The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This essential legislation aims to tackle the financial challenges facing micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that has garnered attention both locally and internationally.
Kamikamica highlighted the critical importance of improving access to finance, particularly in rural areas where cooperatives have proven effective, especially for the indigenous Taukei population. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, showcasing the potential of cooperative models for fostering sustainable development and social progress.
As part of its efforts, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the newly established Cooperative Development Fund, which recently received parliamentary approval, aims to significantly enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to supporting this vital sector of the economy.
Public consultations revealed that many SMEs face significant obstacles in accessing traditional financing options, often due to inadequate revenue histories, credit ratings, or a lack of collateral. This has resulted in a substantial funding gap, which the Access to Business Funding Bill aims to address through innovative financial solutions. These include a small-offer regime facilitating the raising of equity capital for private companies, as well as provisions for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses, there is growing optimism that it will promote a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to greatly benefit the community and enhance the resilience of Fiji’s economy. The government’s proactive approach is a positive indication of its commitment to fostering a vibrant entrepreneurial ecosystem that can sustain long-term development and prosperity throughout the nation.
This legislation represents a hopeful step forward for the financial landscape in Fiji, especially for those who have historically struggled to access the necessary funds to grow their businesses.
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