The Access to Business Funding Bill is on track for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica in Parliament. This important legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, an issue recognized as critical both in Fiji and globally.
In his remarks, Kamikamica underlined the need for improved access to finance, particularly in rural areas where cooperatives have proven instrumental, especially among the indigenous Taukei communities. This initiative holds significance as it aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the cooperative model’s potential role in fostering sustainable economic and social development.
To support economic empowerment, the Fijian government plans to modernize the legal framework governing cooperatives by introducing amendments to the Co-operatives Act this year. Furthermore, the Cooperative Development Fund, recently approved by Parliament, aims to bolster the operational capacity of cooperatives significantly.
Public consultations recently revealed that many SMEs encounter difficulties accessing traditional forms of financing due to factors such as inadequate revenue streams, lack of credit history, or insufficient collateral, culminating in a significant funding gap. The Access to Business Funding Bill proposes innovative solutions to bridge this gap, including a small-offer regime that allows private companies to raise equity capital more easily, as well as investment-geared crowdfunding options like equity crowdfunding and peer-to-peer lending (P2PL).
As this bill moves toward approval, there is growing optimism that it will foster a more inclusive financial environment in Fiji, empowering entrepreneurs and driving local economic growth. This proactive approach indicates a commitment to enhancing access to finance for MSMEs and cooperatives, paving the way for a more vibrant entrepreneurial ecosystem that benefits the broader community and strengthens the resilience of Fiji’s economy.
These initiatives not only aim to resolve immediate financial barriers but also set a hopeful foundation for sustainable economic growth, showcasing the government’s responsiveness to the needs of its entrepreneurial sector.
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