The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This crucial piece of legislation aims to address significant financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that resonate on both local and global scales.
Kamikamica noted that access to finance is vital for economic empowerment, especially in rural areas where cooperatives have been active in supporting communities, particularly among the indigenous Taukei population. With the United Nations designating 2025 as the International Year of Cooperatives, the timing of this initiative reinforces the importance of cooperative models for sustainable development and social progress.
As part of this effort, the government is looking to modernize the legal framework for cooperatives through proposed amendments to the Co-operatives Act within the year. Additionally, the Cooperative Development Fund, which recently received parliamentary approval, aims to enhance the operational capacity of cooperatives.
Recent public consultations have underscored that many SMEs struggle to secure traditional financing due to barriers like insufficient revenue streams, lack of credit history, and inadequate collateral, resulting in a notable funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing options, such as a small-offer regime that will allow private companies to raise equity capital more easily, and by facilitating investment-driven crowdfunding methods, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
With the anticipated approval of this bill, there is growing optimism that it will foster a more inclusive financial environment, empowering entrepreneurs and contributing to local economic growth. This initiative is viewed as a proactive approach to creating a supportive entrepreneurial ecosystem that not only benefits individual businesses but also enhances the overall resilience of Fiji’s economy.
By addressing the immediate financial barriers faced by MSMEs and cooperatives, this legislation symbolizes hope for the future of entrepreneurship in Fiji, aligning with broader efforts towards sustainable economic growth.
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