The Access to Business Funding Bill is set to be approved by the Fijian government next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, which have been underscored as critical issues both locally and globally.
Kamikamica stressed the importance of improving access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This legislative initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, highlighting the role of cooperative models in fostering sustainable economic and social development.
In support of economic empowerment, the government plans to modernize the legal framework governing cooperatives by proposing amendments to the Co-operatives Act this year. Additionally, the recently established Cooperative Development Fund has garnered parliamentary approval and is expected to significantly enhance the operational capacity of cooperatives across Fiji.
Public consultations indicated that numerous SMEs struggle with traditional financing due to factors like a lack of established revenue streams, credit history, or collateral, which has resulted in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap by enabling companies to access alternative financing methods, including a small-offer regime that allows private companies to raise equity capital more easily, as well as investment-geared crowdfunding options such as equity crowdfunding and peer-to-peer lending.
As the legislation progresses towards approval, there is optimism that it will create a more inclusive financial environment, empowering entrepreneurs and driving local economic growth. This initiative represents a collaborative effort to resolve immediate financial barriers and foster a vibrant entrepreneurial ecosystem, ultimately contributing to a resilient and thriving economy in Fiji.
This bill presents a hopeful opportunity for MSMEs and cooperatives, setting the stage for transformative economic growth that can uplift the community and enhance the sustainability of Fiji’s economic landscape. The proactive measures taken by the government reflect a commitment to nurturing resilience and fostering an environment where local businesses can flourish.
Leave a comment