The government has reached a decision to establish a development bank and a finance center in the ground and second floor of the SME Hub building. Businesses in the first floor is set to resume as it is for now while the remaining businesses will be relocated.
The government has decided to establish a development bank and finance center in the SME Hub building which adopts a mini-mall concept managed by Business Center Corporation (BCC).
The building features a small library and City Bakery in the first storey while the kiosks in the second floor are dedicated to cafe's and shops of small local businesses. BCC is also presently working towards building the third storey, which was initially set to house a cinema accommodating 25 people and kiosks dedicated for businesses such as beauty salons.
However, the government has now decided to bring some alteration to the ground and second floor, with a development bank and a finance center set to be established in the respective floors.
Minister of Economic Development and Trade, Mohamed Saeed shared with local media, Mihaaru News today that a decision has been reached to relocate businesses situated in three floors and revealed that the space will then accommodate the development bank and finance center newly proposed by the government.
He said that the small businesses running kiosks at the Hub have been arranged relocation to another premise in the city.
The government's aim is to induce the change without imposing any losses over small businesses, said the Minister, adding that the first floor of the SME Hub building, which features the most number of businesses will resume its current manner of operations without incurring any changes. He assured that the floor will proceed as it currently is until the businesses acquire an alternative location to proceed their activities.
Emphasizing that the government expends around MVR 700,000 on the building for its monthly rent, the Minister revealed that a small fee is extracted from the businesses as rent regardless. He asserted that therefore, the hub is not operated within a sufficient and profitable model.
Saeed further disclosed that rental dues of over MVR 2 million for the building, which was initially owned by State Trading Organization (STO) had remained unsettled prior to the government's takeover of the building.
"[We are] not even close to making sufficient income. Therefore, we are looking to run SME Hub in a more feasible manner, at a lower rent," said Saeed.
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