The Access to Business Funding Bill is anticipated to be approved by next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. During a recent parliamentary session, he highlighted the significance of this legislation in addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which are issues recognized both locally and globally.
Kamikamica pointed out the pressing need for improved access to finance, particularly in rural areas where cooperatives have historically been effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of these cooperative models to foster sustainable development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize existing regulations governing cooperatives, with amendments to the Co-operatives Act expected to be proposed later this year. Recently approved, the Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, highlighting the government’s commitment to bolstering this essential sector of the economy.
Public consultations held earlier this year revealed significant barriers preventing many SMEs from accessing traditional financing options, such as inadequate revenue histories, credit ratings, or collateral. Consequently, a considerable funding gap exists, which the Access to Business Funding Bill aims to bridge through various innovative financing solutions. These include a small-offer regime to facilitate easier equity capital raising for private companies, as well as provisions for investment-driven options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances, there is growing optimism regarding its potential to cultivate a more inclusive financial landscape in Fiji. By empowering entrepreneurs and encouraging local economic growth, this initiative stands to produce significant positive impacts for the broader community, ultimately enhancing the resilience of Fiji’s economy. The proactive governmental efforts reflected in this legislation signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem, capable of supporting sustained growth and development throughout the nation.
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