The Access to Business Funding Bill is set to be approved by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant legislation is aimed at addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, concerns that have been recognized both locally and internationally.
Kamikamica highlighted the critical need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei population. This initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the importance of cooperative models in promoting sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the newly established Cooperative Development Fund, which has gained parliamentary approval, aims to significantly enhance the operational capabilities of cooperatives, reflecting the government’s commitment to bolstering this vital sector.
Public consultations earlier in the year revealed that many SMEs struggle 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 seeks to bridge this gap by introducing innovative solutions, including a small-offer regime to facilitate easier equity capital raising for private companies and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses towards approval, there is growing optimism that it will create a more inclusive financial environment in Fiji. By empowering entrepreneurs and fostering local economic growth, this initiative holds the potential to benefit the wider community and enhance the resilience of Fiji’s economy. The proactive measures outlined in this legislation reflect a hopeful commitment from the government to develop a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
Overall, this legislative effort is a positive development, poised to transform the financial landscape for MSPs and cooperatives, fostering economic empowerment and resilience in Fiji’s diverse communities.
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