The Access to Business Funding Bill is set to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues acknowledged both locally and internationally.
Kamikamica emphasized that improved access to finance is critical for economic empowerment, especially in rural areas where cooperatives have proven effective, particularly among the indigenous Taukei community. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the potential of cooperative models to promote sustainable economic development and social progress.
To further strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund is set to enhance the operational capabilities of cooperatives, demonstrating the government’s commitment to supporting this vital sector.
Public consultations earlier this year revealed that many SMEs face significant barriers when trying to access traditional financing options, often due to inadequate revenue histories, credit ratings, or collateral. As a result, a substantial funding gap has emerged, which the Access to Business Funding Bill seeks to address through innovative financing solutions, including a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is growing optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to provide significant benefits for the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of fostering sustained growth and development within the nation.
Overall, this legislation marks an important step forward in addressing the challenges faced by MSMEs, potentially transforming the economic landscape of Fiji for the better.
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