The Access to Business Funding Bill is expected to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This important piece of legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges acknowledged both nationally and internationally.
Kamikamica emphasized the critical need for improved access to financing, particularly for rural communities where cooperatives have proven effective, especially among the indigenous Taukei population. The bill aligns with the United Nations’ announcement that 2025 will be the International Year of Cooperatives, highlighting the potential of cooperative models to facilitate sustainable development and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently established Cooperative Development Fund aims to strengthen operational capabilities within cooperatives, underscoring the government’s commitment to this essential sector.
Public consultations earlier this year made clear that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative financing solutions, including a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a wave of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative holds promise for the wider community and aims to enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation highlight a hopeful commitment from the government to create a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development across the nation.
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