The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation aims to tackle the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that have garnered both national and international attention.
Kamikamica underscored the critical need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the role of such models in promoting sustainable economic development and social progress.
The government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated later this year. Furthermore, the recently established Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations have revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap that the Access to Business Funding Bill aims to address through innovative financing solutions. This includes a small-offer regime that facilitates easier equity capital raising for private companies and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, optimism is increasing that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to benefit the broader community and enhance the resilience of Fiji’s economy. The proactive steps reflected in this legislation showcase the government’s hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting ongoing growth and development throughout the nation.
This legislative initiative represents an important opportunity for the growth of the cooperative sector and MSMEs, encouraging innovation and economic empowerment across Fiji.
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