The Access to Business Funding Bill is anticipated to receive parliamentary approval next week, as revealed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent Parliament session. This legislation aims to address the significant financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges recognized both locally and globally.
Kamikamica stressed the urgent need for improved access to finance, particularly in rural areas where cooperatives have been effective, notably among the indigenous Taukei communities. This initiative is particularly timely as the United Nations has designated 2025 as the International Year of Cooperatives, highlighting the importance of cooperative models in fostering sustainable economic development and social progress.
The government also plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. A recently approved Cooperative Development Fund aims to bolster the operational capacities of cooperatives, reinforcing the government’s commitment to strengthening this vital sector of the economy.
Recent public consultations indicated that many SMEs struggle to access traditional financing options, often hindered by insufficient revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap which the Access to Business Funding Bill seeks to bridge by introducing innovative financing solutions. These include a small-offer regime that allows private companies to raise equity capital more conveniently and provisions for crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is growing optimism about its capacity to alter the financial landscape in Fiji. This initiative promises to empower entrepreneurs and stimulate local economic growth, potentially benefiting the wider community and enhancing the resilience of Fiji’s economy. The government’s proactive measures underscore a hopeful commitment to cultivating a thriving entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
This legislative effort reflects not just responsiveness to the immediate needs of SMEs, but also aims to set the stage for a more adaptable and inclusive financial environment in the future.
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