The Access to Business Funding Bill is anticipated to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation is designed to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues recognized both nationally and internationally.
Kamikamica stressed the essential need for improved access to finance, particularly in rural areas where cooperatives have been notably effective, especially among the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential of cooperative models to facilitate sustainable development and social progress.
To further support the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently established Cooperative Development Fund aims to significantly enhance the operational capacities of cooperatives, reinforcing the government’s commitment to strengthening this crucial sector of the economy.
Public consultations earlier this year revealed that many SMEs face significant barriers when trying to access traditional financing options, often due to inadequate revenue histories, credit ratings, or collateral. This has created a substantial funding gap, which the Access to Business Funding Bill seeks to bridge through innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves towards approval, there is growing optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative has the potential to benefit the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures, as reflected in this legislation, indicate a hopeful commitment to foster a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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