The Access to Business Funding Bill is anticipated to receive approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This pivotal legislation aims to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern highlighted both locally and internationally.
Kamikamica pointed out the essential role of access to finance in driving economic empowerment, especially in rural areas where cooperatives have proven effective, notably among the indigenous Taukei community. This initiative ties in with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the importance of sustainable cooperative models in fostering economic and social development.
The Fijian government is also moving to modernize the legal framework governing cooperatives, with expected amendments to the Co-operatives Act this year. A newly established Cooperative Development Fund, which has gained parliamentary approval, aims to bolster the operational capacity of cooperatives significantly, demonstrating the government’s commitment to strengthening this critical sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional finance due to inadequate revenue streams, credit histories, or collateral, resulting in a notable funding gap. The Access to Business Funding Bill proposes innovative solutions to bridge this gap by introducing a small-offer regime that facilitates easier equity capital raising, alongside options for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is growing optimism that it will foster a more inclusive financial landscape in Fiji. This legislative move is expected to empower entrepreneurs and drive local economic growth, benefiting the broader community while enhancing the resilience of Fiji’s economy. The proactive approach highlighted by this initiative suggests a hopeful outlook for the future of MSMEs and cooperatives in Fiji, paving the way for a vibrant entrepreneurial ecosystem capable of supporting sustained economic development.
Leave a comment