The Access to Business Funding Bill is expected to receive approval by next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This important legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues that have been recognized both locally and internationally.
Kamikamica highlighted the critical need for improved access to finance, particularly in rural regions where cooperatives have shown their effectiveness, especially among the indigenous Taukei communities. This initiative is in alignment with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential role of cooperative models in fostering sustainable development and social progress.
The Fijian government is also planning to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Furthermore, the Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector of the economy.
Previous public consultations earlier this year revealed that many SMEs struggle with access to traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, which contribute to a significant funding gap. The Access to Business Funding Bill was designed to bridge this gap by introducing alternative financing solutions, including a small-offer regime that facilitates 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 growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. This initiative promises to empower entrepreneurs and stimulate local economic growth, ultimately benefiting the wider community and enhancing the resilience of Fiji’s economy. The government’s proactive steps reflect a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Leave a comment