The Access to Business Funding Bill is set to receive parliamentary approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This important legislation aims to address the financial obstacles that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue acknowledged both locally and globally.
Kamikamica highlighted the critical need for improved access to finance, particularly in rural regions where cooperatives have proven their worth, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, underscoring the potential of cooperatives to foster sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be proposed this year. Additionally, the government has recently established a Cooperative Development Fund, which has been approved by Parliament and aims to enhance the operational effectiveness of cooperatives, reflecting a commitment to this vital sector.
Recent public consultations revealed that many SMEs struggle to access traditional forms of financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. This situation has resulted in a significant funding gap that the Access to Business Funding Bill seeks to bridge through innovative financing solutions, including a small-offer regime to help private companies raise equity capital and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Overall, there is growing optimism regarding the bill’s potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant benefits for the broader community and enhance 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 across the nation.
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