The Access to Business Funding Bill is expected to receive approval next week, as announced in Parliament by Deputy Prime Minister and Minister for Trade Manoa Kamikamica. He identified access to finance as a significant challenge faced by micro, small, and medium enterprises (MSMEs) and cooperatives, emphasizing the government’s commitment to addressing these barriers through legislative action.
Kamikamica reiterated the importance of the cooperative sector, particularly its role in economic empowerment, especially in rural areas populated by indigenous Taukei communities. The United Nations has designated 2025 as the International Year of Co-operatives, reinforcing the cooperative model as a sustainable means for economic and social development. The government plans to modernize the legal and policy framework pertaining to cooperatives, including amendments to the Co-operatives Act this year.
Additionally, a new grant program—the Cooperative Development Fund, which received parliamentary approval—has been initiated and is gaining popularity among cooperatives. This reflects ongoing efforts to support the growth of these crucial entities.
Previous public consultations highlighted that many SMEs in Fiji encounter difficulties accessing traditional financing due to lacking a solid revenue stream, credit history, or collateral. This situation creates a considerable funding gap that the government aims to bridge through alternative financing solutions, which include small-offer regimes and investment-geared crowdfunding, such as equity crowdfunding and peer-to-peer lending.
As this bill moves forward, it signifies not only a legislative response to the pressing financing challenges faced by MSMEs but also a proactive approach towards creating a more inclusive financial landscape. This initiative could pave the way for sustainable economic growth and enhanced resilience within Fiji’s economy, ultimately benefiting a wider section of the community and fostering a more robust entrepreneurial environment.
Leave a comment