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Government Approves USD 2.2 Million in Loans to Modernise Fishing Fleet

The government has approved USD 2.2 million in concessional loans for 33 fishing vessel operators to install refrigerated saltwater (RSW) cooling systems, a key step in modernising the nation’s fishing fleet and improving the efficiency of post-harvest operations.

The financing, jointly administered by the Ministry of Fisheries and Ocean Resources and SME Digital (formerly the SME Development Finance Corporation), is part of the government’s broader RSW Programme—an initiative aimed at addressing long-standing challenges such as the scarcity of ice, high preservation costs, and logistical constraints that affect the country’s vital fisheries sector.

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According to the Fisheries Ministry, 85 applications were received during the latest round of submissions. After a thorough evaluation process, 33 applicants were approved, with USD 1.54 million already disbursed to recipients.

Launched in September 2024 under President Dr Mohamed Muizzu’s administration, the RSW financing scheme was later reopened with expanded concessions to make the programme more accessible and economically beneficial for local fishermen.

The initiative focuses on four primary goals:

  1. Reducing dependence on ice plants across the atolls,

  2. Lowering operational costs for vessel owners,

  3. Enhancing fish quality by maintaining catch freshness at sea, and

  4. Extending fishing durations to improve productivity and profitability.

To encourage wider participation, the government also eased eligibility criteria, including shortening the required credit history review period from one year to three months.

Loans under the programme range from USD 6,487 to USD 129,750, provided without collateral, and feature a 10-year repayment period with a six-month grace term. In addition to RSW systems, operators can use the financing to purchase solar energy systems and generators for vessel use.

Officials said the programme reflects the government’s commitment to strengthening the fisheries sector, the backbone of the Maldivian economy, by enabling vessel owners to adopt sustainable technologies that improve both efficiency and earnings.

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