The Access to Business Funding Bill is on track to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This important legislation aims to address the financial obstacles that micro, small, and medium enterprises (MSMEs) and cooperatives encounter in Fiji, a challenge recognized both locally and internationally.
Kamikamica stressed the urgent need for improved access to finance, especially in rural areas where cooperatives have proven effective, particularly among the indigenous Taukei communities. This initiative is aligned with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the significance of cooperative models in promoting sustainable economic growth and social development.
To enhance the cooperative sector, the Fijian government intends to modernize the legal framework governing these organizations, with anticipated amendments to the Co-operatives Act this year. Additionally, the newly established Cooperative Development Fund, recently approved by Parliament, aims to boost the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector of the economy.
Public consultations earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. This has created a substantial funding gap, which the Access to Business Funding Bill aims to address through innovative financing solutions. These include introducing a small-offer regime to facilitate easier 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 growing optimism regarding its potential to cultivate a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver significant benefits for the wider community and strengthen the resilience of Fiji’s economy. The proactive measures presented in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislative move not only addresses financial access challenges but also stands as a testament to the government’s dedication to fostering an inclusive economic landscape that can support and empower individuals and communities alike.
Leave a comment