Climate Adaptation & MSMEs in the Maldives: Context Analysis for Tourism, Fisheries & Agriculture Sectors
February 9, 2023
Entrepreneurship driven by innovation in technology and new market strategies can help the tourism, agriculture, and fisheries industries in the Maldives adapt to climate change. Entrepreneurs can devise and deploy market-driven solutions that enable people engaged in these sectors to adapt to the adverse impacts of a rapidly changing climate and to exploit the resulting emerging opportunities.
As the lowest-lying country in the world at just an average elevation of 1m above sea level, Maldives faces some of the worst impacts of climate change. Maldives has recently ramped up its efforts, with a substantial part of the GDP spent on adaptation and mitigation measures in response to escalating climate change impacts. The prominence of the climate and environment discourse in the Maldives has meant that over the years, communities and companies in the Maldives have implemented a range of measures to ensure environmental protection and promote sustainable development.
The national economic discourse and policy action in the Maldives has been primarily dominated and driven by the large industries of tourism, construction, transportation, telecommunications, and wholesale trade. It has been only in the past decade that the MSME sector has generated national attention and policy action, with legislative and financial support for growing the sector and supporting thousands of MSMEs that provide employment and livelihood opportunities for numerous Maldivians.
The MSME sector is nationally recognized as a critical component in creating a resilient and diverse economy for the country. The most significant impediment to promote and develop MSMEs is their lack of access to finance and the cost of accessing finance. This is exacerbated in the islands where there are limited banking facilities in outer islands. Within this context, it is important for MSMEs to proactively address the challenges posed by climate change impacts. This report examines the context for business in climate change adaptation in the Maldives.
Access the report here.
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