The Access to Business Funding Bill is expected to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This essential legislation aims to tackle the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a pressing issue recognized on both local and international stages.
Kamikamica emphasized the critical need for enhanced access to finance, particularly in rural regions where cooperatives are known to be effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the role cooperative models can play in promoting sustainable economic growth and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the newly established Cooperative Development Fund, which has received parliamentary approval, aims to bolster the operational capabilities of cooperatives, reflecting the government’s commitment to strengthening this vital sector.
Recent public consultations highlighted the barriers that many SMEs encounter when trying to access traditional financing options, such as insufficient revenue histories, credit ratings, or collateral, which contribute to a significant funding gap. The Access to Business Funding Bill seeks to address these challenges through innovative financing solutions, including a small-offer regime designed to facilitate private companies in raising equity capital more easily and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing sense of optimism about its potential to foster a more inclusive financial environment in Fiji. Empowering entrepreneurs and stimulating local economic growth could lead to significant positive outcomes for the broader community, thereby enhancing the resilience of Fiji’s economy. This proactive initiative is a hopeful sign that the government is committed to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
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