The Access to Business Funding Bill is on the verge of approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation is designed to address financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern acknowledged both domestically and internationally.
Kamikamica highlighted the urgency for improved access to finance, particularly in rural areas, where cooperatives have shown effectiveness, especially among the indigenous Taukei population. This legislative initiative aligns with the United Nations’ declaration of 2025 as the International Year of Cooperatives, which aims to promote sustainable development and social progress.
In its efforts to strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, expecting amendments to the Co-operatives Act to be proposed this year. The Cooperative Development Fund, which has recently received parliamentary approval, aims to promote the operational capabilities of cooperatives, reflecting the government’s commitment to this crucial sector.
Recent public consultations indicated that many SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a considerable funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing innovative financing solutions. These include a small-offer regime that simplifies equity capital raising for private companies and provisions for investment-driven crowdfunding, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is growing optimism that it will pave the way for a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield substantial benefits for the wider community and significantly enhance the resilience of Fiji’s economy. The government’s proactive approach signifies a hopeful commitment to cultivating a robust entrepreneurial ecosystem capable of supporting sustainable growth and development throughout the nation.
This bill represents a crucial step forward for MSMEs and cooperatives, indicating an encouraging outlook for economic empowerment and development in Fiji moving forward.
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