The Republic of Maldives, with its population of over 515,000 people, relies almost exclusively on tourism and related industries for economic growth and job creation – with the sector contributing almost two thirds of the country’s GDP.
The COVID-19 pandemic has adversely impacted Maldives. For IFC, a key focus has been working to help mitigate the impacts and pave the way for a sustainable resilient recovery.
In 2020, IFC made a $175 million investment in John Keells Holding (JKH), as part of IFC’s broader efforts to create quality jobs, and work for a sustainable future, with a proportion of the proceeds set to boost the supply of green hotels in Maldives to meet expected future demand.
IFC also committed a $50 investment to Bank of Maldives – the country’s largest bank - to support the working capital needs of small and medium sized businesses in the tourism and related sectors to help preserve jobs and combat the negative shocks of COVID-19 on the economy.
To promote inclusion, IFC is working to enable disruptive models of digital finance and foster social inclusion through better gender parity, improve access to financial services for micro, small and medium entrepreneurs and women. IFC also aims to improve infrastructure and sustainability in Maldives by supporting key affordable housing as well as climate resilient infrastructure projects. In addition, IFC is looking to tap into opportunities in tourism infrastructure, maritime transport, and urban development.
As of June 2020, IFC’s committed portfolio in the Maldives is: $22 million
‘Our immediate focus is preserving livelihoods and minimizing the destruction of markets’ - Amena Arif, IFC: The Edition interview of Amena Arif, IFC Country Manager for Maldives and Sri Lanka, to explore what mechanisms IFC has in store and the efforts to forge a clear path ahead for the island nation’s economic recovery.
Published in October 2020