TAR123 – Q2 2023 – MAURITIUS Focus

Ra mapho sama yn otbeable to de li ve ra‘ Ne wD ea l’. Hema yy etbecome th e‘ GodofSmallThings’.

HARVESHSEEGOLAM CentralBankGovernor, Mauritius:“Wewilllaunch adigitalrupee”

GREENGOLDRUSH Will Africabenefit fromstrategic minerals?

SAFARICOM’S PETERNDEGWA: “Weunderstood theEthiopiaopportunity”

Whichfirmshavecomeoutontop?

WhichcompanieshavethriveddespitetheCovid-19pandemic,and whoisinbestshapetoreapthebenefitofhighercommodityprices?

Our2023editionof Africa’stop500companies reveals areshufingofthepackamongthecontinent’sheavyweights.

ABAN KFOR TH EN EW WORLD

totalpopulationof 1.4billionissetto double overthenext25 years,arguetheyare grossly under-representedindemographictermsat theBankandattheIMF

Thisunder-weightingoftheGlobalSouth translatesfromvotingrightsintoquotaallocations –the amount acountrycanborrow –attheIMF.Morewidely,Africanmember stateswantmoreseats intheBank andIMF boardrooms.AscellphonepioneerSirMo Ibrahimargues:“If we failtofind away for youngAfricatofitintotheagingmultilateral system,thenthesystemwillbecomesclerotic andirrelevant.”

WorldBankboffins have been workingthis yearon areform roadmaptoboostclimate finance.That worries thoseshareholderswho fearitcouldmarginaliseitsinitialmission offightingpoverty.Bangarightlyinsiststhe twoissuesare “intertwined”.Theriskisthat itcomesdowntochoosingbetweenfunds forthepoorestcountries andmorecashto stoshun

Whenfinanceministersandcentralbankers mullthechangingoftheguard at the Worl Banktheywill alsobe assessingthefutureo thisseptuagenarianinstitution. As intheUN Security CouncilandtheIMF,shareholders fromAfrica, Asiaand LatinAmerica want avoiceintheBankthat reflectsthe weight of demographicand economicchanges inthe21stcentury.

TheUS’s nomineetobethenext World Bankpresident,AjayBanga, has been welcomed acrossAfrica, AsiaandEurope. Yetanew chiefwillnotbeenough.He willberunninganorganisationplagued by financialpressures,geopoliticalchallenges andpolicydisputes. Banga,who steered therise ofMastercardtoa $300bn paymentsplatformfrom acredit-card companywortharound$20bn,is astar on WallStreet. Thatshould persuadebig firmsto workmore closelywiththeBank.

Someoftheknottiestproblemsconfronting Bangaarebeyondmoney. Suchas reforming quarrelsomebehemoth with189memberstates, 25 executivedirectorsand 27 vice-presidents

Acoregripeis structureand representation withintheBank.China,whichproducesabout 18%ofglobalGDP,complainsaboutits vo ingrightscompared to theUS,Germany an Japan.AfricanUnionmemberstates, whos

playingoutagainstthe ndfinance onomies, shington ndglobalisationin urofprotectionism,subsidisedmanywantto contain,China. onfiguraEuropeanUnionand happens pmentambitionsoftheGlobal ons such ean arena ithoutbetter coordinationandtoughernegotiatingstances, Asiaand rsasthebig

#123 /April-May-June2023

52 500CORPORATECHAMPIONS

Ourrankingofthe continent Top500 companies, covering 2021,shows notonlypost- Covid recovery but thehighest cumulativeturnoversince 2014.

82 INSIGHT /Africa-Germany

Thes cramblefor energy caus ed by Russia’s warinUkraine has prompted Germanytoturn it seyes tothecontinentfornew tradede als and par tner ships.

42 ENERGY DOSSIER

Symbion Poweris airliftinghydropowerto awholeof f- grid city, plus Eskom, Kenyan pricehikes and nuclear projects from Kore a.

90 LOGISTICS DOSSIER

Eg yptair’s pra gmatic approach, theSecond NigerBridgeand Transnet ’s PPP flop

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26 WIDEANGLE /Africaseeks‘greenminerals’advantage

Theracefor rare earthminerals and rivalr ybetween theUSand Chinapre sent s an ‘epo chal opportunit y’ formineral- rich countries.Z ambia, theDRCand Nigeriaare amongthecountries re adytos eize it.

