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 significant legislation is designed to address the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, concerns recognized both locally and globally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have shown their effectiveness, especially among the indigenous Taukei population. The initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, reinforcing the importance of cooperative models in promoting sustainable economic 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. Additionally, the newly established Cooperative Development Fund, which recently received parliamentary approval, aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector.
Previous public consultations have highlighted that many SMEs struggle with access to traditional financing options due to barriers such as inadequate revenue histories, credit ratings, or collateral. This has led to a notable funding gap that the Access to Business Funding Bill aims to bridge through innovative financial solutions. These include a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, optimism is rising regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislation could significantly benefit the wider community and enhance 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 across the nation.
Overall, this initiative is a promising step forward for Fiji, signaling the government’s dedication to addressing the financial needs of its entrepreneurial sector and ultimately fostering a healthier economic landscape.
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