The Access to Business Funding Bill is set to be approved by the Fijian Parliament next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation is aimed at addressing the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives, a challenge that has been highlighted both nationally and internationally.
During his announcement, Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives have been effective, especially among the indigenous Taukei communities. The initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, showcasing the potential of cooperative models to drive sustainable development and social progress in Fiji.
The Fijian government is also planning to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated for this year. In conjunction with these efforts, a newly established Cooperative Development Fund has recently received parliamentary approval, aimed at enhancing the operational capabilities of cooperatives—an important step in reinforcing the government’s commitment to this vital sector.
Earlier public consultations revealed that many SMEs struggle with accessing traditional financing due to barriers like insufficient revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, along with 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 sense of optimism about its potential to create a more inclusive financial environment in Fiji. This initiative aims to empower entrepreneurs and stimulate local economic growth, which could lead to substantial benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures in this legislation reflect a hopeful commitment from the government to nurture a dynamic entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Overall, this bill signifies a promising shift towards fostering economic empowerment, particularly for those in rural communities who rely on cooperative models for their livelihoods.
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