The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This pivotal legislation aims to tackle the financial hurdles that micro, small, and medium enterprises (MSMEs) and cooperatives encounter in Fiji—issues recognized both locally and globally.
Kamikamica emphasized the urgent need for enhanced access to finance, particularly in rural regions where cooperatives have demonstrated their value, especially within the indigenous Taukei communities. This initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the vital role cooperative models play in advancing sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. Additionally, a newly established Cooperative Development Fund, recently approved by Parliament, is designed to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this critical sector.
Previous public consultations have revealed that many SMEs struggle to secure traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, which has created a significant funding gap. The Access to Business Funding Bill is aimed at closing this gap through innovative financial solutions. These include a small-offer regime that allows private companies to raise equity capital more conveniently and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Optimism is growing as the bill nears approval, with expectations that it will foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to yield significant benefits for the broader community, enhancing the overall resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation not only addresses the immediate financial challenges faced by MSMEs and cooperatives but also sets the groundwork for fostering a sustainable economic environment that can adapt to future challenges.
Leave a comment