The Access to Business Funding Bill is set for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This legislation aims to tackle significant financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue that Kamikamica highlighted as a critical challenge globally.
The government’s initiative reflects its commitment to fostering economic empowerment, particularly within the cooperative sector, which has shown to be effective in rural areas, especially among the indigenous Taukei population. The United Nations has designated 2025 as the International Year of Cooperatives, underscoring the significance of cooperative structures for sustainable development and social progress.
To further support these efforts, the government plans to modernize the legal framework surrounding cooperatives, with amendments to the Co-operatives Act anticipated this year. The introduction of the Cooperative Development Fund, which recently received parliamentary approval, is expected to bolster the cooperative sector significantly.
Recent public consultations revealed that many SMEs in Fiji struggle to access traditional financing due to factors such as insufficient revenue history or lack of collateral, leading to a considerable funding gap. The Access to Business Funding Bill aims to bridge this gap by enabling companies to raise equity capital through a small-offer regime and making provisions for investment-geared crowdfunding, including both equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the legislation progresses, there is hope that these initiatives will create a more inclusive financial landscape in Fiji, paving the way for sustainable economic growth. Such measures could support entrepreneurs who currently face barriers to accessing vital funding, ultimately benefiting the broader community and enhancing the resilience of Fiji’s economy.
In summary, the Access to Business Funding Bill represents a responsive strategy by the Fijian government to enhance access to finance for MSMEs, potentially facilitating a thriving entrepreneurial environment and contributing positively to economic revitalization efforts across the nation.
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