State Trading Organization Tells a Tale of 56 Years Old
Remember when the State Trading Organization (STO) operated under the name Athireemaafannu Trading Agency (ATA)? Oh, you don’t? Well, neither do I, because it was like, 56 years ago and I was not born.
In the early 1960s, the socioeconomic outlook of Maldives was not promising at all. Whilst the country had a population about 100k people, the only communication with the outside world was through Morse Code and the ham radio. The only airstrip was the one laid by the British RAF and the mode of transport between islands was construed to tradition sail boats. Pretty much the only resource available was tuna and consumers were entirely at the mercy of importers. Hence, even the most basic food items were expensive. Moreover, a banking service did not exist in the country. Development was slow with no available funds for major investments and no commercial industry existed.
Therewith, it became more apparent that a central organization to import goods necessary to raise the living standards and encourage development was extremely crucial. Hence, in 1964, a fully state-owned company was set up with the key mission to strengthen national food security; Athireemaafannu Trading Agency (ATA). The company undertook the task of purchasing and importing essential food items in bulk to be distributed nationwide via local traders & their own retail outlets. ATA sold its imports to the public at low mark-up and also purchased supplies for the government.
ATA is the beginning of STO, and a catalyst for change in the Maldives. The company then matured to become the State Trading Organization (STO) on 9th June 1979, with proven success in contribution to national development. Following this, STO undertook all trading and commercial activity on behalf of the Maldivian government. With a growing nation with growing demands, STO eventually stretched its imports by firstly increasing number of commodity items, and then on to modern construction materials, home appliances and consumer goods.
During this time, the country’s economy started to pick up speed, fueled by increasing commercial activity mainly in fisheries, agriculture, tourism and construction industries. The company expertly responded to this by looking beyond its traditional role of state trader and began to take up alternative enterprises to earn foreign exchange and broaden the nation's revenue sources.
Building up on the background of solid commercial success, STO has streamlined its operations to where profit and viability matter as much as the need to ensure broad access to basic essentials at affordable prices.
STO group, with its subsidiaries, joint ventures and associates stands testament to the country's economic potential. Presently, the company has significant and focused interests in petroleum, cooking gas, construction materials (including cement and roofing material), medical supplies and pharmaceuticals, home appliances, electronics, supermarket products and insurance.
Whilst they celebrate their 56th anniversary today, STO has set new focus to make a splash in the tourism sector.
We congratulate STO on reaching this milestone and wish them well in all their future endeavors!
Photos: STO PLC