The Access to Business Funding Bill is on track for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation aims to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both locally and globally.
Kamikamica emphasized that improved access to finance is crucial for economic empowerment, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the importance of cooperative models in promoting sustainable development and social advancement.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. The Cooperative Development Fund, which has recently gained parliamentary approval, aims to significantly enhance the operational capacities of cooperatives, reflecting the government’s commitment to bolstering this vital sector.
Public consultations revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing options, including a small-offer regime that allows private companies to raise equity capital more effortlessly and provisions for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, optimism grows that it will create a more inclusive financial landscape in Fiji. Empowering entrepreneurs and stimulating local economic growth through improved access to finance has the potential to benefit the wider community and enhance the resilience of Fiji’s economy. This legislative development is a hopeful indication of the government’s proactive approach to fostering a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
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