The Access to Business Funding Bill is set to gain approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This legislation addresses financial hurdles facing micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a pressing issue highlighted both locally and internationally.
Kamikamica pointed out the critical need for better access to finance, especially in rural regions where cooperatives have shown effectiveness among indigenous Taukei communities. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the role of cooperative models in promoting sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector.
Recent public consultations revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill aims to address this gap through innovative financing solutions, including 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 advances toward approval, optimism is rising regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to yield significant benefits for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures signal a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem conducive to sustained growth and development throughout the nation.
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