The Access to Business Funding Bill is expected to be approved next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This critical legislation aims to tackle the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have been recognized both locally and internationally.
Kamikamica emphasized the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative is in alignment with the United Nations’ recognition of 2025 as the International Year of Cooperatives, highlighting the potential of cooperative models to facilitate sustainable development and social progress.
In further support of the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be introduced this year. Additionally, the newly established Cooperative Development Fund, recently approved by Parliament, aims to significantly enhance the operational capabilities of cooperatives.
Previous public consultations conducted throughout the year revealed that many SMEs struggle to access traditional financing options due to obstacles such as inadequate revenue histories, credit ratings, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates easier 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 renewed sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this legislative initiative promises to have a positive impact on the wider community and enhance the overall resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
In summary, the Access to Business Funding Bill represents a significant step towards providing critical support for Fiji’s MSMEs and cooperatives, addressing the barriers they face in securing financing, and paving the way for a more robust economic future.
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