The Access to Business Funding Bill is set for approval in the coming week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—an issue recognized both locally and globally.
Kamikamica emphasized the crucial need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative is particularly timely as the United Nations has declared 2025 the International Year of Cooperatives, highlighting the potential of cooperative models for promoting sustainable development and social progress.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be introduced this year. The establishment of the Cooperative Development Fund, which has gained parliamentary approval, is designed to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to strengthen this vital sector.
Recent public consultations indicated that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral. This has created a significant funding gap that the Access to Business Funding Bill aims to bridge. The legislation will facilitate the raising of equity capital for private companies through a small-offer regime and include 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 a growing sense of optimism that it will create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative could benefit the wider community and enhance the resilience of Fiji’s economy. The proactive measures that underpin this legislation demonstrate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, this initiative is a significant step towards improving financial accessibility for many Fijians, with the potential to drive economic empowerment and sustainable development in the years to come.
Leave a comment