34 SOUTHAFRICA /Thefirenexttime

As anew politics emerges in SouthAfrica, theANC is facingits toughes tbat tle yet,le avingPre sidentRamaphosa to dial downhis ambitions.

100 MAURITIUS FOCUS

Withtourists floo ding backand theopening of Africa’s third RenminbiClearing Centre, Mauritiusis bullish on grow th

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MAURITIUS FOCUS

Resetand reform, before poll season

Tourismisfloodingback,butisPrime MinisterPravindJugnauthreadytostakehis popularityonnecessaryreforms?

Mahebourg, afavourite withtourists toMauritius

By KERVINVICTOR inPortLouis

With generalelectionsjust two years away, the government ofMauritius’s Prime Minister PravindJugnauthhasits workcut outasit tries to revive oneofthe African economies worsthit by the Covid-19 pandemic, while deliveringon a slew ofcostlypromises, including a substantial increasein old-age pensions.

Theislandnation of 1.3 million people saw its economy contract by more than14%in2020. This, itsbiggest declinesince1980, was compounded by the worst health crisisinits post-colonial history

Thehospitalityindustry, which provides thecountry’s principal source of foreigncurrency, was particularlyhard hit: tourism contracted by 78.6% in2020and another 21.8% in 2021

Mauritius partly recovered in 2021, with GDPgrowing by 3.5%.

InDecember, FinanceMinister

Renganaden Padayachy predicted a 7.2%growth rate for 2022, while thenationalstatistics office forecast 7.8%growth for thesame year.

Tourismhits a highnote

More realistically, perhaps, Mauritius CommercialBank(MCB), thecountry’s mostprofitable bank, forecasts 6.2% realGDPgrowthat marketprices in 2022 inits most recent economic prediction,which was issued one month before the publication ofthe nationalaccounts by the Mauritiusstatisticsoffice. TheIMF anticipated 6.1% real GDP growthin Mauritiusinits most recent ‘Article IV’ report, published inmid-2022.

Thetourism industry recorded a growth rateof 243%in2022, accordingtothe nationalaccounts Mauritius welcomed almost 1 millionvisitorslast year, against about180,000in2021and310,000 in2020. The governmenthas set a target of 1.4 millionvisitors for

2023, says Jocelyn Kwok, CEO ofthe AssociationofHoteliers

Restaurants – Ile Maurice (AHRIM), which wouldbringthenumbers back to pre-pandemic levels

“The year2022ended on a veryhigh note,” Kwoksays “We witnessed theunflinchingengagement ofall stakeholders[…]in putting ourtourismindustryback ontrack. Regarding touristarrivals, the recovery rate reached 72% over thepre-Covid-19 level; and on revenue we achieved almost100% recovery. Our visitorsare staying longerandspendingmore, which ismostencouraging. The hotel accommodationsegment has been doingmuchbetter overthelast quarter, butothers mightdisplay more variable performance levels.”

Uncertaintyintheair

As ofSeptember2022,the country counted112 licensed hotels, sixof which were temporarily closed or undergoing restoration,while one new hotel was not yet inoperation. Thetotal roomcapacity was 13,508beds

Accordingto Kwok, reaching thetargetof 1.4 millionvisitors for theperiodfromJuly 2022toJune 2023 will require achieving a 100% recovery rate over 12consecutive months. “However, the realityis thatairconnectivity has yet to be fully restored,” he says. “We are not totally certainof thecontribution that we can expect from internationalairlinepartners, and we are aware ofthe specific situation of AirMauritius.”

The nationalcarrier was heading for bankruptcy untilit was bought out by state-controlled Airport Holdings Ltdin early2022. InMarch2023itannounced the resumptionofflightstoseveral destinations.

The need to recruitmore hotel staff, too, “may slow downoperationsand weaken our hosting capacity. Theseindustry-specific

GROWTHRATE OFTHE REAL GROSS DOMESTIC PRODUCT(GDP) SOURCE: ST AT ISTICA.COM

issues add totheuncertainties that will persist onthe geopolitical and economic fronts,” Kwokconcludes.

