The Access to Business Funding Bill is on track 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, an issue acknowledged both nationally and internationally.
Kamikamica underscored the critical need for improved access to finance, particularly in rural areas where cooperatives have shown their effectiveness among indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the potential role cooperative models play in fostering sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, strengthening the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs face immense challenges in accessing traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. These obstacles have created a significant funding gap, which the Access to Business Funding Bill seeks to bridge through innovative financing solutions. The bill includes a small-offer regime that facilitates easier equity capital raising for private companies, along with provisions for investment-driven crowdfunding options, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, optimism is rising regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could significantly benefit the broader community and enhance resilience within Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This new approach serves not just to address current financial barriers but to pave the way for a brighter economic future for all Fijians.
Leave a comment