The Access to Business Funding Bill is anticipated to receive parliamentary approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This key legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—an issue recognized on both local and international levels.
Kamikamica underscored the pressing need for improved access to finance, particularly in rural regions where cooperatives have proven effective, notably among the indigenous Taukei community. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, highlighting the vital role these cooperative models can play in advancing sustainable development and social progress.
To enhance the cooperative sector, the Fijian government is set to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act expected this year. Additionally, the recently approved Cooperative Development Fund is intended to bolster the operational capabilities of cooperatives, reflecting the government’s ongoing commitment to this essential sector.
Recent public consultations revealed that numerous SMEs struggle to access traditional financing due to barriers such as lack of revenue histories, inadequate credit ratings, and collateral requirements, leading to a substantial funding gap. The Access to Business Funding Bill aims to close this gap by introducing innovative financial solutions. These include a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is an increasing sense of optimism regarding its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative promises to deliver significant benefits to the wider community, ultimately enhancing the resilience of Fiji’s economy. The government’s proactive initiatives, as reflected in this legislation, signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
Summary: The Access to Business Funding Bill is set for approval in Fiji next week, aiming to address financial challenges faced by MSMEs and cooperatives. It emphasizes improved access to finance, particularly for rural cooperatives, and aligns with the UN’s 2025 International Year of Cooperatives. The government plans to modernize cooperative legislation and has approved a fund to enhance cooperative operations. Public consultations highlighted significant financing barriers for SMEs, which the bill seeks to bridge through innovative solutions. There is growing optimism regarding its potential to empower entrepreneurs and stimulate economic growth in Fiji.
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