The governmenthasincreased themarketingbudgetof the Mauritius Tourism Promotion Authority by more than 10%, from Rs360m($7.8m)to Rs400m,tohelp with the recovery These fundswill beusedbothto sustain existing marketsand to explore potential opportunities andnichemarkets

Additionally, Airport Holdings willstart providingpersonalised services, suchashandlingprivate jets andhelicopter transfers fromtheairportto hotels, to accommodateultra highnet worthpassengers.

Mauritius’s resurgencehascome ataprice,withtheislandconfrontingsignificantmacroeconomic pressure. Overthe years, the governmenthas establishednew records forpublicspending. Total spendingincreasedfromRs126.5bn in2018-19toRs161bnin2021/22, withthefiscal deficitamounting

to 5.5%ofgross domestic product(GDP). Public-sector debt increasedto85%ofGDPatthe endofDecember2022,upfrom 65%inJune2019.

Sincethe Covid-19 outbreak, localshave hadtobearsteepprice increases, while the localcurrency hasbeensignificantly devalued. At theend ofJanuary, 2023, the Bank ofMauritius was sellingUS$1 for Rs45.42,compared toRs37.43in January 2020.Duringthesametime period,thepoundsterlingincreased fromRs48.60toRs56, andthe euro fromRs41.03toRs49.48.

Meanwhile, theheadline inflation rate rose from 4.6%inJanuary 2021 to10.8% in December 2022. This can be put downto a mixof

internationaland domestic factors, says BankofMauritius governor Harvesh Seegoolam.Theseinclude “geopoliticallyinduced soaring global foodandenergyprices duringthefirsthalfof2022, persistentsupply- chaindisruptions, and higher freight costs”.

Cropsfailure

Onthe domesticside,climaterelateddisturbances “causedlarge fluctuationsinthepricesof locally produced fooditems,namely vegetables,whichaccount fora relativelylarge shareoftheconsumer priceindex basket,” Seegoolam says.Mauritiusimports75%ofits food,amarket worth$800m, representing8%ofMauritius’s GDP.

InJanuary,thecentralbank introduced reformstoitsmonetary policy framework,aiming formore transparencyandabetteruseof liquidityinthebankingsystemto controlinflation(seepage109).

Afterthree yearsinpower, Jugnauth’s governmenthas

BEEKASH ROOPUN

EXPRESS MAURICE / AFP

Witha general electionon thehorizon, Mauritius’s Prime Minister Pravind Jugnauth doesnot wanttorock theboat

Overtheyears,the governmenthashit newrecordsfor publicspending

yet to deliveronmany of thepromises made during the2019 campaign,includingincreasing the old-age pensionfromRs10,000 to Rs13,500permonth The government’s generositymight comeat a great financial cost, due to the country ’s agingpopulation.

Thepensionburden

TheIMF haspreviously warned that a rapid increaseintheproportionofelderlyindividualswill create a large gapbetween pension spendingandpension revenue

Currently, 18% ofthe population isaged 60andolder, a ratio that is expected to grow to25.6% in 2034 and 37% in 2050. This means pensionspending will reach 8.1% ofGDP by 2023/24, while pension revenueislikelyto remainat only 1.5%ofGDP.

“Thepensionsystemin Mauritius[issupported by]many pillarsfromstateprovision, workplacepensionsandother private retirementplans,” says Bernard Yen,themanaging directorofmultinationalfinancial servicesfirm AonHewitt’s Mauritiusoffice.

“In general,theStateprovision, whichisnot funded,butpaid out oftaxeseach year, is not economicallysustainable becauseofour agingpopulation,oncurrenttrends Measures, suchasincreasingthe retirementage or meanstesting, will have to be introduced in order to avoid taxburdensbecoming unbearable inthe mediumterm.”

EconomistEric Ng PingCheun says that with the generalelection happeninginundertwo years,

important economic reformsshould notbe expected.

“Bigchanges and economic stimulusare usuallyimplemented atthebeginning of a mandate,” hesays. “Covid-19 was used as an excusenot to reformthe economy. The governmentused the reserves oftheBank ofMauritius only for spending, andtoday we are suffering theconsequences ofthe untimelyriseininterest rates.With the general electiontwo years on thehorizon,itistherefore unlikely that a major economic reformwill take place We willmanage the economy by ensuring thatinflation iscontained,ensuringthat there are nottoo many layoffs soas not to createsocial waves that could affect theelections.”

