The Access to Business Funding Bill is set to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica. This legislation aims to tackle the financial hurdles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a challenge that resonates both locally and on a global scale.
Kamikamica emphasized the critical necessity for improved access to finance, particularly in rural regions where cooperatives have shown significant effectiveness among the indigenous Taukei community. This initiative coincides with the United Nations’ declaration of 2025 as the International Year of Cooperatives, underscoring the role that cooperatives can play in driving sustainable development and social progress.
The government plans to modernize the legal framework governing cooperatives, with changes to the Co-operatives Act expected to be introduced this year. Additionally, a new Cooperative Development Fund, recently approved by Parliament, will enhance the operational abilities of cooperatives while reinforcing the government’s commitment to this vital sector.
Public consultations revealed that many SMEs encounter considerable difficulties accessing traditional financing due to barriers such as insufficient revenue histories, credit ratings, and collateral requirements, leading to a notable funding gap. The Access to Business Funding Bill aims to bridge this gap through innovative financing solutions, which include a small-offer regime allowing private companies to raise equity capital more efficiently, along with provisions for investment-driven options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is growing optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the wider community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation are a hopeful commitment from the government to nurture a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
Leave a comment