The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation is intended to address the considerable financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
Kamikamica emphasized the urgent need for enhanced access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which highlights the role of cooperative models in promoting sustainable development and social progress.
To strengthen the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated later this year. A newly established Cooperative Development Fund, recently approved by Parliament, aims to bolster the operational capabilities of cooperatives, reflecting the government’s commitment to this vital sector.
Public consultations held earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit histories, or collateral. This situation has created a notable funding gap, which the Access to Business Funding Bill seeks to address through innovative solutions. These include a small-offer regime that facilitates the raising of equity capital and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, optimism is growing regarding its potential to create a more inclusive financial landscape in Fiji. This initiative aims to empower entrepreneurs and stimulate local economic growth, potentially leading to significant benefits for the broader community and enhanced resilience for Fiji’s economy. The proactive measures within this legislation signify the government’s hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
In summary, the anticipated implementation of this bill promises a brighter financial future for small businesses and cooperatives in Fiji, indicating a promising shift toward economic empowerment and sustainability.
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