The Access to Business Funding Bill is set to gain approval next week, a move announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important piece of legislation aims to address the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges recognized both locally and globally.
Kamikamica emphasized the crucial need for improved access to finance for economic empowerment, particularly in rural regions where cooperatives have shown effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, underscoring the role of cooperative models in promoting sustainable development and social progress.
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. In addition, the recently established Cooperative Development Fund, which has received parliamentary approval, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to strengthening this vital area of the economy.
Public consultations earlier this year revealed that many SMEs struggle to access traditional financing options due to barriers such as insufficient revenue histories, credit ratings, and collateral, resulting in a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative solutions, including a small-offer regime that permits private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is growing optimism that it will create a more inclusive financial environment in Fiji. This initiative might empower entrepreneurs and stimulate local economic growth, ultimately benefiting the wider community and enhancing the overall resilience of Fiji’s economy. Such proactive measures from the government indicate a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of sustaining long-term development and adaptability in the face of future challenges.
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