The Access to Business Funding Bill is set to be approved by next week, as confirmed by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary announcement. This significant legislation is aimed at addressing the crucial financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern that is recognized both locally and internationally.
Kamikamica highlighted the pressing need for enhanced access to finance, particularly in rural areas where cooperatives have proven effective, especially among indigenous Taukei communities. This initiative is in alignment with the United Nations’ designation of 2025 as the International Year of Cooperatives, which underscores the vital role that cooperative models can play in sustainable development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with anticipated amendments to the Co-operatives Act this year. Additionally, the recently established Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to this essential economic sector.
Public consultations conducted earlier this year revealed that many SMEs encounter significant barriers in accessing traditional financing options due to issues like inadequate revenue histories, credit ratings, or collateral, which has led to a considerable funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing alternative financing solutions, including a small-offer regime to facilitate the raising of equity capital for private companies and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is a growing sense of optimism regarding its potential to foster a more inclusive financial environment in Fiji. Empowering entrepreneurs and promoting local economic growth could lead to substantial benefits for the wider community and enhance the resilience of Fiji’s economy. The government’s proactive measures represented in this legislation signify a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem, capable of supporting sustained growth and development throughout the nation.
Summary: The Access to Business Funding Bill, set for approval next week, aims to help MSMEs and cooperatives in Fiji by improving access to finance, especially in rural areas. This initiative is aligned with the UN’s International Year of Cooperatives and includes plans to modernize cooperative laws and establish a Cooperative Development Fund. By introducing alternative financing options, the bill hopes to bridge the funding gap for SMEs and stimulate local economic growth, demonstrating the Fijian government’s commitment to fostering a supportive entrepreneurial environment.
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