrepreneurial landscape capable of supporting long-term growth and development throughout the nation.
Leave a comment