The European Union (EU) has provided USD 2.3 million as grant aid to support the project conducted by the Maldives Fund Management Corporation (MFMC) for the recovery of Small and Medium Enterprises (SMEs) in the Maldives tourism industry.
The agreement was signed by Ambassador of the European Union to the Maldives Denis Chaibi and Managing Director of MFMC Hassan Manik.
The event was attended by the Minister of Economic Development Fayyaz Ismail and Minister of Tourism Dr. Abdulla Mausoom. At the event, Economic Minister Fayyaz said the EU has been a key contributor to the Maldives economy over the years and that the grant will be crucial to the recovery of SMEs.
The project aims to create a more resilient and diversified economy in the Maldives by providing financial support to SMEs in the tourism sector, such as guesthouses and safaris, which faced disruptions following the outbreak of the COVID-19 pandemic. The project will provide a USD 1.6 million direct transfer and USD 700,000 for technical assistance directed to training programmes aimed at high-impact areas such as improving business operations, financial management, sustainable waste management, and creating access to international markets.
Furthermore, the technical assistance component will also support the set-up of an OTA system which 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 MSMEs.
The project aims to provide assistance to around 600 SMEs and will accept businesses with a valid operating license at the start of the COVID-19 pandemic.