The Access to Business Funding Bill is set to be approved next week, as noted by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This important legislation aims to alleviate the financial challenges facing micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern prevalent both locally and globally.
Kamikamica emphasized the urgent necessity for enhanced access to finance, particularly in rural areas where cooperatives have effectively empowered the indigenous Taukei communities. The initiative aligns with the United Nations’ proclamation of 2025 as the International Year of Cooperatives, which underscores the crucial role that cooperative models play in sustainable economic growth and social progress.
To support this vital sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. In tandem, a newly established Cooperative Development Fund, recently approved by Parliament, is expected to improve the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential area of the economy.
Public consultations conducted earlier this year revealed that many SMEs encounter significant barriers in accessing traditional financing due to factors such as insufficient revenue histories, credit ratings, or collateral, creating a substantial funding gap. The Access to Business Funding Bill intends to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates easier equity capital raising for private companies and provisions for investment-driven crowdfunding options, namely equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and facilitating local economic growth, this initiative could yield vital benefits for the broader community and bolster the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
Overall, the Access to Business Funding Bill signifies a pivotal step forward for Fiji’s MSMEs, which could significantly enhance their access to the capital necessary for sustained success and expansion. This promising development heralds a new horizon for economic empowerment in the region.
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