SMSEs grant review
State to ramp up sector
GOVERNMENT grant assistance towards the micro, small and medium enterprises (MSMEs) sector, collectively worth $80million in its current budget, will be reviewed as part of Government’s effort to ramp up the sector.
This was revealed by Ministry of Trade, Cooperatives, Small and Medium Enterprises and Communications permanent secretary, Shaheen Ali at the two-day inaugural MSME Conference in Suva which ended yesterday.
“The ministry will be reviewing its current suite of grant programs,” he said.
“Presently, the Government invests close to $80 million on MSMEs. We believe there is a need to refocus this assistance under MSME Fiji (under the ministry).”
Mr Ali said Fiji’s first MSME Strategic Development Plan, currently in the pipeline, will map existing landscape, including program from Government and donor agencies and provide recommendations to increase assistance to the sector and address existing gaps.
With access to finance being identified as the single biggest hurdle to the development of the sector, the ministry is currently exploring alternative financing options.
“This is to close the $2.2 billion financing gap for MSMEs estimated by the Reserve Bank of Fiji.
“The new Access to Capital Bill will provide for regulations on small offers; equity crowdfunding and peer to peer lending. “
Mr Ali said the Ministry of Trade would also use the upcoming 2024-2025 national budget process to incentivise private sector incubators, accelerators and business development services.
“These sandbox initiatives are essential to create a complete eco-system of support for MSMEs.”