MIFCO’s Foreign Earnings Rise as Gov’t Assures Financial Sustainability

Maldives Industrial Fishing Company (MIFCO) has recorded a recent surge in foreign earnings which has provided a major boost to its financial sustainability, especially the timely settlement of its dues to local fishermen, Minister of Fisheries and Ocean Resources, Ahmed Shiyam has said.

When this Administration took office in November 2023, arrears to local fishermen amounted to around USD15 million. Despite some initial setbacks, this Administration has gradually settled the arrears.

On last year’s Fishermen’s Day, celebrated on 10 December, President Dr Mohamed Muizzu had announced that his Administration had now made arrangements to settle payments to fishermen within 48 hours.

True to the President’s pledge, MIFCO is now depositing payments to fishermen well within 48 hours.

Minister Shiyam reiterated that the government has made arrangements to ensure that this practice would remain sustainable even in the future.

“MIFCO is one of the largest foreign exchange earners in Maldives. During fishing seasons foreign earnings are extremely good. We, led by the President, are looking very closely at strengthening MIFCO. There are now mechanisms in place to exchange this foreign exchange inflow through BML [Bank of Maldives] so that the public can also reap its benefits,” Shiyam explained.

MIFCO’s foreign exchange earnings were injected into the local banking system through an agreement between the company, BML and the Ministry of Finance and Planning. Earlier, MIFCO’s foreign exchange earnings from fish exports were exchanged through the parallel market, but now it is being deposited directly to the bank.

According to Minister Shiyam, this new arrangement has greatly benefited BML, local fishermen and the general public.

According to statistics shared with PSM, MIFCO has deposited USD4.6 million in fish exports since it started settling dues to fishermen within 48 hours.

MIFCO estimates that it will earn around USD50 million based on its average exports of 300 metric tonnes of fish annually.

MIFCO and the government have set sights on increasing this amount to USD90 million in the near future. This Administration since taking over, has initiated significant efforts to enhance and diversify the country’s fisheries industry including the establishment of cold storages and processing plants.