The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent session in Parliament. This transformative legislation is designed to address the financial obstacles encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that has been widely acknowledged both locally and internationally.
Kamikamica emphasized the pressing need for better access to finance, particularly in rural areas where cooperatives have demonstrated significant effectiveness, especially within the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the vital role that cooperative models can play in promoting sustainable economic growth and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. A newly established Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capacities of cooperatives, demonstrating the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs face significant hurdles when accessing traditional financing options due to inadequate revenue histories, credit ratings, or collateral, leading to a noticeable funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing mechanisms, including a small-offer regime that will facilitate easier equity capital raising for private companies and provisions for investment-driven options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, optimism is growing regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield considerable positive effects for the broader community and enhance Fiji’s economic resilience. The proactive measures included in this legislation reflect a hopeful commitment from the government to nurture a dynamic entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
This legislation not only addresses immediate financial challenges but also lays the groundwork for a more robust economic future. By prioritizing MSMEs and cooperatives, the government is setting the stage for a more equitable and prosperous society in Fiji.
Leave a comment