The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent session in Parliament. This legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which are not only recognized as pressing issues domestically but also highlighted on a global scale.
Kamikamica underscored the necessity of improving access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the potential of cooperative models to promote sustainable development and social advancement.
The Fijian government is working towards modernizing the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Moreover, the establishment of a Cooperative Development Fund, which recently gained parliamentary approval, aims to enhance the operational capacity of cooperatives, which reflects the government’s commitment to bolstering this vital sector.
Public consultations conducted earlier this year revealed that numerous SMEs struggle to secure traditional financing due to barriers such as inadequate revenue histories, insufficient credit ratings, and lack of collateral. This situation has resulted in a significant funding gap. The Access to Business Funding Bill seeks to address these challenges through innovative solutions. These include a small-offer regime that facilitates the raising of equity capital for private companies and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As this bill moves toward approval, there is growing optimism that it will cultivate a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislative initiative could potentially benefit the wider community while enhancing the overall resilience of Fiji’s economy. The proactive measures indicated by the Fijian government signal a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
This legislative development offers promising opportunities, illustrating the government’s dedication to alleviating financial barriers for MSMEs and cooperatives and fostering a flourishing economic landscape for the community.
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