The Access to Business Funding Bill is expected to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation aims to tackle the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, problems acknowledged both locally and internationally.
Kamikamica stressed the urgent need for better access to finance, particularly in rural areas where cooperatives have proven their value, especially among the indigenous Taukei communities. The bill aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, highlighting the potential of cooperative models in fostering sustainable development and societal advancement.
To enhance the cooperative sector, the Fijian government intends to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund has received parliamentary approval to bolster the operational capabilities of cooperatives, reflecting the government’s commitment to this vital sector.
Earlier public consultations indicated that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a noticeable funding gap. The Access to Business Funding Bill seeks to address these challenges by providing innovative financing solutions, including a small-offer regime allowing private companies to raise equity capital more easily, as well as options for investment-driven crowdfunding like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances towards approval, optimism is growing regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could have far-reaching positive impacts on the broader community and enhance the resilience of Fiji’s economy. The government’s proactive approach signifies a hopeful commitment to establish a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
Overall, this legislation reflects significant progress towards improving financial access for marginalized sectors, which could pave the way for a more resilient economy and greater community empowerment in Fiji.
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