The Access to Business Funding Bill is set to be approved next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This essential piece of legislation aims to address the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue acknowledged both nationally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural regions where cooperatives have demonstrated their effectiveness, especially among the indigenous Taukei community. This legislative initiative is aligned with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the importance of cooperative models in fostering sustainable economic growth and social progress.
To enhance the operational capabilities of cooperatives, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Furthermore, the newly established Cooperative Development Fund, recently approved by Parliament, underscores the government’s commitment to strengthening this critical sector.
Earlier public consultations revealed that many SMEs face barriers to accessing traditional financing, often due to challenges such as inadequate credit histories, revenue records, or collateral. This situation has resulted in a notable funding gap. The Access to Business Funding Bill aims 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 alternative crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill advances towards approval, there is a growing sense of optimism about its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to substantial benefits for the broader community and strengthen the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation mark a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the country.
This legislation represents a significant step forward in creating a robust framework for financing that not only meets the needs of businesses but also aligns with global efforts to promote cooperative models that enhance both economic and social welfare.
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