The Access to Business Funding Bill is expected to receive approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This important legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, which have become critical issues both domestically and internationally.
Kamikamica highlighted the significance of improved access to financing for economic empowerment, particularly in rural areas where cooperatives, especially among the indigenous Taukei communities, have demonstrated effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the cooperative model’s potential to drive sustainable development and social progress.
To bolster the cooperative sector, the Fijian government plans to modernize the legal framework by proposing amendments to the Co-operatives Act this year. In addition, a recently established Cooperative Development Fund, which has gained parliamentary approval, seeks to enhance the operational capacity of cooperatives nationwide.
Public consultations earlier in the year revealed that many SMEs encounter difficulties in accessing traditional financing due to factors such as lack of established revenue streams, credit histories, or collateral, resulting in a significant funding gap. The Access to Business Funding Bill aims to tackle these challenges by introducing innovative solutions. It includes a small-offer regime that allows private companies to easily raise equity capital and facilitates investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As this legislation progresses towards approval, there is growing optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, the initiative holds substantial promise for the broader community and the overall resilience of Fiji’s economy. The government’s proactive approach in reforming access to finance reflects a hopeful outlook for the future of MSMEs and cooperatives in Fiji, paving the way for a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
This legislative advancement is a significant step in addressing the needs of the MSME sector, offering a bright prospect for transformative economic opportunities across Fiji’s diverse communities.
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