The Access to Business Funding Bill is expected to be approved next week, as recently stated by Deputy Prime Minister and Minister of Trade, Manoa Kamikamica, in a parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, addressing issues that have been recognized both locally and internationally.
Kamikamica emphasized the critical need for improved access to finance, particularly in rural areas where cooperatives have shown effectiveness among the indigenous Taukei population. This initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential of cooperatives in fostering sustainable economic development and social progress.
The government plans to modernize the legal framework that governs cooperatives, with amendments to the Co-operatives Act anticipated this year. Furthermore, a newly established Cooperative Development Fund, which has received parliamentary approval, aims to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this vital sector.
Recent public consultations revealed that many SMEs struggle to access traditional financing options due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a significant 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 equity capital raising and provisions for investment-driven crowdfunding options, including 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 create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could bring substantial benefits to the broader community and enhance the resilience of Fiji’s economy. The proactive steps taken by the government signify a hopeful commitment towards developing a vibrant entrepreneurial ecosystem that can support sustained growth and development throughout the nation.
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