SME Digital has begun accepting applications for the third phase of a financial assistance programme intended to equip Maldivian fishing vessels with refrigerated seawater systems. Officials say the measure will strengthen both sustainability and profitability in the country’s fisheries sector, with support expected to reach 200 vessels.
The programme is the result of a partnership between the Ministry of Fisheries and Ocean Resources, the Lives and Livelihoods Fund and the Islamic Development Bank. Managed through SME Digital, it is structured in accordance with Islamic Shariah standards and combines project financing from the bank, arranged as Installment Sale Financing, with a grant component provided by the fund.
Central to the scheme is a grant covering 35 percent of the purchase price of the system. That amount is deducted directly from the repayment obligation, easing the debt burden for boat owners. SME Digital has described the measure as a rare opportunity to modernise facilities without prohibitive costs. Financing of up to USD 129,740.26 is available per applicant, covering not only the seawater system but also solar panels and generator sets.
The repayment terms are designed to favour fishermen. Applicants are offered a maximum period of 10 years, an annual profit rate of 6 percent, and a grace period of up to six months before repayment begins. Collateral is not required, SME Digital added.
For many boat owners, the initiative addresses longstanding logistical challenges. Badhurudheen Hassan, the chief executive and managing director of SME Digital, said the adoption of refrigerated seawater systems represented a critical advance, eliminating the difficulties of sourcing ice and reducing the considerable costs associated with its procurement.
The programme also reflects broader environmental priorities. With support from the Lives and Livelihoods Fund and the Islamic Development Bank, it seeks to expand the use of renewable energy and reduce carbon emissions during fishing operations.
Earlier phases have already demonstrated results. Financing totalling USD 2.92 million was approved for 35 parties under the first and second rounds, which also targeted the challenges of ice procurement. Those funds are now being disbursed. Officials say the scheme is intended not only to modernise the fishing fleet but also to secure the long-term sustainability of the country’s fisheries industry.