The Access to Business Funding Bill is slated for approval next week, as disclosed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This crucial legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—a concern recognized both locally and internationally.
Kamikamica emphasized the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which underscores the important role cooperative models play in promoting sustainable development and social advancement.
To further strengthen this sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, a Cooperative Development Fund has recently gained parliamentary approval, aimed at boosting the operational capabilities of cooperatives, demonstrating the government’s commitment to this vital area.
Public consultations conducted earlier this year highlighted that many SMEs face significant barriers in accessing traditional financing options due to factors such as inadequate revenue histories, credit ratings, or collateral, contributing to 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 allows private companies to more easily raise equity capital, along with provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is growing optimism about its potential to cultivate a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver substantial benefits to the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a thriving entrepreneurial ecosystem that can sustain growth and development across the nation.
In conclusion, the Access to Business Funding Bill is a significant step towards resolving funding issues faced by SMEs and cooperatives, encouraging economic empowerment, particularly in rural areas.
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