The Access to Business Funding Bill is anticipated to gain approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This pivotal legislation aims to address the significant financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a challenge that has gained both national and international attention.
Kamikamica underscored the urgent necessity for enhanced access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among indigenous Taukei communities. The initiative coincides with the United Nations’ recognition of 2025 as the International Year of Cooperatives, highlighting the critical role cooperative models can play in driving sustainable economic development and social progress.
In a bid to bolster the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected later this year. A recently established Cooperative Development Fund, which has been approved by Parliament, aims to significantly improve the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to obtain traditional financing due to barriers such as inadequate credit histories, revenue streams, or collateral, contributing to a substantial funding gap. The Access to Business Funding Bill seeks to bridge this gap through innovative financing solutions. It introduces a small-offer regime that facilitates easier equity capital raising for private companies and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is growing optimism about its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative could lead to significant benefits for the broader community and enhance the resilience of Fiji’s economy. The proactive measures reflected in the legislation indicate a hopeful commitment from the government to cultivate a thriving entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Leave a comment