The Access to Business Funding Bill is anticipated to receive approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This legislation aims to address critical financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue recognized both locally and internationally.
Mr. Kamikamica highlighted the urgent need for enhanced access to finance, especially in rural regions where cooperatives have demonstrated effectiveness among the indigenous Taukei populations. 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 economic growth and social advancement.
To strengthen 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. Additionally, the Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations earlier this year revealed that many SMEs struggle to access traditional financing due to barriers such as insufficient revenue histories, credit ratings, or collateral, leading to a substantial funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing solutions, including a small-offer regime that allows private companies to raise equity capital more easily, as well as investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward approval, optimism is growing that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative has the potential to yield significant benefits for the broader community and enhance the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation demonstrate a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This initiative is not only a crucial step towards improving financial accessibility for small businesses but also represents a move towards sustainable economic empowerment, particularly for rural communities that rely heavily on cooperative business models.
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