The Access to Business Funding Bill is slated for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation is designed to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that has attracted both local and international attention.
Kamikamica stressed the urgent need for enhanced access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the crucial role that cooperative models can play in fostering sustainable economic development and social advancement.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated later this year. A newly established Cooperative Development Fund has also received parliamentary approval, intended to strengthen the operational capabilities of cooperatives and showing the government’s commitment to bolstering this vital sector.
Previous public consultations revealed that many SMEs encounter significant barriers when seeking traditional financing, often due to insufficient revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap, which the Access to Business Funding Bill aims to address by introducing 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 growing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield considerable benefits for the broader community, ultimately enhancing the resilience of Fiji’s economy.
The proactive measures outlined in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem, paving the way for sustained growth and development across the nation.
Leave a comment