The Access to Business Funding Bill is set to be approved next week, according to an announcement by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This important legislation seeks to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which are recognized as critical issues not only domestically but also globally.
Kamikamica underscored that access to finance is vital for economic empowerment, particularly in rural areas where cooperatives have proven successful, notably among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Co-operatives, highlighting the significance of cooperative models in achieving sustainable economic and social development.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be proposed this year. The introduction of the Cooperative Development Fund, which has recently gained parliamentary approval, aims to bolster the operational capacity of cooperatives, further showcasing the government’s dedication to enhancing economic resilience in the sector.
Recent public consultations revealed that many SMEs struggle to access traditional financing due to the absence of established revenue streams, credit histories, or sufficient collateral, resulting in a substantial funding gap. The Access to Business Funding Bill is designed to address these challenges by facilitating innovative financing options. It includes a small-offer regime that allows private companies to raise equity capital more easily and provisions for investment-driven crowdfunding such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the legislation progresses toward approval, there is widespread optimism that this bill will promote a more inclusive financial environment. By improving access to finance for MSMEs and cooperatives, the initiative holds great potential for empowering entrepreneurs and fostering local economic growth, ultimately benefiting the wider community and enhancing the resilience of Fiji’s economy.
This legislation represents a meaningful step forward for the Fijian government in addressing access to finance for MSMEs and cooperatives and offers a hopeful prospect for a thriving entrepreneurial ecosystem that can sustain economic growth.
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