Renganaden Padayachy (right) chatting with private operators, Monday 5 July, at the Hennessy Park Hotel
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“A participatory approach for collective success.” Placing sustained and effective collaboration with the private sector at the heart of his recovery strategy, the Minister of Finance, Renganaden Padayachy met Monday, July 5, at the Hennessy Park Hotel, all the captains of industry from the private sector, marking the coup d ‘sending of a series of meetings with the common goal of building the country’s economic recovery together.
Several representatives of the private sector attended this meeting including those of Business Mauritius, the Mauritius Export Association (MEXA), the Mauritius Chamber of Commerce and Industry (MCCI) and other groups including IBL, CIEL, Medine and MCB, among others.
Covid-19 requires, state aid to the private sector is numerous with nearly Rs 100 billion made available to it since the start of the crisis, including the contribution of the Mauritius Investment Corporation (MIC).
However, a question often raised by economic observers remains, what about the participation of the private sector in this national effort? Will they be ready to draw on their profits or even stop the payment of dividends to become real partners in this economic recovery?
Triple shock
We can only hope so, but while waiting for the Grand Argentier, he opens wide the doors of a lasting collaboration, especially following what he calls a triple shock on the economy, the Covid roundups, the tourism at half mast and our entry on the FATF gray list.
For this purpose, a Public-Private Joint Committee, chaired by Renganaden Padayachy, will be set up and will meet on a quarterly basis, in order to ensure regular exchanges and follow-ups of ongoing projects and partnerships between the private sector and the State.
This revival, according to the minister, started strong with the phased opening of the borders, leading to a full opening in October. According to its figures, 580,000 Mauritians have already received a first dose of vaccine and the goal of 70% of vaccinated should be reached by the end of September.
«After more than a year of crisis and restrictions, it is high time to get back on the road to robust and sustainable growth. We have experienced the worst crisis in our history, a shock wave estimated at almost 15 points of growth for 2020. Many sectors of activity, cut off from their markets, have had to face difficulties and the government is failing them. did not give up “, says Renganaden Padayachy.
Support measures
The Minister refers to the many support measures, including the Self Employed Scheme, the One-off grant for self-employed, the creation of the MIC, the Wage Assistance Scheme and loans granted to SMEs with 0% interest rate. interest, among others. “These are unconventional, but effective measures that the government and public institutions have put in place to make our economy resilient to Covid-19. It was about preserving our production capacity and we were able to prevent an explosion of defaults, bankruptcy and layoffs. This unprecedented mobilization is bearing fruit, we are aiming for 9% growth for the fiscal year 2021-2022, we must work to achieve this objective. ”
However, we have many challenges and Renganaden Padayachy wanted to be reassuring by recalling the establishment of a committee since the first «downgrade» the Moodys. «We are also working on solutions to lower the level of public debt ”.
Investment
For the recovery, the Minister of Finance wants to make investment a priority in the public and private sectors in order to increase the country’s Gross Domestic Product, while reducing the unemployment rate.
He also reviewed certain budgetary measures, which should help boost our growth, such as the modernization of our traditional sectors and the creation of new growth vectors.
These measures include the creation of a Modernization and Transformation Fund, which will have an investment capacity of Rs 5 billion, where companies with eligible projects can apply for loans. Firstly, operators in the fishing, agriculture and manufacturing sectors are concerned.
There are also the measures to migrate towards the production of green energy up to 60% and the launch of a pharmaceutical industry in the country where the state wishes to attract pharmaceutical giants with a starting capital of one billion euros. rupees. With this in mind, the Economic Development Board has already launched a call for candidates.
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