The Access to Business Funding Bill is set to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have garnered attention both nationally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural regions where cooperatives have demonstrated their effectiveness among indigenous Taukei communities. The initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in promoting sustainable economic development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated later this year. The recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, further reinforcing the government’s commitment to this vital sector of the economy.
Public consultations conducted earlier in the year revealed that many SMEs face considerable barriers to accessing traditional financing options due to insufficient revenue histories, credit ratings, or collateral. This has resulted in a notable funding gap. The Access to Business Funding Bill is crafted to bridge this gap by introducing alternative financing solutions. These include a small-offer regime that allows private companies to raise equity capital more easily, as well as 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 burgeoning 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 is poised to yield positive outcomes for the broader community and strengthen the resilience of Fiji’s economy. The proactive measures reflected in this legislation symbolize a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
This legislative movement is a significant step towards enhancing the financial infrastructure in Fiji, promising not only to empower local businesses but also to bolster economic resilience in the face of global challenges.
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