Chinacurrencyexchange

Mauritiuswillthereforeneed to waituntilafterthe2024elections foracomprehensive restructuringofits economy. Untilthen, FinanceMinister Padayachy, who willpresentthenationalbudget inJune,mustattempttoclosethe gapswhilehopingthe economic situation does not worsen.

LastDecember, Mauritiusmade a move tosolidifyits status as an internationalfinancial centre in the African region by launching a settlementcentre for the renminbi (RMB),China’s officialcurrency.

TheMauritius Renminbi Clearing Centre– the continent’s third after SouthAfricaandZambia– should facilitatecross-border transfers, makingthem fasterandcheaper

The Bank ofChina in Mauritius istheonlybankcurrently designated toclear RMB-denominated transactions. However, othercommercialbanks have showninterest injoining TheMauritius Renminbi Clearing Centre allows for direct payments to be made inChinese yuanwithoutthe need for anintermediatecurrency, makingtrading with China more efficient.

Theagingpopulation meansStatefunding forpensionsisnot sustainable

SOURCES: MINISTR Y OF FINANCE & DEVELOPMENT BANK OF MAURITIUS & EDB

KenPoonoosamy

‘T he focusis on innovation’

MauritiusiscourtingRs200bnininvestmenttodevelop thetech,healthcareandrenewableenergysectorssays the CEOofthe EconomicDevelopmentBoard

By KERVINVICTOR inPortLouis

KenPoonoosamyisupbeatabout Mauritius’s foreign directinvestment (FDI)prospectsin2023.“We expectanFDI exceedingRs25bn [$532m]for2023,” says theCEO oftheEconomicDevelopment Board(EDB).InflowsfromJanuary toSeptember2022were Rs18bn –anincreaseof 113%comparedtothe same periodin2021.

In thewakeofthe Covid-19outbreak, 2022 wasthe first yearinwhich theMauritian economy operatedwithout constraints, with borders fullyopen.“In 2021,while stillbearing the falloutof thepandemic, FDIinflows inMauritius amounted to roughly Rs15.4bn,”

says Poonoosamy. Going forward, “weexpect to be on parwiththe pre-pandemiclevels,wherewe attractedmorethanRs20bn for three yearsconsecutively.At thattime,FDI[was predictedto represent]4%ofGDP forthe year 2021,similartothe2022projection,”he says.

Morethan50% of theFDI received in2022 stemmed from investmentin thereal- estatesector This wasfuelledbyasmart-city policy thatisbeing rolled out across theisland.

“The real- estatesectoristhe forebearerof FDIinMauritius. Asignificant number of legislative changes, investmentschemes, policy changes andincentiveswere implementedoverseveral yearsto drivethe evolutionof real estate anditsassociated sectors,notably construction.The real- estate sectorcontributedabout 6.2%of thenational outputin2021,” says Poonoosamy.

Smartcities

Forfiveyears,before 2020,Mauritius registered anannualFDIin real- estateactivities averagingRs10.6bn perannum.It reached Rs16bn in 2019,proof oftheincreasing appealofMauritius anditsopportunities forforeigninvestors, hesays.

“Notwithstanding theoutbreakofthe pandemicand

CIELis aninternationalMauritian Group,listedonthe Stock ExchangeofMauritiusandonthe SEMSustainabilityIndex.The Groupinvestsandoperates in 6 strategicsectors,namelyTextile, Finance, Healthcare, Hospitality, Propertyand Agriculture.

Foundedin1912,CIELtoday employs 38,000talented individualsandispresentin emergingmarketsacross Africa and Asia. As afamily-controlled Group,CIEL continuesits entrepreneurialjourneytobethe leaderineach of itsindustries.

KEY FACTS

28.5Bn MUR Revenue +10 Countries 6 Clusters 38000 Employees 5th Floor,EbèneSkies, RuedeL'Institut, Ebène80817,Mauritius.

subsequent border closures, FDIin2020 and 2021 averaged Rs8.8bn, whichis in line withthe previous years’ average inflow.”

Thesmart cities in locations acrosstheislandare themajor engines ofgrowth and development.“Thesecities are largescale hubs, as opposed to being perceived as ‘residential estates’,” Poonoosamy says.

