The Access to Business Funding Bill is on the verge of being approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This legislation aims to tackle the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives are currently facing in Fiji, a concern that has garnered significant attention both nationally and internationally.
Kamikamica highlighted the urgent need for improved access to financing, particularly in rural areas where cooperatives have shown considerable effectiveness, particularly among the indigenous Taukei population. The initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, stressing the vital role cooperative models can play in promoting sustainable development and social progress.
To further support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a newly approved Cooperative Development Fund is set to strengthen the operational capacity of cooperatives, reflecting the government’s commitment to enhancing this critical economic sector.
Public consultations conducted earlier this year indicated that many SMEs struggle to access traditional financing options due to various barriers, such as inadequate credit histories or collateral, resulting in a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by facilitating innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital with greater ease and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is a growing sense of optimism regarding its potential to cultivate a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to create significant positive outcomes for the wider community and enhance the resilience of Fiji’s economy. The proactive measures indicated in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of sustaining growth and development throughout the nation.
Overall, the Access to Business Funding Bill represents a timely and crucial step towards addressing the financial hurdles faced by MSMEs and cooperatives, fostering greater economic empowerment and resilience in Fiji’s communities.
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