The Access to Business Funding Bill is set to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This significant piece of legislation is designed to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both locally and internationally.
Kamikamica underscored the urgent need for better access to financing, particularly in rural regions where cooperatives have been effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which emphasizes the potential impact of cooperative models on sustainable economic development and social advancement.
To enhance the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act expected this year. Additionally, the Cooperative Development Fund, recently approved by Parliament, aims to bolster the operational capacities of cooperatives, reflecting the government’s commitment to this critical sector.
Earlier public consultations revealed that many SMEs face significant barriers when accessing traditional financing, such as insufficient revenue histories, credit ratings, or collateral, leading to a notable funding gap. The Access to Business Funding Bill is intended to bridge this gap by introducing innovative financing solutions. This includes a small-offer regime that facilitates equity capital raising for private companies, alongside investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. This initiative is expected to empower entrepreneurs and encourage local economic growth, promising to benefit the broader community and enhance the overall resilience of Fiji’s economy. The proactive measures outlined in this legislation demonstrate the government’s hopeful commitment to cultivating a vibrant entrepreneurial ecosystem that supports sustained growth and development nationwide.
Leave a comment