The Access to Business Funding Bill is on the verge of receiving parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This pivotal legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives throughout Fiji, a concern that has garnered both national and international attention.
Kamikamica underscored the urgent need for improved access to finance, particularly in rural areas where cooperatives have historically proven effective, especially within the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the importance of cooperative models in fostering sustainable economic growth and social progress.
In support of the cooperative sector, the Fijian government plans to modernize the existing legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act to be proposed this year. Additionally, the recently established Cooperative Development Fund, which Parliament has approved, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed significant obstacles faced by many SMEs in accessing traditional financing due to barriers like inadequate revenue histories, credit ratings, or collateral. These challenges contribute to a noticeable funding gap that the Access to Business Funding Bill aims to bridge through innovative financing solutions. Key provisions include a small-offer regime that facilitates equity capital raising, as well as options for investment-driven crowdfunding such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, there is growing optimism that it will lead to a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to considerable benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures taken by the government signal a hopeful commitment to building a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Through these initiatives, the Fijian government demonstrates its dedication to addressing the financial barriers faced by MSMEs and cooperatives, ensuring a more equitable and prosperous future for all citizens.
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