Theluxury residential segment isalsoonthe up.Blessed with sunshine all year roundand a turquoisecoastline stretching hundreds ofkilometres– coupled with a liberalproperty market, including freehold ownership by non-citizensin dedicated schemes, Mauritius hasgained rising popularity internationally

“Residential real estate is one of the mostpreferred investment assetsofultra-high-net-worthindividualsandinvestors. Theluxury residential real- estatesegment has seenanincreasing demandfrom foreign buyers overthe years,” says Poonoosamy.

Despitetheglobal uncertainties andthelingering effectsof Covid-19, Poonoosamy expects thepositive indicatorsof 2022 to carry over into 2023. In addition toongoingprojects, othermajor investmentsare planned.

Hospitalitypillar

“TheEDBis followingup and facilitating several projectswith aninve stmentpipelineofmore thanRs200bn,spread over several ye ars,” says Poonoosamy.

Thehospitalitysectoris expecte d topickupin2023, withthe re sumption ofprojects that were mothballed due tothepandemic, headds.

Mauritius welcome d nearly 1 million tourists in 2022.“We can expect a betterperformancethis ye ar,” hesays Theministryof tourism isprojecting 1.4 million tourist arrivalsin2023

DEVELOPMENTDRIVER

3Dprinting,automationandintelligent factories.”

IntheICT sector, high-endactivities suchassoftware development andanimation,big- data analytics, disaster recoveryandcloud computingare being promoted.

Thehealthcare sectorhasmetamorphosed into anintegrated cluster underpinned by high-value activities suchashi-tech medicine, medicaltourism,medical education and wellness, says Poonoosamy.

Silversurfers

Poonoosamy says themajor focusnow isoninnovationand thepromotion ofnew sectors. After Covid-19andits impacton theglobal economy, Mauritius isgradually repositioningitself as a strategic hub in the region by promoting sustainabilityand digitaltechnology. “Throughthis strategy, we are bankingnotably onthemanufacturing, ICT [informationandcommunications technology],energy, healthcare sectorsandthe silver economy segment to generate substantial FDI over the coming ye ars,” says Poonoosamy.

He explainsthatthemanufacturingindustry,whichhasalways beenthebackboneoftheMauritian economy, isnow goingthrough thenextphaseofits evolution by embracingtechnologyandturning tohighervalue-addedmanufacturing. “Theseincludesmart manufacturing, robotics,artificial intelligence,virtualsimulation,

Theauthorities also wantto reinforcethe positioningof Mauritiusas a hub for foreign retirees, witha view tomakingthe silver economy segment a prime economic pillar

“Theplanistoattract50,000 non-citizen retirees [to]Mauritius by theendofthe year For this goal tobe reached,itimplies developing a services-related industry for theelderly, which willinclude economic activities suchashealthcare, finance, transport, housing, educationand employment,” says Poonoosamy.

Mauritius isalsoseeking eco-conscious foreigninvestment tomeetthetarget of generating 60%ofits energy requirement generationthrough renewable sources by 2030, from 21.5% in2021.

The EDB is facilitating a hostof renewable-energyprojects, which are likelyto receive investment during2023, ensuring a substantial influxofFDI into the energysector.

“FDIintheenergysector has beenonanupward trend over the past five yearsandamountstomore than Rs500m.Ithas beenboosted by the variousincentives provided by the government, like the solar-energyinvestmentallowance, tax exemption for interest derived frominvestmentin green projects, and variouscustom-dutyand VAT taxholidays onphotovoltaic products,”

says Poonoosamy.

‘THEPLANISTO ATTRACT50,000 NON-CITIZEN RETIREESIN BY YEAR END’

1995 JoinsMauritiusFreeport AuthorityasAssistantOperations Manager

2005 JoinstheBoardof Investment,theapexinvestment promotionagencyinMauritius

2011 BecomesManagingDirector oftheBoardofInvestment

2021 AfterthreeyearsasDeputy, becomesCEOoftheEconomic DevelopmentBoard

WE SERVE AFRICA*

Serving theAfrican continentsince 1994 , our four companies provide expert services in theEquipment& Systems, Chemical and Technological industries.

*Based in Mauritius, Harel Mallac is also present in Africa, notably in Rwanda, Tanzania, Burundi and Zambia

Harvesh Seegolam

lation will take a downward trajectory’

The GovernoroftheBankofMauritius elaboratesonhis newmonetarypolicyframeworkandtheroleofdigital innovationintheBank’stransformationalprocess

Interviewby KERVINVICTOR inPortLouis

TAR: Could you explaintheBank ofMauritius’s new monetary policy, which wentintoeffect in January 2023?

