The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This legislation addresses significant financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives, issues recognized as global challenges.
Kamikamica highlighted that access to finance is vital for economic empowerment, particularly in rural areas where cooperatives have proven beneficial. He noted that the United Nations has designated 2025 as the International Year of Cooperatives, reinforcing the cooperative model’s potential for sustainable economic and social development.
To enhance support for cooperatives, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. The newly approved Cooperative Development Fund aims to assist in expanding cooperative operations, showcasing the government’s commitment to strengthening economic resilience through innovative solutions.
Public consultations earlier this year revealed that many SMEs struggle to obtain traditional financing due to inadequate revenue streams, credit history, or sufficient collateral. This has created a notable funding gap, which the Access to Business Funding Bill seeks to address through alternative financing options. Key provisions include enabling private companies to raise equity capital via a small-offer regime and facilitating investment-geared crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
With the anticipated approval of this Bill, the Fijian government is taking proactive steps towards establishing a more inclusive financial landscape. By improving access to finance for MSMEs and cooperatives, this initiative holds great promise for empowering local entrepreneurs and contributing positively to the economic stability of Fiji. Such legislative reforms are expected to foster a supportive environment for entrepreneurship, ultimately benefiting broader communities and nurturing a resilient economy.
This development not only reflects a crucial step toward financial inclusion but also embodies hope for sustainable economic growth as the nation moves toward more collaborative financial practices and entrepreneurial opportunities.
Leave a comment