Minister of Economic Development Fayyaz Ismail has expressed his appreciation for the assistance provided by the European Union (EU) to the small and medium enterprises (SMEs) in the Maldives during the COVID-19 pandemic.
Speaking at the EU-Maldives Business Roundtable, Minister Fayyaz described the organisation as an important economic partner and said that assistance from the EU allowed the Maldives to overcome the pandemic. He also noted a large number of tourist visits from EU member countries during the 50 years of the Maldivian tourism industry. He further highlighted the various assistance provided by the EU during the pandemic.
In December 2021, the EU began issuing grant aid for tourism sector SMEs to recover from the COVID-19 pandemic, through the EU Support for a Resilient Recovery of SME Tourism Industry in the Maldives Project. Under the project, the EU dedicated USD2 million to SMEs in the Maldives tourism industry, which aimed to enable a more resilient and diversified economy in the Maldives.
Under the initiative, the EU dedicated USD1.5 million to a direct transfer component, while USD632,000 was allocated towards technical assistance, which will be directed to training programmes for beneficiaries aimed at high-impact areas such as improving business operations, and financial management, sustainable waste management, and creating access to international markets. The technical assistance component also supported the set-up of a system that will act as a strategically important tool that is expected to play a crucial role in retaining value created by the industry and promoting the growth of tourism-related SMEs.