The Access to Business Funding Bill is on course for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. This crucial legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji—issues recognized both locally and internationally.
Kamikamica emphasized the urgent need for enhanced access to finance, particularly in rural areas where cooperatives have proven effective, especially among indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the vital role that cooperative models can play in promoting sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently established Cooperative Development Fund aims to strengthen the operational capabilities of cooperatives, reflecting the government’s commitment to this essential sector of the economy.
Public consultations conducted earlier this year revealed that numerous SMEs struggle to access traditional financing due to barriers such as inadequate revenue histories, credit ratings, or collateral, creating a notable funding gap. The Access to Business Funding Bill aims to bridge this gap by introducing innovative financing solutions, including a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is mounting optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative is expected to benefit the wider community while enhancing the resilience of Fiji’s economy. The proactive measures outlined in this legislation underscore a hopeful commitment from the Fijian government to cultivate a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development.
This initiative not only addresses immediate financial needs but also positions Fiji towards achieving its economic goals, ultimately enhancing the quality of life for its citizens.
Leave a comment