The Access to Business Funding Bill is expected to receive approval next week, according to an announcement made by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation aims to tackle the financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, recognized as critical obstacles both locally and globally.
Mr. Kamikamica emphasized that enhancing access to finance is crucial for economic empowerment, particularly in rural areas where cooperatives have proven to be effective, especially within the indigenous Taukei communities. This legislative move also coincides with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the importance of cooperative models in promoting sustainable development and social progress.
The government plans to modernize the legal framework governing cooperatives by introducing amendments to the Co-operatives Act this year. Additionally, the recently established Cooperative Development Fund has been approved by Parliament, aiming to significantly enhance the operational capacity of cooperatives.
Public consultations earlier this year revealed that many SMEs are struggling to access traditional financing due to factors such as insufficient revenue streams, lack of credit history, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to address these challenges by introducing innovative financing options, including a small-offer regime for raising equity capital and facilitating investment-geared crowdfunding avenues such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As this bill moves forward, there is growing optimism that its approval will foster a more inclusive financial environment in Fiji. By empowering MSMEs and cooperatives with improved access to finance, the initiative holds great potential for driving local economic growth and enhancing the overall resilience of Fiji’s economy. These initiatives represent a meaningful commitment by the Fijian government to create a vibrant entrepreneurial ecosystem that can ultimately benefit the wider community.
The anticipated reforms are a hopeful sign that the government is responsive to the challenges faced by SMEs and cooperatives, which can contribute to sustainable economic growth, ultimately transforming the financial landscape for these essential sectors in Fiji.
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