The Access to Business Funding Bill is set to receive approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This influential legislation aims to address the critical financial accessibility challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives, which Kamikamica identified as pressing issues both in Fiji and worldwide.
Kamikamica emphasized the cooperative sector’s significant role in promoting economic empowerment, particularly among rural communities, including the indigenous Taukei population. The upcoming bill arrives in conjunction with the United Nations’ designation of 2025 as the International Year of Cooperatives, bringing additional international focus to cooperative models as effective pathways for sustainable development.
Plans are underway to modernize the legal and policy framework governing cooperatives, with amendments to the Co-operatives Act anticipated in the current year. Furthermore, the recent approval of the Cooperative Development Fund is expected to bolster the cooperative sector, enabling cooperative entities to expand operations effectively.
Previous public consultations on this bill have revealed that numerous SMEs in Fiji struggle with traditional financing solutions due to inadequate revenue history, lack of creditworthiness, or collateral. This gap highlights the urgent need for alternative financing options. The Access to Business Funding Bill seeks to bridge this divide by facilitating small-offer regimes for raising equity capital and introducing investment-geared crowdfunding methods, such as equity crowdfunding and peer-to-peer lending.
As this legislative effort progresses, it is hailed as a proactive step toward fostering a more inclusive financial landscape in Fiji. By enhancing access to funding for MSMEs and cooperatives, the bill not only aims to support individual businesses but also to contribute to the overall resilience and sustainability of the Fijian economy. The hope is that these reforms will empower entrepreneurs and invigorate local economies, ultimately benefiting the wider community and supporting long-term economic growth.
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