The Access to Business Funding Bill is scheduled for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, in a recent parliamentary session. This significant legislation aims to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both nationally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives have demonstrated effectiveness, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, reinforcing the important role that cooperative models can play in driving sustainable economic growth and social progress.
The Fijian government also plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Additionally, the recently established Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to this crucial sector.
Earlier public consultations revealed that many SMEs encounter significant barriers to accessing traditional financing options due to factors like inadequate revenue histories, credit ratings, or collateral. This has contributed to a substantial funding gap that the Access to Business Funding Bill seeks to address through innovative financing solutions including a small-offer regime that facilitates equity capital raising and provisions for equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is growing optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is expected to yield positive outcomes for the wider community and enhance the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation signify a hopeful commitment from the government to foster a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This legislative effort represents a critical step forward in creating equitable access to finance for all, especially in marginalized communities. It holds the promise of establishing lasting economic empowerment through innovative funding mechanisms that can benefit Fiji’s diverse entrepreneurial landscape.
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