BOOSTING IMPORTS FOR DISTANT MALDIVES
Trade finance plays a critical role in ensuring basic commodities reach the people who need them the most — especially in remote areas during times of crisis. In 2022, the OPEC Fund provided US$323 million to partners worldwide.
One of the main government strategies is to reduce the cost of utilities and expand and improve transportation within the country. Thanks to this innovative financing, we have been able to pass on price reductions to our end customers. Lower costs for transportation, staple foods and utilities have ultimately led to a higher standard of living in the country.
The Maldives archipelago, a “garland of islands” in the Indian Ocean, is one of the smallest countries in Asia — but a heavyweight in the tourism industry.
This momentum cannot be taken for granted, however. Food security shot to the top of the agenda following the war in Ukraine, forcing Maldives to increase imports and shore up reserves of staple foods including rice, wheat and sugar, amid soaring commodity prices. Like most small island developing states, Maldives is heavily reliant on imports of major goods: not only foodstuffs but also refined fuel products, medicines and medical equipment — goods that are critical to the economy and its current fragile rebound.
The COVID-19 pandemic hit tourism hard, shuttering hotels and restaurants for months on end worldwide.
Maldives’ economy shrank by almost a third in 2020, yet the country has since bounced back thanks to a rapid vaccine roll out supported by targeted investments in airports and sea ports. With tourist numbers reaching pre- pandemic levels of almost 1.7 MN arrivals in 2022, the economy is now set to expand by 8 percent in 2023.
MOHAMED NIZAM CFO, State Trading Organization, Maldives
Trade finance secures essential external supplies for small island developing states.
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