The Access to Business Funding Bill is on track for approval next week, as announced by Fiji’s Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This critical piece of legislation is designed to tackle the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a widely acknowledged issue both locally and globally.
Kamikamica emphasized the urgent need for improved access to finance, especially in rural regions where cooperatives have proven effective, particularly among the indigenous Taukei communities. This initiative coincides with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the pivotal role that cooperative models can play in sustainable development and social progress.
In addition, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act expected this year. Recently, a Cooperative Development Fund was established and approved by Parliament to further bolster the operational capabilities of cooperatives, underscoring the government’s commitment to this vital economic sector.
Recent public consultations revealed significant challenges that SMEs face in securing traditional financing, often due to insufficient revenue histories, lack of credit ratings, or collateral, leading to a considerable funding gap. The Access to Business Funding Bill aims to address these issues by introducing innovative financing solutions, including a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches its expected approval, there is a growing sense of optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislation promises to provide substantial benefits to the wider community and enhance the resilience of Fiji’s economy. The proactive measures outlined in this bill reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem that can support sustained growth and development throughout the nation.
Overall, the Access to Business Funding Bill not only aims to bridge the financing gap but also represents a significant step towards fostering economic empowerment and sustainability within Fiji’s entrepreneurial landscape.
Leave a comment