HARVESHSEEGOLAM: WhenItookthehelmoftheBank ofMauritiusin2020,oneof my priorities wastoaddresstheshortcomingsofthemonetarypolicy framework. Theobsolescenceof theframeworkintroduced in2006, became even more evidentduring the Covid pandemic. We are one among a handfulofcountries to have elaborated such aninnovative frameworkduring the currentchallenging andshock-proneera.

Thenewframeworklaunched on16January2023addressesthe deficiencies ofthepreviousone andhelpsstrengthenthemonetarypolicy transmissionmechanism. The forward-lookingapproach tomanaginginflation requires strongercommunicationabout thestanceofmonetarypolicy and monetaryoperationsundertaken by theBank.

The Bank has adopted an explicit inflation target of3% to 5%,with a medium-term objective of 3.5%. Thetargetprovidesa benchmark against whichthe public cangauge inflationary pressures and assess thebank’s successin keeping inflation undercontrol.

Underthenew framework, the Key Ratehas replaced the Key Repo Rate It was introduced atthe same level as the Key Repo Rate. The overnightinterbank rate has replaced theyield onthe 91-Day Billasthe operational target for monetarypolicy.

Themaininstrument ofmonetary policy isthe 7-Day BoM Bill, which thebankissues every Friday at a fixed rate equalto the Key Rateand on a fullallotment basis. The bank will maintain a symmetric interestratecorridor of 200basispoints around the Key Rate through

‘Inf

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standing depositand lending facilities. AnOvernight Lending Facilityis available to banks atthe Key Rateplus 100 basispoints, andanOvernightDeposit Facility isoffered tothem at the Key Rate minus 100basis points TheBankis actively managing excessliquidity in the system throughthenew framework Banks are remunerated at ahigher ratethan was thecase underthepreviousframework.

Theintroduction ofthenew operationalframeworkhasalready led to anadjustmentto shortterminterest rates– suchas in the overnightinterbank rates andyields ontreasurybills Itis expected that banks willpassontheadjustments tocustomersthrough ahigher Savings Deposit Rate Inparallel, the Prime Lending Rateisalso expected tobe adjusted.

Theobjective is to improve the effectivenessof the monetary policy, anchorinflation expectations, andenable theBank to gain more traction on inflation. Leaving inflationunaddressed can leadto highly volatile and destabilising pricepressures, whichmay have severe long-termimpacts on the purchasing power ofindividuals, thelabourmarket, andultimately, economic growth.

How do yousee recentinflation developmentsandwhatwillthe directionofmonetarypolicy bein thefuture?

Inflation inMauritiushas been pronounced throughout2022dueto a mix ofinternational and domestic factors 2022witnessedanormalisationprocessinmonetarypolicy, with a series offive successive

hikes aggregating265basispoints, bringing thepolicy rateto 4.5%.

In2023, theMonetary Policy Committee (MPC) will closely monitorthesituation, especially inflationandgrowth developments and forecasts ofinflation and growth.MP C memberswillmeetup on a quarterlybasis and deliberate onthe Key Rateaccordingly

Whatis your forecast for Mauritius’s inflation in 2023?

Inflation is forecasttomoderate progressivelyduring 2023as influences frompast priceshocks graduallydissipate. Domestic price pressures are anticipated to ease away asthe effectsofcommodity price declines duringthe second halfof2022begintoseepin. Globalsupply and logistics disturbances are expected tobe resolved, enablingan efficientstabilisationin commodityprices.

Theslowdown inglobal economic activityandthe decisions by major tradingpartnercountries to raisetheir interest rates will helpin keeping a lid on foreign inflation,with lower pass-through effectson domestic prices.

Consequently, inflationin Mauritius is expected to takea downward trajectory from early 2023. However, this excludes supply-side shocks like electricity

pricehikes, whichwillbeeffective asof February2023 Headline inflationis forecast within the range of 5- 6% for the year.

You were recognised by The Africa Report asoneofthe Top 40Digital LeadersinAfrica.Whichareas are you focusingon?

