MoU signed with Chinese company to establish AEZ in the Maldives

Maldives Industrial Development Free Zone (MID) under State Trading Organization (STO) and China Harbor Engineering Company Limited signed a Memorandum of Understanding (MoU) yesterday to establish an Agriculture Economic Zone (AEZ) in the Maldives by reclaiming land from Uthuru Thila Falhu (UTF) for sustainable agriculture purposes.

The MoU was signed by STO Managing Director, Shimad Ibrahim, and Mao Bao the Country Manager of China Harbor Engineering Company Limited, at a ceremony held at the STO Trade Centre.

China Harbor Engineering Company Limited is the company that constructed the Sinamale’ Bridge.

In a statement by MID, it was stated that this initiative is part of President Dr. Mohamed Muizzu’s efforts to ensure food security in the Maldives that aligns with his vision for the country.

According to MID, the MoU and the subsequent agreement based on it will be an important step forward in the Maldives’ efforts to enhance food security, stimulate economic growth and decrease the dependency on imported food.

The company noted that the Maldives encounters significant challenges in ensuring food security, with the main issue being the nation’s reliance on imported food. Approximately 90 percent of the food consumed in the Maldives is imported, with fish being the only exception that does not rely on imports.

According to the company, ensuring food safety is imperative, particularly since imported food items include basic commodities. Historically, the Maldives encounters its biggest challenge in food security owing to its geographical layout and lack of agricultural land.

The statement noted that the agreement to develop an AEZ marks a crucial step in addressing these challenges and guaranteeing food security in the Maldives.

President Dr. Mohamed Muizzu announced the launch of the AEZ development in the Maldives following the signing of agreements with the Chinese government during his official visit to China.

Details of the AEZ Project:

- Land reclamation - Primary infrastructure development

- Construction of an agricultural industrial park

- Construction of passenger and freight terminals

- The project will include a fruit and vegetable production base

- Establishment of an agricultural talent training base

- The project will include an Agricultural Logistics Distribution Centre

“This means that farmers, processors and distributors will have a one-stop solution with the necessary equipment required”, the company said.

The AEZ is a special area developed to increase agricultural productivity and promote the agricultural industry through the necessary support and infrastructure.

AEZs play an important role in countries where modern agricultural technology is utilized to ensure food security and boost export revenues.