Dear Valued Stakeholders,

I am pleased to present to you the Economic Development Board’s special edition of its newsletter. This edition focuses on the recent measures and announcements of the 2021/2022 Budget put forward this afternoon by Dr. the Hon. Renganaden Padayachy, Minister of Finance, Economic Planning and Development.

The overarching ambition for the economy, society and the environment is captured in its title, namely, “Better Together”. The budget sets out a series of measures to achieve this ambition.

Indeed, we must steer our way back on the path of recovery and prosperity and leave behind the negative fallout of the pandemic and further pursue our aim to emerge stronger by undertaking necessary reforms. Central to this ambition is our determination to open our borders to the world. We must also restore business confidence and become more resilient to any future shocks.

The budgetary exercise will instill confidence in the economy and prepare it for the long term by restoring the image of Mauritius as an investment and trade platform of choice for investors, local and foreign.

In furtherance to improving the business climate and spur investments, several measures on improving the ‘ease of doing’ business have been announced, with the distinctive measure being the creation of the Regulatory Impact Assessment (RIA) Agency, which heralds a new way of mitigating any potential negative impact of upcoming legislations on businesses.

A customized set of incentives will be provided under a new Premium Investment Certificate with a view of attracting innovative activities, high-tech manufacturing, medical, Biotech & Pharma and knowledge Industry.

With respect to construction and real estate, measures announced will ensure the momentum for the short and medium-term growth. Investment in public infrastructure also builds long term resilience, widens opportunities, and facilitates businesses by not only improving productivity but also contributes to improving the quality of life of the population.

In view of driving forward the sustainability agenda, the budget sets out the foundations to graduate towards a reduced dependency on fossil fuels by focusing on a number of initiatives related to Renewable Energy. Moving towards this sustainability goal is crucial for our economy, given that fuel imports represent more than 15% of our import bill. There are significant economic as well as environmental benefits to be garnered by accelerating our move towards sustainability.

To give a thrust to our manufacturing sector, at the level of the EDB, a Trade Development and Intelligence Cell (TDIC) will be set up to work with stakeholders to undertake prospection on market dynamics, distribution channels, buyers as well as the required standards, requirements, norms and Non-Tariff Barriers (NTBs) required for selected products where Mauritius has preferential access and disseminate all relevant information to existing and potential exporters. The development of new verticals will be one of the mandates of this cell.

To provide support to enterprises and prepare them for better resilience and competitiveness, a Modernisation and Transformation fund of Rs 5 billion has been allocated and will be managed by a new Industrial Financial Institution (IFI).

The EDB will also run an Export Development Programme that will target enterprises which are exporting or have the export readiness under the CECPA, the China FTA , the AfCFTA and other trade agreements.

Furthermore, EDB will be adopting a new strategy with respect to attracting new talents through the amendments to the occupation permit and Permanent Residence Scheme. Through targeted campaigns in association with MTPA, EDB will position Mauritius as a preferred destination for retirees and long stay tourism.

With the re-opening of our borders as from 15 July 2021, we are welcoming investors, travelers, tourists and residents back to Mauritius to come to invest, live, work, enjoy and retire.

The EDB will endeavour to work closely with all stakeholders to ensure that the measures announced are implemented as swiftly as possible and pave the way towards a better future for Mauritius.

This newsletter provides a summary of the measures by sector as well as our analysis of these measures on our economy.

We wish you a pleasant reading.

Ken Poonoosamy
Chief Executive Officer