The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This crucial legislation aims to address significant financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern that has garnered acknowledgment both locally and internationally.
Kamikamica emphasized the urgent need for improved access to financing, particularly in rural communities where cooperatives have proven effective, especially among the indigenous Taukei population. The initiative aligns with the United Nations’ proclamation that 2025 will be the International Year of Cooperatives, promoting the cooperative model’s role in fostering sustainable development and social advancement.
To bolster the cooperative sector, the Fijian government is committed to modernizing the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act set to be proposed this year. Additionally, a newly approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reflecting the government’s dedication to this vital sector.
Earlier public consultations revealed that many SMEs struggle to obtain traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is likely to yield significant benefits for the broader community and enhance Fiji’s economic resilience. The government’s proactive measures signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
Overall, the progress of this legislation reflects a positive step towards empowering Fiji’s economy and supporting local entrepreneurs.
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