The Access to Business Funding Bill is on track for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant piece of legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, which have been recognized as critical issues both locally and globally.
Kamikamica emphasized the importance of access to finance for economic empowerment, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei population. The timing of this legislative initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the potential of cooperative models as sustainable approaches to economic development.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the Cooperative Development Fund, recently approved by Parliament, seeks to enhance the operational capacity of cooperatives, reflecting the government’s commitment to fostering economic resilience in this sector.
Recent public consultations highlighted that many SMEs struggle to access traditional financing due to insufficient revenue streams, lack of credit history, or collateral requirements, leading to a significant funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing options, including a small-offer regime that allows 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 legislation progresses toward approval, there remain high hopes that it will cultivate a more inclusive financial landscape in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative has the potential to contribute positively to the broader community and enhance Fiji’s economic resilience. The government’s proactive approach signifies a hopeful future for MSMEs and cooperatives, offering them the necessary tools to thrive in a dynamic economic environment.
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