The Access to Business Funding Bill is on course for parliamentary approval next week, a development announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This significant legislation is geared towards tackling prevalent financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue that resonates locally and globally.
Kamikamica underscored the urgent need for enhancing access to finance, particularly in rural areas where cooperatives have proven their effectiveness, notably within indigenous Taukei communities. This legislative move syncs with the United Nations’ declaration that 2025 will be observed as the International Year of Cooperatives, highlighting the critical role that cooperative models play in driving sustainable economic development and social advancement.
To bolster the cooperative sector, the Fijian government aims to modernize the legal framework governing cooperatives, with proposed amendments to the Co-operatives Act set for this year. Additionally, a newly established Cooperative Development Fund has recently received parliamentary approval. This fund is intended to significantly enhance the operational capacity of cooperatives, reflecting the government’s ongoing commitment to this vital sector.
Recent public consultations revealed that numerous SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, leading to a significant funding gap. The Access to Business Funding Bill aims to alleviate these challenges through innovative financing solutions, including a small-offer regime designed to facilitate equity capital raising, as well as investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing sense of optimism about its potential to foster an inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is poised to yield considerable benefits for the wider community, enhancing the overall resilience of Fiji’s economy. The government’s proactive steps signal a hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislative effort not only addresses current financial challenges but also promotes a sustainable future for Fiji’s cooperatives, setting a strong foundation for local economies to thrive.
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