The Access to Business Funding Bill is on the verge of approval, expected next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent session in Parliament. This legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a challenge recognized internationally.
Kamikamica stressed the urgent necessity for improved access to finance, particularly in rural communities where cooperatives have proven effective, especially among indigenous Taukei populations. This initiative aligns with the United Nations’ proclamation that 2025 will be the International Year of Cooperatives, underscoring the significant role of cooperatives in advancing sustainable development and social progress.
To further bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the newly approved Cooperative Development Fund aims to significantly enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector.
Previous public consultations highlighted the challenges many SMEs encounter in accessing traditional financing due to factors such as inadequate revenue histories, credit ratings, or collateral. This has contributed to a pronounced funding gap, which the Access to Business Funding Bill seeks to address through innovative financing solutions. These include a small-offer regime to facilitate equity capital raising and investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing optimism about its potential to create a more inclusive financial landscape for Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative aims to yield significant benefits for the wider community, enhancing the resilience of Fiji’s economy. The proactive measures outlined in this legislation indicate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained economic growth and development throughout the nation.
This positive development illustrates a significant step forward for Fijian MSMEs and cooperatives, providing them with the necessary support to thrive and contribute to the national economy.
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