The Access to Business Funding Bill is set to receive parliamentary approval as early as next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This crucial legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
During his address, Kamikamica emphasized the pressing need for improved access to finance, particularly for cooperatives that have proven effective in rural regions among indigenous Taukei communities. The government’s efforts align with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, highlighting the critical role that cooperative models can play in fostering sustainable economic development and social progress.
As part of the government’s initiative, plans are underway to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. The recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed common barriers faced by SMEs in accessing traditional financing, stemming from inadequate revenue histories, poor credit ratings, or lack of collateral. This has resulted in a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism about its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises substantial benefits for the broader community, ultimately enhancing the resilience of Fiji’s economy. The proactive measures taken by the government reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustainable growth and development throughout the nation.
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