The Access to Business Funding Bill is expected to gain approval next week, as announced by the Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This important legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern acknowledged both locally and globally.
Kamikamica emphasized the pressing need for improved access to finance, particularly in rural areas where cooperatives have demonstrated significant effectiveness, particularly among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the essential role cooperative models play in fostering sustainable development and social progress.
To bolster the cooperative sector, the Fijian government intends to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated later this year. Additionally, a newly established Cooperative Development Fund has recently been approved by Parliament, aimed at enhancing the operational capabilities of cooperatives, reflecting the government’s commitment to strengthening this vital sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs encounter difficulties in accessing traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. This has led to a considerable funding gap, which the Access to Business Funding Bill seeks to alleviate through innovative financing solutions. These include a small-offer regime that allows private companies to raise equity capital more easily, alongside provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, optimism is rising regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could prove beneficial for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem that is capable of supporting sustained growth and development throughout the nation.
This progress highlights an exciting opportunity for Fiji’s business sectors, potentially leading to increased economic activity and providing essential support for entrepreneurs addressing local needs.
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