The Access to Business Funding Bill is anticipated to gain parliamentary approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant piece of legislation is designed to combat the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged both locally and internationally.
Kamikamica identified the crucial need for enhanced access to financial resources, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the importance of cooperative models in fostering sustainable development and social progress.
To support this sector, the Fijian government is looking to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be proposed this year. Additionally, the recently established Cooperative Development Fund, approved by Parliament, aims to improve the operational capabilities of cooperatives and demonstrates the government’s commitment to this vital sector of the economy.
Public consultations earlier in the year revealed that many SMEs encounter significant barriers in accessing traditional financing due to factors such as insufficient revenue histories, credit ratings, or collateral, which has led to a notable funding gap. The Access to Business Funding Bill seeks to address these challenges by introducing innovative financing solutions, including a small-offer regime that enables private companies to raise equity capital more conveniently and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, optimism is growing regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative could significantly benefit the broader community and enhance the resilience of Fiji’s economy. The proactive measures included in this legislation reflect a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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