Micro, Small and Medium Enterprises (MSMEs) are the key to creating jobs, especially in the outer atolls, leading to more inclusive and broad based growth. Creating a supportive enabling environment for SMEs is a priority of the Government. In order to encourage entrepreneurs to open vibrant new businesses and generate jobs, the SME sector requires a strong ecosystem that combines adequate business support, market access facilitation, enabling regulatoryenvironment and SME friendly finance. Existing support system for SMEs include:

• SME Development Finance Corporation
• Business Centre Corporation (BCC) – managing 7 regional Business Centre’s (BC) established across the country. The BCs provide business advisory support to SMEs.
• A central department established under Ministry of Economic Development driving SME policy

The proposed projects aim to strengthen the mentioned ecosystem through the following initiatives:

SME Development Finance Corporation (SDFC) – Facilitating access to finance

The Government recently established SDFC, as a specialized financial institution providing financial products and ancillary services to MSMEs and entrepreneurial start-ups. SDFC targets to lend to the MSME sector at more attractive terms than what is offered through the existing banking system.SDFC is seeking assistance in the following areas as it works towards strengthening its operations and enhancing its financing capacity:

• Strengthen credit management framework
• Capacity development of staff in meeting the specific needs of the target customer base
• Develop an IT infrastructure to tap into web-based and mobile based services
• Capital injection of USD 50 million to expand business services

SME Industrial Park

The project aims to develop a facility providing the following services. The facility will be managed and run by the Business Centre Corporation, with the objective of generating revenues for the BCC to carry out its SME development initiatives in a sustainable manner.

• Factory set-ups for the manufacture and production of specialized commercial products (crafts, and specialist Maldivian products with scaling up potential)
• Warehousing options for SMEs involved in wholesale/retail trade
• Packaging centre for value addition activities (especially in the food and beverage sector)

SME Office Complex

The project involves development of a designated office complex to house all SME support services, as a one-stop-shop for all SME services. The facility is proposed to be located in Hulhumale’ and will be managed by BCC. The facility will house the following services:

• Business Centre Corporation office
• Small office spaces for rent to SME businesses
• Conferencing facilities
• Business incubation set-ups
• Showcase centre of SME products