The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister Manoa Kamikamica during a parliamentary session. This crucial legislation aims to tackle the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue of importance recognized both internationally and locally.
Kamikamica highlighted the pressing need for improved access to finance, particularly in rural regions where cooperatives have effectively contributed to economic empowerment, notably among indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential role cooperative models can play in driving sustainable development and social advancement.
To enhance support for the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. The introduction of a newly established Cooperative Development Fund, which recently received parliamentary approval, aims to strengthen the operational capacities of cooperatives, reflecting the government’s commitment to this vital sector.
Public consultations held earlier this year revealed that many SMEs encounter significant barriers in accessing traditional financing options, often due to inadequate credit histories, revenue flows, or collateral. This situation has contributed to a noticeable funding gap that the Access to Business Funding Bill aims to bridge through innovative financing solutions, including a small-offer regime for easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sentiment of optimism regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this bill signify a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This development offers a promising path forward for local businesses and communities, potentially transforming the economic landscape in Fiji and supporting sustainable progress for many years to come.
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