The Access to Business Funding Bill is set to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation aims to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that is recognized both locally and globally as critical.
Kamikamica emphasized the necessity for improved access to finance for economic empowerment, particularly in rural regions where cooperatives have proven successful, especially among indigenous Taukei communities. This initiative also aligns with the United Nations’ designation of 2025 as the International Year of Co-operatives, highlighting the vital role of cooperative models in supporting sustainable development and social progress.
The Fijian government is committed to modernizing the legal framework governing cooperatives, with plans to amend the Co-operatives Act this year. Additionally, the establishment of a Cooperative Development Fund, recently approved by Parliament, is designed to enhance the operational capacity of cooperatives significantly.
Public consultations conducted earlier this year revealed that many SMEs struggle to secure traditional financing due to barriers such as insufficient revenue histories, lack of creditworthiness, and collateral requirements, resulting in a notable funding gap. The Access to Business Funding Bill is intended to address these challenges by proposing solutions such as a small-offer regime that facilitates equity capital raising and introduces innovative financing options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward approval, there is widespread optimism about its potential to foster a more inclusive financial environment in Fiji. By removing financial barriers for MSMEs and cooperatives, this initiative has the capacity to empower local entrepreneurs and stimulate economic growth within communities, thereby enhancing the overall resilience of Fiji’s economy.
This legislative move represents a proactive approach by the Fijian government to improve access to finance, creating a vibrant entrepreneurial ecosystem that can drive sustainable economic development and provide a hopeful outlook for the future of MSMEs and cooperatives in Fiji.
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