The Access to Business Funding Bill is poised for approval next week, according to Deputy Prime Minister and Minister for Trade Manoa Kamikamica, who made the announcement in Parliament. This important piece of legislation aims to tackle significant financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue highlighted as a critical global and local challenge.
Kamikamica emphasized the necessity of improving access to finance, particularly in rural areas where cooperatives play a vital role in economic empowerment, especially for the indigenous Taukei communities. The timing of this legislative move aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underscoring the cooperative model’s potential for sustainable economic and social development.
The government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the establishment of the Cooperative Development Fund, recently approved by Parliament, aims to enhance operational capacity and support for cooperatives, reflecting the government’s commitment to advancing economic resilience.
Recent public consultations indicated that many SMEs struggle to secure traditional financing due to a lack of proven revenue streams, credit histories, or sufficient collateral, resulting in a notable funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing options, such as a small-offer regime for raising equity capital and facilitating investment-geared crowdfunding methods, including equity crowdfunding and peer-to-peer lending (P2PL).
As discussions continue around this bill, there is optimism that these measures will cultivate a more inclusive financial environment in Fiji, paving the way for sustainable economic growth. Empowering SMEs and cooperatives through improved access to finance could foster a dynamic entrepreneurial ecosystem beneficial to the broader community, enhancing Fiji’s economic endurance and vitality.
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