The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant piece of legislation aims to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that has been recognized both locally and internationally.
Kamikamica emphasized that improved access to finance is crucial for economic empowerment, particularly in rural regions where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the importance of cooperative models in promoting sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives by amending the Co-operatives Act this year. Furthermore, a newly established Cooperative Development Fund, which recently received parliamentary approval, aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this vital sector.
Public consultations held earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, which contribute to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing options, including a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is growing optimism that it will foster a more inclusive financial environment in Fiji. This initiative has the potential to empower entrepreneurs and stimulate local economic growth, ultimately benefiting the wider community and enhancing the overall resilience of Fiji’s economy. The government’s proactive approach to reforming access to finance signifies a hopeful outlook for the future of MSMEs and cooperatives, paving the way for a strong entrepreneurial ecosystem capable of sustaining long-term growth and development.
This development not only represents a critical step in addressing financial barriers but also lays the foundation for transformative economic opportunities across communities in Fiji.
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