The World Bank has granted a total of USD 67.8 million (MVR 1 billion) to the Maldives government to enhance state-owned enterprises (SOEs), support small and medium enterprises (SMEs), and develop the fisheries sector.
During a signing ceremony at the Ministry of Finance, the agreements were signed by Minister of Finance Ibrahim Ameer on behalf of the Maldives government, and Faris H. Hadad-Zervos, the Country Director for the Maldives, Nepal, and Sri Lanka at the World Bank. Two separate agreements were signed as part of this initiative.
The first agreement worth USD 53 million (MVR 814 million) was extended towards the improvement of the fisheries sector. This funding will support activities such as data collection, research, information exchange, and the improvement of regional connectivity among countries. It aims to strengthen the safety and security of the industry while also addressing commercial competitiveness challenges. The project will also focus on women empowerment by providing training to 40,000 individuals. The Indian Ocean Commission will lead the implementation of the project in collaboration with the Maldives' Ministry of Fisheries, Marine Resources, and Agriculture.
The second agreement worth USD 15 million (MVR 231 million) will be extended under the Maldives Competitiveness Growth Project (MCGP) This funding will focus on supporting crucial reforms for state-owned enterprises (SOEs) and enhancing the competitiveness of small and medium enterprises (SMEs). As part of this initiative, over 40,000 registered SMEs will have the opportunity to apply for loan schemes, facilitated through digital infrastructure.
Minister Ameer said that the grants will support SOE reform and economic diversification in the Maldives.
"Through these projects, businesses will benefit from expanded opportunities. Our fisheries industry will undergo significant reforms and improvements, ensuring long-term financial and economic stability," said Minister Ameer.
Hadad-Zervos, the World Bank Country Director for the Maldives, Nepal, and Sri Lanka, emphasized the significance of economic diversification and the need for enhancing tourism sector facilities in the future.
"The Maldives has a prospective aim to further diversify its economy, implement reforms in economic sectors, and build a resilient economy capable of mitigating the negative impacts of climate change and financial crises. These projects will assist the Maldives in achieving these objectives," Hadad-Zervos said.
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