WB approves USD 15 Mn to reform SOEs, strengthen private sector in Maldives

The World Bank’s Board of Executive Directors on Friday approved a US$ 15 million project to strengthen private participation in and financial sustainability of state-owned enterprises (SOEs) and the mechanisms that support the competitiveness of small and medium enterprises (SMEs) in Maldives, including legal and regulatory frameworks, access to finance, institutional capacity development, and fiscal sustainability support.

“The COVID-19 pandemic and uncertainty in the global environment have had a profound impact on Maldives’ growth trajectory, affecting both state-owned enterprises and small and medium enterprises across the country,” said Faris.

H. Hadad-Zervos, the World Bank Country Director for Maldives, Nepal, and Sri Lanka. This project will help expand economic opportunities for the private sector and introduce critical reforms of state-owned enterprises. This will also contribute over time to enhancing the country’s fiscal health.”

The Maldives Competitiveness and Growth Project aims to help the government enhance private participation in select SOEs, improve the way these enterprises are governed, and reform their public service obligations and subsidies.

This project will also help make Maldives’ private SMEs more competitive by improving digital financial systems to make it easier for them to access commercial loans, and assisting selected innovative and capable SMEs to enhance their growth trajectory and develop new and climate-friendly products to compete in new markets.