The Access to Business Funding Bill is expected to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and globally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural regions where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, highlighting the vital role that cooperative models can play in promoting sustainable development and social progress.
To support this important sector, the Fijian government plans to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this crucial area of the economy.
Public consultations held earlier in the year revealed significant barriers that many SMEs encounter when trying to access traditional financing, often due to insufficient revenue histories, credit ratings, or collateral. This situation has resulted in a noticeable funding gap that the Access to Business Funding Bill aims to bridge through innovative financing solutions. These include a small-offer regime allowing private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches its approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative holds the promise of yielding significant benefits for the broader community while enhancing the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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