The Access to Business Funding Bill is scheduled to receive approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This significant piece of legislation aims to address the financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural regions where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative is timely, coinciding with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underscoring the vital role that cooperative models can play in promoting sustainable economic growth and social advancement.
To enhance 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. The recently established Cooperative Development Fund, which received parliamentary approval, aims to bolster the operational capabilities of cooperatives and reinforce the government’s commitment to this essential sector.
Public consultations conducted earlier this year revealed that many SMEs struggle with accessing traditional financing options due to barriers such as inadequate revenue histories, credit ratings, or collateral, creating a significant funding gap. The Access to Business Funding Bill is designed to bridge this gap by introducing innovative financing solutions, including a small-offer regime that would allow private companies to raise equity capital more easily, along with provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is growing optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and promoting local economic growth, this initiative has the potential to create substantial benefits for the wider community and enhance the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation embody a hopeful commitment from the government to nurture a thriving entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislative effort represents a positive step towards bridging the financial gap faced by many small businesses and cooperatives, potentially leading to a brighter economic future for Fiji.
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