Thebankhasalreadyembarked on a numberofprojectstofurther moderniseitspaymentsystemsand introduce innovative, user-friendly paymentsolutions Theintroductionofthe MauCAS QRcode in September2021 has been a gamechanger andhassimplified thelives of consumers.

Modernisingthebanking landscapealsomeanscreatingan enabling environment for new types of players, namelydigitalbanks. Withthatinmind, dedicated guidelines onprivatebankingand digital banks were introduced in2021 The guidelines willprovide a conducive environment for private banking anddigital banks toflourish.

TheBank is also workingonthe launch,on a pilotbasis, of a Central BankDigitalCurrency (CBDC), theDigital Rupee. We are actively buildingcross-border bridges with other central banks togive our CBDCa wider reach.

Technology plays a major role in thebank’s transformational process but, as a central bank,we remain veryvigilant regarding risks To that end, we investheavilynotonly in research and development but also inITand cybersecurity.I am pleased toshare thatour efforts have not gone unnoticed. TheIMF hastaken the BankofMauritius as a modelon the cybersecurity front.

‘WEARE WORKING ONTHELAUNCH, ONAPILOT BASIS, OFACBDC,THE DIGITAL RUPEE’

Labourdonnais Waterfront Hotel

Le Suffren Hotel &Marina Hennessy Park Hotel The Address Boutique Hotel

Photo

tak en at Ra vior workshop

UK MIGR AT ION DEALSN EED AR ET HI NK

ne ed immigrationinorderto remain economicallyproductive.

The government’s controversial Rwanda policy,w hichit de scribe so n its we bsite as a‘worldfirstpartnership totackle [the] globalmigrationcrisis’,hasalsocomeunder scrutiny.Critics describethepolicy of flying asylumseekerstoKigali for‘processing’and apotential ‘new andprosperouslife’ inthe Africancountryasan exerciseinsmokeand mirrors.Rwandaisonlyabletotakein1,000 asylumseekersduringthetrialperiod, at a costofover£170m($208m).Thistranslates to astaggering£170,000cost perperson.

Furthermo re ,t hepropose dI llegal MigrationBilllists57countries fora similar deal.Only 19% oftheseare Africancountries, andonlythree arewilling toaccept women. SomeAfricannationshave already rejecte d the ide a,suchasGhana.

TheUK’spropose dIllegalMigrationBill, introduce dbyH omeSecretarySuella Braverman,hasdrawncriticismforitsperceive dnarrow focuson domesticsolutions to acomplex globalproblem.

Aimedasa deterrentto ‘smallboatcrossings’,thebillmakesprovisionto detainand remove fromtheUKanyonewhoarrives by illegalmeans.Withthe UN estimatingthat morethan100millionpeopleare forcibly displacedworldwide,criticsarguethatthe government’scriminalisation andstigmatisation ofso -called ‘illegal’migrantsisbothmorally reprehensibleand economicallyshort-sighted

Numerousstudies have shownthatimmigrationhas anetpositiveeffectoneconomies, particularlyintermsoftax revenue s.

Researchconducted by ChristianDustmann and TommasoFrattini ofUniversity College London foundthatimmigrantswhoarrived intheUKsince2000have madeconsistently positivefiscalcontributions,regardlessof theircountryoforigin.

As such,manyarguethat boththeUKand Europe

As sumingthat ea chcountry re quires a similarfinancial de al to t hat ofRwa nda, thecostcouldamounttonearly£9.79bnon partnershipsalone,afigurethatcouldbe betterspentinve stinginclearerand fairer policies that allowfor secure, safe and legal immigration intothe country

Giventhe re ality ofthebuildingglobalmigrationcrisis,criticsarguethatitis hightime fortheUK governmenttoadopt am oreh umane and ec onomicallysound app ro ac htoi mmigrat io n. Criminalising andstigmatisingvulnerablepopulationsis not aviablesolution.

Instead,the governmentshouldinvestin policies that re cognisethe economicand moralbenefitsofimmigration.The va rie dethnicbackgroundofthis government suggeststhatthesesortsofargumentsmay alreadybestaringtheminthe mirror

Anincrea sing number of mi grant st o Europe hailfromAfrica,whetherthrough displacementornot.Africanshave barely contribute dtot heclimat ec risispushing themout oftheirhomes;forcing themonto planes addsinsulttoinjury.

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