The Access to Business Funding Bill is expected to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This legislative initiative aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which have been recognized both domestically and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei communities. This effort aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the role of cooperatives in promoting sustainable economic development and social progress.
In addition to the anticipated approval of the bill, the Fijian government has plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Recently, the Cooperative Development Fund was also approved by Parliament, aimed at bolstering the operational capabilities of cooperatives, further reinforcing the government’s commitment to this vital sector.
Public consultations held earlier this year revealed that many SMEs struggle to access traditional financing options due to various barriers, including inadequate credit histories and collateral, which contribute to a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap through innovative financing solutions. These include establishing a small-offer regime that facilitates private companies in raising equity capital and introducing crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves forward, there is a growing sense of optimism that it will create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is expected to yield positive outcomes for the broader community and bolster the resilience of Fiji’s economy. The government’s proactive measures indicate a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
Overall, this legislative effort could serve as a crucial step towards empowering local businesses and fostering economic resilience within Fiji, promoting sustainable development in line with global standards.
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