The Access to Business Funding Bill is set for approval next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This crucial legislation aims to address the significant financial barriers faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that are recognized both locally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives, especially among the indigenous Taukei, have shown their effectiveness. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, underscoring the vital role of cooperative models in promoting sustainable economic development and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently established Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector.
Recent public consultations have revealed that many SMEs are struggling to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative financing solutions, including a small-offer regime to help private companies raise equity capital more easily and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves forward, there is growing optimism about its potential to foster a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to positively impact the broader community and enhance the resilience of Fiji’s economy. The government’s proactive steps reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislation presents a significant opportunity for economic empowerment in Fiji, particularly for rural communities and cooperatives, thus paving the way towards a more equitable and prosperous future.
Leave a comment