Agro National Corporation Limited (AgroNet) will be brought under Maldives Industrial Fisheries Company (MIFCO) as a subsidiary, President Dr Mohamed Muizzu announced on Monday, as the government moves to more closely integrate the country’s fisheries and agriculture sectors.
Speaking at a press conference at the President’s Office, Muizzu said the restructuring is intended to expand AgroNet’s commercial activities while supporting the administration’s broader food security objectives.
The President said placing the agricultural company under MIFCO would create opportunities for the two state enterprises to jointly develop fisheries and agriculture, two industries closely linked to domestic food production.
The decision will also give MIFCO responsibility for the new local market being developed in Malé, according to Muizzu.
He said the government wants the market to operate on a commercially sustainable basis while providing maximum benefit to local businesses and consumers, rather than requiring continuous direct management by the state.
“To ensure the market is run sustainably, managed effectively, and provides maximum value to businesses and the public without requiring ongoing direct government oversight, we are handing it over to MIFCO,” Muizzu said.
The President said construction of the new market is expected to be completed by December 10 next year.
Once completed, the facility is expected to provide a dedicated space for the sale and distribution of locally produced goods, with its management falling under MIFCO following the restructuring.
Muizzu said these considerations led the administration to decide that AgroNet should operate as a subsidiary of MIFCO.
The move brings together two state companies whose mandates cover important parts of the country’s domestic food supply chain. MIFCO is the principal state-owned company involved in the fisheries industry, including the purchase, processing and export of Maldivian fish products, while AgroNet was established to develop agriculture on a commercial scale.
AgroNet was incorporated on April 21, 2020, initially as a subsidiary of the state-owned Maldives Fund Management Corporation (MFMC).
Its mandate was centred on transforming agriculture from largely small-scale production into a commercially viable industry, including developing opportunities for farmers and strengthening domestic agricultural production.
Food security has become an increasingly prominent part of government economic policy due to the Maldives’ heavy dependence on imported food and the vulnerabilities created by disruptions to international supply chains.
The Muizzu administration has placed greater emphasis on increasing domestic production of essential goods, including agricultural products, while simultaneously seeking to expand fisheries and other productive industries.
Bringing AgroNet under MIFCO represents the latest restructuring of state-owned companies by the administration. The government has been reviewing SOEs with the stated aim of reducing overlapping functions, improving financial sustainability and consolidating companies where their operations can be managed more efficiently.
The administration has already moved forward with several mergers, dissolutions and transfers of responsibilities among state companies as part of the wider right-sizing programme.
Muizzu said the AgroNet restructuring is expected to strengthen the company’s business potential while creating a more coordinated approach to fisheries, agriculture and domestic food security.
