Maldives Industrial Fisheries Company (MIFCO) is slated to become a wholly government-owned entity in an unprecedented move that reflects the strategic consolidation of the Maldivian government’s holdings in vital economic sectors. The decision was taken by a Cabinet Minister on December 5, 2023, and is expected to be finalized by the end of the month.
Firming Government’s Grip on Key Economic Sectors
A Share Transfer Agreement, signed by the State Trading Organization Plc (STO) and Allied Insurance Company, officially conveyed their shares in MIFCO to the Government. The ceremony was graced by significant figures, including Finance Minister Dr. Mohamed Shafeeq, Mr. Shimad Ibrahim, Managing Director of STO, and Mr. Hussain Luwaiz, Managing Director of Allied Insurance Company.
A Boost for the Fisheries Industry
The transfer of these shares is viewed as a calculated move designed to bolster the government’s position in the fisheries industry, a critical pivot of the Maldives’ economy. MIFCO, being a significant player in the Maldivian fisheries sector, is expected to benefit in terms of profitability and efficiency, as the transfer may enable more cohesive policy implementation.
Aligning with National Economic Goals
The share transfer aligns perfectly with the government’s ongoing efforts to optimize the management of state-owned enterprises and amplify the country’s economic performance. The specifics of the transaction, including the number of shares and the financial implications, remain undisclosed.