The Access to Business Funding Bill is anticipated to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This legislation is set to tackle significant financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives, challenges that Kamikamica identified as critical not only in Fiji but globally.
Kamikamica emphasized the importance of improving access to finance as a key component of economic empowerment, particularly highlighting the effectiveness of cooperatives in rural communities, including among indigenous Taukei populations. In alignment with the recognition from the United Nations that 2025 will be the International Year of Cooperatives, this initiative underscores the cooperative model’s potential for sustainable economic development and social advancement.
In addition to the bill, the government is planning to modernize the legal and policy framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Furthermore, the newly established Cooperative Development Fund has received parliamentary approval and aims to support the operational capacity of cooperatives, significantly enhancing their impact in the sector.
Public consultations earlier this year revealed that numerous SMEs in Fiji encounter substantial barriers to accessing traditional financing, primarily due to a lack of proven revenue streams, credit histories, or sufficient collateral. This has resulted in a pronounced funding gap for many businesses, a gap that the Access to Business Funding Bill seeks to address through innovative financing options. The bill proposes the introduction of a small-offer regime, allowing private firms to raise equity capital more easily, alongside facilitating investment-geared crowdfunding options such as equity crowdfunding and peer-to-peer lending.
The expected approval of this Bill represents a proactive step by the Fijian government toward establishing a more inclusive financial landscape. The hope is that these reforms will empower entrepreneurs, particularly those facing financial barriers, thereby contributing positively to the overall resilience and growth of Fiji’s economy.
Overall, this initiative is regarded as a significant stride towards fostering economic opportunity and resilience in the Fijian market, with the potential to create a vibrant entrepreneurial ecosystem that benefits broader communities. As the legislation progresses, it ignites optimism for a supportive future for MSMEs and cooperatives, paving the way for sustained economic growth.
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