The Access to Business Funding Bill is set to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation aims to address the crucial financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern Kamikamica highlighted as being pertinent not only locally but globally.
Kamikamica emphasized the importance of access to finance for economic empowerment, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative is timely, aligning with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which seeks to highlight the potential of cooperative models in achieving sustainable economic development.
The Fijian government plans to modernize the legal framework governing cooperatives, aiming to introduce amendments to the Co-operatives Act this year. Additionally, the establishment of the Cooperative Development Fund, recently approved by Parliament, seeks to enhance the operational capacities of cooperatives, showcasing the government’s commitment to supporting economic resilience in this sector.
Public consultations conducted earlier this year revealed significant barriers that many SMEs face when attempting to secure traditional financing, such as insufficient revenue streams, lack of credit history, or collateral, resulting in a notable funding gap. The Access to Business Funding Bill is designed to address these issues by providing innovative financing alternatives—including a small-offer regime that allows private companies to raise equity capital more easily, as well as provisions for crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the legislation moves toward approval, there is a growing optimism that it will foster a more inclusive financial environment in Fiji, empowering entrepreneurs and promoting local economic growth. This initiative not only seeks to resolve the immediate financial barriers faced by MSMEs and cooperatives but also holds the potential to create a dynamic entrepreneurial ecosystem that benefits the broader community and enhances the resilience of Fiji’s economy. With proactive steps being taken by the government, there is hope for a thriving economic future that will positively impact the financial landscape for MSMEs and cooperatives across the nation.
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