The recent enactment of the Access to Business Funding Act marks a significant advancement in financing options for Micro, Small, and Medium-sized Enterprises (MSMEs) in Fiji. Developed through a partnership between the Ministry of Trade, Co-operatives, Micro, Small and Medium Enterprises, the Reserve Bank of Fiji (RBF), and the Asian Development Bank’s Pacific Private Sector Development Initiative (PSDI), this legislative framework introduces innovative funding avenues such as crowdfunding and peer-to-peer lending.
Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, hailed the Act as a pivotal initiative that not only opens up alternative financing sources but also positions Fiji as an attractive investment destination. He emphasized the potential of this new legislation to help stimulate the local economy by fostering the growth of MSMEs.
RBF Governor Ariff Ali highlighted the advantages of these financing platforms, which are expected to simplify access to funding for MSMEs, further enabling them to enhance their contributions to the national Gross Domestic Product (GDP). Currently, the contribution of MSMEs in Fiji stands at approximately 18 percent, significantly lower than the 40 percent average seen in other emerging market economies.
The Act is the result of extensive consultations with a broad spectrum of stakeholders, including private sector representatives, financial institutions, and civil society organizations. This collaborative approach ensures that the legislation effectively meets the financial needs of both investors and MSMEs, aligning with Fiji’s National Development Plan 2025-2029 and Vision 2050.
This legislative milestone inspires optimism for entrepreneurship within Fiji, suggesting a future marked by enhanced financial autonomy and business resilience. The initiative demonstrates a strong commitment to building a thriving economic landscape that promotes sustainable growth and empowers local communities.
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