The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This important legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, recognized both locally and internationally.
Kamikamica highlighted the critical need for improved access to finance, especially in rural areas where cooperatives have shown effectiveness, particularly among the indigenous Taukei population. The initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the role cooperative models can play in sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives by proposing amendments to the Co-operatives Act this year. The recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this essential sector.
Public consultations earlier this year revealed that many SMEs struggle to access traditional financing due to factors such as inadequate revenue histories, credit ratings, or collateral, leading to a significant 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 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 increasing optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative could significantly benefit the broader community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation signal a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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