The government and the World Bank have signed two agreements totalling MVR 1 billion (USD 67.8 million) to support critical reforms to state-owned enterprises (SOEs) and to strengthen the competitiveness of small and medium enterprises (SMEs) and the fisheries sector.
Finance minister Ibrahim Ameer and World Bank Country Director for Maldives, Nepal and Sri Lanka Faris H. Hadad-Zervos signed the agreement on Sunday.
“The Maldivian government is working on a comprehensive plan to improve the functioning of state-owned enterprises and diversify our economy,” Ameer said during the signing ceremony.
“These two projects will help create more opportunities for businesses, strengthen our successful fisheries industry, and bring about important reforms that ensure our long-term financial and economic stability.”
The Transforming Fisheries Sector Management in South-West Indian Ocean Region and Maldives Project (TransFORM) is a USD 64.8 million initiative, out of which $52.8 million is allocated to Maldives, aimed at improving fisheries management in the South-West Indian Ocean (SWIO) Region.
According to a press release from the World Bank, the project focuses on sharing knowledge and data to make better decisions and strengthening the country's ability to govern and protect the fisheries sector.
It aims to support other SWIO island nations and make Maldives a regional leader by providing knowledge and assistance. Maldives and 11 other countries border the waters of the south-west Indian ocean – the island nations of Comoros, La Réunion (France), Madagascar, Mauritius, and Seychelles; and six mainland countries: Kenya, Mozambique, Somalia, South Africa, Tanzania, and Yemen.
“Over the years, Maldives has leveraged its beauty and natural assets to drive its impressive growth primarily through tourism,” said Faris. H. Hadad-Zervos.
“The country's aim moving forward is to evolve this growth through greater diversification, transformation within sectors, and resilience against climactic and fiscal shocks. These projects will contribute to that aim."
The USD 15 million Maldives Competitiveness and Growth Project (MCGP) aims to assist in encouraging greater private sector participation in the economy and in enhancing the management and operation of specific SOEs.
It aims to make the 40,000 registered SMEs in Maldives more competitive by improving digital financial systems to make it easier for them to access loans.
It will also provide support to selected innovative SMEs to help them grow and develop new environmentally friendly products that can compete in emerging markets, encouraging other existing small businesses and potential entrepreneurs to develop and contribute to a vibrant SME ecosystem.
