National commitment to inclusive growth and financial equity, His Excellency Vice President Uz. Hussain Mohamed Latheef spotlighted the Maldives’ strategic efforts to strengthen Micro, Small and Medium Enterprises (MSMEs) and pushed for urgent global financial reforms during his participation at the Fourth International Conference on Financing for Development (FfD4), held in Seville, Spain, from June 30 to July 3, 2025.
Speaking at a dedicated side event titled “Empowering MSMEs in SIDS through Grants: Lessons from the Maldives Experience”, the Vice President emphasized the critical role that MSMEs play in sustaining a resilient and inclusive economy. He noted that these enterprises constitute approximately 90 percent of all registered businesses in the Maldives, underlining their centrality to the country’s economic fabric, especially across island communities.
The Vice President detailed key government initiatives aimed at boosting the capacity and reach of MSMEs. Among the most prominent is the Creative Economy Strategic Action Plan, which focuses on enhancing access to finance, developing collaborative workspaces, improving market access, and building legal and structural support systems for enterprise growth. The plan also prioritizes upskilling the local workforce and expanding innovation-driven opportunities for entrepreneurs in emerging industries, such as the creative economy.
Special emphasis was given to the Maldives’ targeted support for women- and youth-led enterprises. The Vice President highlighted the launch of the second phase of the Fashaa Madhadhu Loan Scheme, which aims to provide financial support for women entrepreneurs, with a dedicated 25 percent allocation for women with disabilities. He reaffirmed the government’s commitment to gender-inclusive development by ensuring that women in remote island communities have access to meaningful economic participation.
Additionally, the government is working to improve nationwide access to banking services, expand transportation infrastructure, and accelerate digital connectivity to create a more enabling environment for small businesses across the country.
Beyond national efforts, Vice President Latheef also took the global stage at Multi-Stakeholder Roundtable 6 on the theme “Reforming the International Financial Architecture and Addressing Systemic Issues”, where he called for urgent structural reforms of the international financial system. Delivering the keynote address, he outlined three critical actions to ensure fairer representation and better outcomes for Small Island Developing States (SIDS) like the Maldives.
He urged reforms in the governance structures of global financial institutions, including updates to voting rights, board representation, decision-making processes, and transparency mechanisms to better include the voices of vulnerable economies. The Vice President further stressed the importance of a debt management strategy that promotes sustainability without compounding financial burdens. He presented the Maldives’ proposal for a “debt relief for resilience building” mechanism, which calls for support packages that do not generate additional debt and instead focus on long-term economic stability for SIDS.
The Vice President also reiterated the need for fair and accurate credit ratings for small economies, greater international financial support, and more equitable global cooperation in tackling systemic economic disparities.
The Maldives’ presence at FfD4 reaffirmed its active role in shaping the international development agenda, particularly on issues that affect small island states. The government’s continued push for structural reforms and inclusive economic empowerment underscores its broader strategy to build resilience, ensure equitable growth, and advocate for the needs of vulnerable nations within the global financial framework.
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