The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This critical legislation targets the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have received significant attention both domestically and globally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives, especially among the indigenous Taukei population, have demonstrated their effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the significant role cooperative models can play in fostering sustainable economic and social development.
To enhance support for this vital sector, the Fijian government plans to modernize the legal framework for cooperatives, with amendments to the Co-operatives Act expected this year. Furthermore, the recent establishment of the Cooperative Development Fund, which has gained parliamentary approval, aims to significantly boost the operational capabilities of cooperatives, reflecting the government’s commitment to revitalizing this sector.
Public consultations have revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, lack of credit ratings, and collateral issues, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by proposing innovative financing solutions. These include a small-offer regime allowing private companies to raise equity capital more easily, as well as provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances, there is growing optimism that it will lead to a more inclusive financial environment in Fiji. This initiative has the potential to empower entrepreneurs, stimulate local economic growth, and ultimately benefit the wider community while enhancing the resilience of Fiji’s economy. The proactive measures highlighted by this legislation signify a hopeful commitment from the Fijian government to foster a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
This legislative move stands as a promising strategy to improve access to finance for MSMEs and cooperatives, creating transformative opportunities for communities throughout Fiji.
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