The Access to Business Funding Bill is set for approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation aims to tackle the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue recognized on both local and international levels.
Kamikamica noted the pressing need for improved access to finance, particularly in rural areas where cooperatives have been effective, notably among the indigenous Taukei communities. The initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the crucial role of cooperative models in promoting sustainable economic development and social advancement.
Additionally, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. The newly established Cooperative Development Fund, recently approved by Parliament, aims to bolster the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed that many SMEs face significant obstacles in accessing traditional financing due to issues such as inadequate credit histories or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates equity capital raising and 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 about its potential to create a more inclusive financial environment in Fiji. This initiative could empower entrepreneurs and stimulate local economic growth, leading to significant benefits for the wider community and enhancing the resilience of Fiji’s economy. The government’s proactive approach demonstrates a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, this legislative effort could play a vital role in shaping a brighter economic future for Fiji by addressing the current challenges faced by the MSME sector and promoting greater financial inclusion.
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