The government has announced plans to increase the import duty on easily grown local produce, throughout 2022.
This was announced during the presidential address, delivered by President Ibrahim Mohamed Solih during the inaugural sitting of the People’s Majlis on Thursday morning.
Highlighting that the government has disbursed a total of MVR 16.4 million to farmers through the SME bank to date, the president announced the plan to increase the import duty for produce that may be easily grown locally, within the ongoing year.
As such, the government aims to increase local produce and profits within the island nation.
Highlighting that agriculture is one of the sectors that tops the list accorded highest priority under the government’s initiative to expand the economy, President Solih revealed that the government established a company titled AgroNat, for this purpose.
To date, AgroNat has contracted 704 farmers in 68 islands of which the produce of 163 farmers is currently bought by AgroNat and sold in markets.
The president added that although this is still in the early stages, the government remains hopeful that all farmers will stand to benefit as the initiative progresses.
President Solih highlighted that small and medium-sized enterprises make up the backbone of any country’s economy, highlighting that the number of locals engaged in profit-generating ventures have grown. These include married persons as well as members of the youth who are inspiring hope for a brighter future for the Maldives.
It used to be that ventures would shut as soon as they started; shops would be boarded up and closed down within a month of opening. This happened because there was no lifeline for businesses to grab on to. Our government has taken the first step in providing this lifeline by introducing the SME Bank”Ibrahim Mohamed Solih, President of Maldives
Shedding light on the success of the SME Bank, the president stated that the government wants to see more small businesses flourishing across the nation as it is the “greatest” thing a government can do for the economy of the country.
Noting that the target set to be achieved through the SME Bank is nowhere close to being achieved, the president noted that the bank has issued MVR 739 million in loans to 741 businesses spanning across every atoll in the Maldives so that there can be small businesses flourishing in some 144 different islands of the archipelago nation.
In his address, the president noted that the government prioritizes the incorporation and ensuring of all-inclusiveness in economic development, with which he stated that 25 percent of loans that are issued will be solely dedicated to women, youth and persons with disabilities.
With this being said, President Solih noted that the state will not be empowered in the absence of empowerment of women in the sectors of politics and economy as well as the social sector.
President Solih went on to stress that local talents and businesses must be provided more access to international markets, adding that the global payment gateway is a barrier that excludes locals from these potential markets.
The president pledged to launch efforts towards removing this barrier and open the payment gateway so that local talents and brand can be made accessible to the rest of the globe.
