The Access to Business Funding Bill is on track for approval next week, as announced by Fiji’s Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important piece of legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives—issues recognized both locally and internationally.
Kamikamica emphasized the pressing need for better access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in promoting sustainable development and social progress.
The Fijian government is also looking to modernize the legal framework that governs cooperatives, expecting amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund, which has received parliamentary approval, aims to bolster the operational capabilities of cooperatives.
Recent public consultations revealed that many SMEs struggle to access traditional financing options, often due to barriers like inadequate revenue histories, credit ratings, or collateral. This has created a significant funding gap. To address this, the Access to Business Funding Bill proposes innovative financing solutions, including a small-offer regime that will facilitate equity capital raising and investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill nears its approval, there is growing optimism that it will foster a more inclusive financial environment in Fiji, empowering entrepreneurs and stimulating local economic growth. The government’s proactive measures signal a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem, enhancing not only individual businesses but also the overall resilience and adaptability of Fiji’s economy in the long run.
This initiative provides promising prospects for MSMEs and cooperatives in Fiji, suggesting a brighter economic future as these groups gain better access to vital financial resources.
Leave a comment