The Access to Business Funding Bill is poised for approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who made the announcement during a parliamentary session. This important legislation aims to tackle the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues that have garnered attention both nationally and internationally.
Kamikamica highlighted the critical need for improved access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the role of cooperatives in promoting sustainable economic 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 expected this year. Furthermore, a newly established Cooperative Development Fund, recently approved by Parliament, aims to strengthen the operational capabilities of cooperatives, reinforcing the government’s commitment to this vital sector.
Public consultations conducted earlier in the year revealed that many SMEs face significant barriers to accessing traditional financing, often due to inadequate revenue histories, credit ratings, or collateral, resulting in a substantial funding gap. The Access to Business Funding Bill seeks to address these challenges through innovative financing solutions. This includes a small-offer regime that facilitates private companies in raising equity capital more easily and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances towards approval, there is a burgeoning sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield positive outcomes for the broader community and enhance the overall resilience of Fiji’s economy. The proactive steps reflected in this legislation signify a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
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