The Access to Business Funding Bill is expected to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This significant legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both nationally and internationally.
Kamikamica highlighted the urgent need for better access to finance, especially in rural areas where cooperatives have demonstrated effectiveness, particularly among the indigenous Taukei population. This initiative aligns with the United Nations’ declaration designating 2025 as the International Year of Cooperatives, emphasizing the essential role that cooperative models can play in driving sustainable development and social progress.
To support this sector, the Fijian government plans to modernize the existing legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, further demonstrating the government’s commitment to this vital area.
Public consultations conducted earlier this year revealed that many SMEs face significant barriers in accessing traditional financing, often due to insufficient revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions that include a small-offer regime for raising equity capital and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is a growing sense of optimism about its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield considerable benefits for the broader community, enhancing the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
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