The Access to Business Funding Bill is poised for 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 financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern that resonates both locally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially within the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the importance of cooperative models in fostering economic and social well-being.
The Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Additionally, the recently approved Cooperative Development Fund aims to boost the operational capacity of cooperatives, showcasing the government’s commitment to strengthening this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to secure traditional financing due to issues such as insufficient revenue histories, lack of credit ratings, or collateral, leading to a considerable funding gap. The Access to Business Funding Bill is designed to fill this gap by introducing innovative financing solutions. The legislation includes a small-offer regime to facilitate equity capital raising and enables options for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses, there is growing optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs, the initiative has the potential to spur local economic growth, benefiting the wider community and enhancing the resilience of Fiji’s economy. This forward-thinking approach reflects the government’s commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting long-term growth, offering a hopeful prospect for the future of MSMEs and cooperatives in the nation.
This legislative development is a significant step toward enabling sustainable economic growth and could transform opportunities for many communities across Fiji.
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