The Access to Business Funding Bill is set to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This crucial legislation aims to address the significant financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, concerns acknowledged both locally and globally.
Kamikamica emphasized the pressing need for improved access to finance, especially in rural areas where cooperatives, particularly among the indigenous Taukei communities, have proven effective. This initiative is in alignment with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in fostering sustainable development and social advancement.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. The recently established Cooperative Development Fund, which has gained parliamentary approval, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations revealed that many SMEs struggle to access traditional financing due to factors such as inadequate revenue histories, credit ratings, and collateral, resulting in a substantial funding gap. The Access to Business Funding Bill proposes innovative financing solutions, including a small-offer regime that will enable private companies to raise equity capital more easily and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, there is increasing optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the wider community, enhancing the overall resilience of Fiji’s economy. The government’s proactive approach signifies a hopeful commitment to fostering a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This development shines a light on the potential for economic empowerment of MSMEs and cooperatives, paving the way for a robust and resilient economy in Fiji.
Leave a comment