The Access to Business Funding Bill is set to be approved next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who announced this during a parliamentary session. The legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—a concern recognized both locally and internationally.
Kamikamica expressed the pressing need for enhanced access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among Fiji’s indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the important role these organizations can play in driving sustainable development and social progress.
To support cooperatives, the Fijian government plans to modernize the legal framework that governs them, with proposed amendments to the Co-operatives Act expected this year. The recently established Cooperative Development Fund, which has already received parliamentary approval, is designed to improve the operational capabilities of cooperatives, signifying the government’s commitment to this important sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional forms of financing due to barriers like inadequate revenue histories, credit ratings, or collateral. This situation has resulted in a significant funding gap, which the Access to Business Funding Bill aims to address through innovative financing solutions. These solutions include a small-offer regime that will allow private companies to more easily raise equity capital, along with provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, optimism is growing regarding its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver substantial benefits to the wider community, enhancing the resilience of Fiji’s economy. The government’s proactive approach reflects a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation not only represents a step forward for financial accessibility in Fiji but also aligns with global efforts to re-emphasize the importance of cooperatives in achieving socio-economic stability.
Leave a comment