The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant piece of legislation addresses the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—a concern acknowledged both locally and internationally.
During the session, Kamikamica emphasized the critical need for enhanced access to financing, especially in rural areas where cooperatives are particularly effective, notably among the indigenous Taukei communities. This initiative aligns with the United Nations declaring 2025 as the International Year of Cooperatives, underscoring the importance of cooperative models for sustainable economic growth and social advancement.
To further support the cooperative sector, the Fijian government is modernizing the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to this vital economic sector.
Public consultations earlier this year revealed that many SMEs face significant hurdles in accessing traditional financing due to factors like insufficient revenue histories, low credit ratings, and lack of collateral, resulting in a notable funding gap. The Access to Business Funding Bill aims to address this gap through innovative financing solutions, including a small-offer regime allowing private companies to raise equity capital more effectively, and 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 growing optimism that it will foster a more inclusive financial environment in Fiji, empowering entrepreneurs and stimulating local economic growth. This initiative holds the potential to significantly benefit not only the broader community but also enhance the resilience of Fiji’s economy. The proactive measures outlined in this legislation reflect a strong commitment by the government to cultivate a robust entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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