The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant piece of legislation aims to tackle the financial difficulties encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—a challenge acknowledged both domestically and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have proven effective, notably among the indigenous Taukei population. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the importance of these models in fostering sustainable development and social progress.
To enhance the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act expected this year. Alongside this, the newly established Cooperative Development Fund, which has already gained parliamentary approval, aims to significantly enhance cooperatives’ operational capabilities.
Public consultations conducted earlier this year revealed that many SMEs encounter significant barriers when trying to access traditional financing due to inadequate revenue histories, credit ratings, or sufficient collateral. This has resulted in a substantial funding gap that the Access to Business Funding Bill aims to bridge. Key features of the bill include a small-offer regime to facilitate capital raising for private companies and provisions for innovative financing options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves towards approval, optimism is growing that it will foster a more inclusive financial environment in Fiji, empowering entrepreneurs and stimulating local economic growth. This initiative holds promise for benefiting the wider community, thereby strengthening the resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to build a vibrant entrepreneurial ecosystem capable of supporting long-term growth and development.
Overall, the progress on the Access to Business Funding Bill not only represents a significant legislative step forward but also reflects a promising outlook for the future of MSMEs and cooperatives in Fiji, paving the way for a more robust economic landscape.
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