The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that have been recognized both nationally and globally.
Kamikamica emphasized the pressing need for enhanced access to finance, particularly in rural areas where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei community. The initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the vital role cooperative models can play in fostering sustainable economic development and social advancement.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives by proposing amendments to the Co-operatives Act this year. Additionally, the recently established Cooperative Development Fund aims to strengthen the operational capacities of cooperatives, further showcasing the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap, which the Access to Business Funding Bill aims to bridge by introducing innovative financing solutions, including a small-offer regime that lets private companies raise equity capital more easily, along with options for investment-driven crowdfunding like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances toward approval, optimism continues to grow regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative stands to benefit the broader community and enhance the resilience of Fiji’s economy. The proactive measures embodied in this legislation reflect a hopeful commitment by the Fijian government to foster a vibrant entrepreneurial ecosystem capable of nurturing sustained growth and development throughout the nation.
This bill represents a significant step forward for Fiji’s economic landscape, particularly for those historically underserved by traditional banking systems. The government’s focus on alternative funding mechanisms highlights a progressive approach to financial inclusion, underscoring their commitment to cultivating an environment that fosters innovation and entrepreneurship.
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