The Government of Maldives and the World Bank signed two agreements totalling USD 67.8 million on Sunday to support critical reforms to state-owned enterprises (SOEs), and to strengthen competitiveness of small and medium enterprises (SMEs) and the fisheries sector in Maldives.

The agreements were signed at the Ministry by Finance Minister Ibrahim Ameer, and World Bank Country Director for Maldives, Nepal and Sri Lanka, Faris H. Hadad-Zervos.

Speaking at the ceremony, Minister Ameer said the administration is working on a comprehensive plan to improve the functioning of state-owned enterprises and diversify the economy.

“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,” Minister Ameer said.

The Transforming Fisheries Sector Management in South-West Indian Ocean Region and Maldives Project (TransFORM) project is valued at USD 64.8 million, of which USD 52.8 million is allocated to Maldives, to improve the fisheries management in the South-West Indian Ocean (SWIO) Region.

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. The project aims to support other SWIO island nations and make Maldives a regional leader by providing knowledge and assistance.

The $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. The MCGP 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. The project will also provide support to selected innovative SMEs to help them grow and develop new environmentally friendly products that can compete in emerging markets.

“Over the years, Maldives has leveraged its beauty and natural assets to drive its impressive growth primarily through tourism,” Faris. H. Hadad-Zervos said.

He added that Maldives' 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 TransFORM project will be implemented by the regional Indian Ocean Commission and Maldives’ Ministry of Fisheries, Marine Resources and Agriculture. The MCGP project will be implemented by the Ministry of Finance.