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 vital legislation aims to address the significant financial challenges confronting micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues recognized both locally and internationally.
Kamikamica emphasized the urgency of improving access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative is part of a larger context, aligning with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the essential role these models can play in promoting sustainable economic development and social progress.
The government is also planning to modernize the legal framework surrounding cooperatives, with amendments to the Co-operatives Act anticipated later this year. Moreover, the Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this critical sector.
Public consultations earlier this year revealed that many SMEs face significant obstacles when seeking access to traditional financing due to inadequate revenue histories, credit ratings, and collateral, contributing to a substantial funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing solutions, including a small-offer regime to facilitate equity capital raising, as well as investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative may result in positive outcomes for the broader community and enhance the overall resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing an entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This development signals a forward-thinking strategy aimed at enhancing economic opportunities for vulnerable sectors of society, potentially leading to increased prosperity and stability in Fiji’s future.
Leave a comment