The Access to Business Funding Bill is poised for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation seeks to address the pressing financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—an issue recognized locally and globally.
Kamikamica highlighted the critical need for improved access to finance as a means of economic empowerment, particularly in rural regions where cooperatives, especially among the indigenous Taukei population, have proven effective. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the importance of cooperative models in promoting sustainable social and economic development.
To reinforce the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, a Cooperative Development Fund, which has recently gained parliamentary approval, is set to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to strengthening this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to secure traditional financing due to factors such as inadequate revenue histories, lack of credit ratings, or insufficient collateral, which has led to a significant funding gap. The Access to Business Funding Bill aims to address these challenges by introducing innovative financing options, including a small-offer regime that enables private companies to raise equity capital more easily, alongside investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward approval, there is growing optimism that it will foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to benefit the wider community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to create a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
In conclusion, the Access to Business Funding Bill represents a significant step forward for the Fijian government in addressing the financial needs of MSMEs and cooperatives, setting the stage for transformative economic opportunities across the nation.
Leave a comment