The Access to Business Funding Bill is on track for approval next week, as confirmed by the Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This important legislation is aimed at addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that has garnered attention both locally and internationally.
Kamikamica highlighted the urgent need for better access to finance, particularly for rural communities, where cooperatives have shown effectiveness, especially among the indigenous Taukei population. He stated that the government is aligning this initiative with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models to foster sustainable economic development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. The government has also introduced a Cooperative Development Fund, which aims to enhance the operational capabilities of cooperatives—a commitment reflecting the importance of this sector in the economy.
Public consultations earlier in the year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, which contribute to a significant funding gap. The Access to Business Funding Bill seeks to bridge this gap by implementing innovative financing solutions, such as a small-offer regime allowing private companies to raise equity capital more easily, along with provisions for investment-driven crowdfunding, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Optimism is growing around the potential of this bill to create 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 and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Comments: The Access to Business Funding Bill represents a critical step toward improving the financial landscape for small enterprises and cooperatives in Fiji. By modernizing the legal framework and addressing funding gaps, the government demonstrates a dedication to fostering economic empowerment and growth, particularly among underrepresented communities. This initiative not only aligns with global efforts to recognize the value of cooperatives but also positions Fiji favorably for future economic resilience and community development.
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