The Access to Business Funding Bill is on course for parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent session. This significant piece of legislation aims to tackle the financial hurdles that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, which has been a concern both domestically and internationally.
Kamikamica pointed to the critical need for better access to finance, particularly for rural regions where cooperatives have demonstrated substantial effectiveness among indigenous Taukei communities. This initiative is in line with the United Nations’ declaration of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models to drive sustainable economic development and social progress.
The Fijian government plans to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. Additionally, the recently established Cooperative Development Fund, which received parliamentary approval, is designed to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to strengthening this vital sector.
Recent public consultations indicated that many SMEs struggle to secure traditional financing due to various barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a noticeable funding gap. The Access to Business Funding Bill aims to address these challenges through innovative financing solutions, including a small-offer regime for easier equity capital raising and provisions for investment-driven crowdfunding options, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
Optimism is growing regarding the bill’s potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures embodied in this legislation underscore the government’s hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
This bill represents an encouraging step forward in addressing long-standing financial barriers faced by small businesses, potentially unlocking new opportunities for economic empowerment and sustainability in Fiji.
Leave a comment