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 recent parliamentary session. This important legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that have been recognized both locally and globally.
Kamikamica emphasized the critical need for improved access to finance, particularly for rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the vital role cooperative models can play in fostering sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Furthermore, the Cooperative Development Fund, which recently received parliamentary approval, aims to enhance the operational capacities of cooperatives, reinforcing the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing options, often due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates private companies in raising equity capital more easily, as well as investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the broader community while enhancing the overall resilience of Fiji’s economy. The government’s proactive measures indicate a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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