The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This legislative initiative aims to address significant financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue recognized both in Fiji and globally.
Kamikamica emphasized that improving access to finance is essential for economic empowerment, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei communities. This legislative move coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the significance of cooperative structures in fostering sustainable development.
The government plans to modernize the existing legal framework governing cooperatives and will propose amendments to the Co-operatives Act this year. Additionally, the Cooperative Development Fund, which has recently gained parliamentary approval, is designed to enhance the operational capacity of cooperatives.
Public consultations earlier in the year revealed that many SMEs struggle to secure traditional financing due to inadequate revenue histories, credit ratings, or collateral, resulting in a notable funding gap. The Access to Business Funding Bill aims to mitigate these issues by introducing innovative financing alternatives, including a small-offer regime that facilitates easier equity capital raising and investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Optimism surrounds the bill as it progresses toward approval, with hopes that it will establish a more inclusive financial environment in Fiji. Empowering MSMEs and cooperatives through enhanced access to finance could lead to constructive local economic growth and strengthen the broader community, ultimately contributing to the resilience of Fiji’s economy. This initiative reflects a hopeful commitment by the Fijian government to build a thriving and sustainable entrepreneurial ecosystem.
Leave a comment