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 pivotal legislation aims to address the significant financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, acknowledged both locally and internationally.
Kamikamica highlighted the urgent need for improved access to financing, with a particular focus on rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei population. The initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models to foster sustainable development and social progress.
To bolster the cooperative sector, the Fijian government has plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently established Cooperative Development Fund, which has gained parliamentary approval, aims to enhance the operational capacities of cooperatives, showcasing the government’s commitment to empowering this vital sector.
Insights from public consultations earlier this year revealed that many SMEs struggle with traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that will facilitate raising equity capital for private companies, along with provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves forward, optimism is on the rise that it will create a more inclusive financial environment in Fiji. This initiative has the potential to empower entrepreneurs and stimulate local economic growth, benefiting not just MSMEs but also the broader community, thereby enhancing the resilience of Fiji’s economy. The government’s proactive measures signal a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of sustaining long-term development in the nation.
Overall, this legislative endeavor represents a significant step towards overcoming financial challenges, paving the way for a more robust and sustainable economic future for Fiji.
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