Deputy Prime Minister and Minister for Trade, Manoa Kamikamica says the Government is keen to help ignite private sector led development that is sustainable and resilient.
Highlighting this at the Drua Innovation Small Grants Scheme Prize Event, Kamikamica said the financial sector cannot support most innovative MSMEs and start-ups until they are cash positive and able to pay back equity or debt investments and these businesses and start up cannot be cash positive without access to much-needed seed funding.
The Deputy Prime Minister said a recent study found that women-owned businesses present a substantial yet largely untapped market for financial institutions targeting MSMEs in Fiji, as they account to 19 per cent of local MSMEs and have unmet credit demand of US$111 million.
He said this credit gap comprises an unmet demand for formal credit of US$75 million and a potential demand of US$36 million from the informal sector and the Government is working with the UNDP and UNESCAP to develop a National MSME Strategy that will be the blueprint for MSME sector development in the medium term and help guide policy decision in Government.
Kamikamica said Government has completed a technical review together with the World Bank of the National MSME Credit Guarantee Scheme that was administered by the Reserve Bank of Fiji.
He said it plans to bring back a new and improved version of the scheme to de-risk lending to MSMEs.
Kamikamica also mentioned that the Ministry of Women and Social Protection is working with UNDP to explore a possible Gender Bond issuance similar to the recent and successful Blue Bond issuance that will be targeted towards creating de-risking instruments for women led business.
“Much is being done to help the MSME sector reach its potential and be the engine for economic growth and social development,” Kamikamica said.
