The Access to Business Funding Bill is slated for approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who made the announcement during a parliamentary session. This critical piece of legislation aims to address the significant financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, challenges that have been recognized both domestically and internationally.
Kamikamica emphasized the importance of improving access to finance, particularly in rural regions where cooperatives have demonstrated their effectiveness, especially within the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the potential for cooperative models to drive sustainable economic development and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently established Cooperative Development Fund, which has received parliamentary approval, aims to enhance the operational capacities of cooperatives, reinforcing the government’s commitment to this essential sector.
Public consultations conducted earlier in the year revealed that many SMEs face substantial barriers in accessing traditional financing options due to inadequate revenue histories, credit ratings, or collateral, leading to a notable funding gap. The Access to Business Funding Bill seeks 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 provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves toward final approval, there is growing optimism about its potential to create a more inclusive financial environment in Fiji. This legislative initiative aims to empower entrepreneurs and stimulate local economic growth, offering substantial benefits to the broader community and enhancing the resilience of Fiji’s economy. The proactive efforts demonstrated by the government highlight a hopeful commitment to fostering a vibrant entrepreneurial ecosystem that can sustain long-term growth and development throughout the nation.
Leave a comment