The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that have received attention both nationally and internationally.
Kamikamica underscored the urgent need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative is in line with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the importance of cooperative models in driving sustainable economic development and social advancement.
The Fijian government is also looking to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. Moreover, a newly approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Earlier public consultations indicated that many SMEs struggle to access traditional financing routes due to factors such as insufficient revenue histories, credit ratings, and collateral, resulting in a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative financing solutions, including a small-offer regime that will facilitate equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing sense of optimism about its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative holds the promise of significantly benefiting the broader community and enhancing the resilience of Fiji’s economy. The proactive approach taken by the government reflects a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
In summary, this legislative effort is a crucial step in addressing the financial challenges faced by MSMEs and cooperatives in Fiji, showcasing the government’s commitment to economic empowerment and community development.
Leave a comment