Maldives & World Bank Sign Two Financing Agreements

The Maldives and the World Bank’s International Development Association (IDA) have signed two financing agreements, with a total funding value of MVR 1 billion (approximately USD 67 million). The granted funds will be used to finance the Maldives Competitiveness and Growth Project (MCGP) and the Transforming Fisheries Sector Management in South-West Indian Ocean and Maldives (TransFORM) Project.

At a signing ceremony held in the Ministry of Finance of Maldives, the agreements were signed between the Minister of Finance, Ibrahim Ameer and the World Bank Group’s Country Director for the Maldives, Nepal, and Sri Lanka, Faris H. Haded-Zervos. The event was attended by senior officials from both the ministry and the Maldives Monetary Authority (MMA).

The first financing agreement, worth MVR 814 million, will be utilized to advance and develop the fisheries sector of the Maldives, which will help to diversify the economy and reduce the vulnerability of relying solely on tourism. The TransFORM project will focus on sharing knowledge and data to make informed decisions and strengthen the Maldives’ capacity to govern and protect the fisheries sector and take greater sides in regional cooperation.

Additionally, the project will also promote sustainable and inclusive practices to expand the industry, remove challenges to business competition and will train a minimum of 40,00 people from coastal communities, with a special emphasis given to increasing the involvement of women in the fisheries sector. The project will be jointly implemented by the Indian Ocean Commission and the Fisheries Ministry of Maldives.

The second financing agreement will support critical fiscal reforms in State-Owned Enterprises (SOEs) and boost the competitiveness of the private sector and Small & Medium Enterprises (SMEs) in the fisheries sector of the Maldives. The MVR 231 million loan and grant will be used to increase private sector participation in fisheries and strengthen the financial sustainability of SOEs.

Moreover, the project will also focus on expediting SOE reforms through technical assistance,
facilitate policy development and business planning and aid in carrying out evaluation and due diligence processes. SMEs will also benefit from the project by increasing their competitiveness through several mechanisms such as enhancing digital financial infrastructure, promoting financial literacy and technology adoption and driving business-intensive support programs.