The Access to Business Funding Bill is poised for approval next week, as announced by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a recent parliamentary session. This significant legislation targets the financial challenges encountered by micro, small, and medium enterprises (MSMEs) and cooperatives, acknowledged as critical issues both within Fiji and on a global scale.
Kamikamica highlighted the vital importance of access to finance for economic empowerment, particularly in rural communities where cooperatives, especially among the indigenous Taukei population, have proven effective. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, emphasizing the role of cooperative models in driving sustainable development and social progress.
The Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected to be introduced this year. Additionally, the recently established Cooperative Development Fund, which has already received parliamentary approval, aims to significantly enhance the operational capacity of cooperatives, reflecting the government’s commitment to bolstering this crucial sector.
Public consultations earlier this year revealed that many SMEs struggle to secure traditional financing options due to inadequate revenue streams, credit histories, and collateral requirements, leading to a substantial funding gap. The Access to Business Funding Bill is designed to address these challenges by introducing alternatives such as a small-offer regime for raising equity capital and facilitating innovative financing avenues, including equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is optimism that it will foster a more inclusive financial environment in Fiji. This initiative has the potential to empower entrepreneurs and contribute to local economic growth, ultimately benefiting the broader community and enhancing the resilience of the Fijian economy. The commitment to reforming the access to finance landscape reflects a hopeful outlook for the future of MSMEs and cooperatives in Fiji, paving the way for a robust entrepreneurial ecosystem capable of sustaining growth and development in the nation.
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