The Access to Business Funding Bill is set to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation is aimed at addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have gained both local and global recognition.
Kamikamica highlighted the critical necessity for improved access to finance, particularly in rural regions, 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 potential of cooperative models to foster sustainable economic development and social progress.
In efforts to strengthen the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act slated for this year. Additionally, the recently established Cooperative Development Fund, approved by Parliament, aims to enhance the operational capacities of cooperatives, reinforcing the government’s commitment to this crucial sector of the economy.
Earlier public consultations revealed that many SMEs face significant barriers in accessing traditional financing due to issues such as inadequate revenue histories, credit ratings, or collateral, leading to a noticeable funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions, including a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield positive outcomes for the broader community and enhance the resilience of Fiji’s economy. This proactive approach from the government reflects a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Leave a comment