Develop A Vibrant Mauritian Economy as a Connected City of Opportunity for Innovation and Growth

In the paper below, Dr Bhavish Jugurnath, Economist and Financial Consultant, suggests three key enabling strategies which the government should consider for the next budget.

There are many opportunities for Mauritius to innovate, deepen our capabilities, remain open and connected, and stay relevant to the world. The US and Europe continue to have innovative companies and people, whom we can work with. Mauritius should also see strong market potential in many parts of Eastern Africa as well as in emerging markets farther afield. Mauritius is also well-poised to tap into several growth sectors, driven by factors such as the rise of the middle-class and urbanisation in Africa.

To support these economic challenges, I believe three key enabling strategies will have to be put in place by the government for the next budget.

SME Mauritius needs to innovate - Developing a Vibrant SME landscape

Mauritius’ small domestic market makes it necessary for local enterprises to internationalise, often at a relatively early stage of their growth. In particular, emerging markets, especially in Africa, represent a major opportunity for local enterprises in the next decade and beyond. These markets will increasingly demand solutions in areas which Mauritian companies have strengths in, such as property development, water, waste solutions and healthcare. Mauritian-based companies which can seize these huge opportunities could potentially become globally competitive companies.  To this end, the Government can do much more to help companies access capital, build capabilities, establish networks and nurture talent in specific areas to internationalise.

Mauritius as a FINTECH hub for Africa – Update the regulations, acquire and utilise deep skills

Singapore has gone from being nowhere in FinTech to becoming the FinTech hub of Asia. Mauritius has the potential to grow in FinTech. In my opinion, FinTech in Mauritius certainly does have the basis to grow. There is a need to be really backed by the regulators. It’s very difficult for a FinTech business to grow without regulation. If you take the example of Singapore, it’s really gone from being zero in FinTech in the past six years to become the FinTech hub of Asia. It has created 25,000 jobs along the way. FinTech is also happening, though random, in Africa. South Africa, Nigeria…

They are all doing it. But FinTech in those countries is quite inward-looking. It’s only solving financial problems within the country. A lot of Africans are still unbanked. Mauritius is a step further. We already have a solid financial services sector and banking system. When we look at Africa, we need to move products that are not just country specific but which could work in different African jurisdictions. We are also a link between Europe, Asia and Africa for FinTech.  As such, Mauritius has a chance to grow. But it does come back to regulation. Without regulation, it is very difficult to operate.

If you look at Europe or the United States, the regulators are constantly updating the regulations to attract business, to protect the jurisdiction. If you do not change and update the regulation, you weaken the jurisdiction. If you update it regularly, you are going to bring in best practices from global jurisdictions into Mauritius and be in line with these jurisdictions.

In the same line, with the rapid pace of technological development, our local workers will need to develop deep skills to stay relevant. Two key shifts are needed. First, since technologies and jobs are likely to change throughout our lifetimes, we need to go beyond the pursuit of the highest possible academic qualifications early in life to focus on acquiring and using knowledge and skills throughout our lives. Second, as technology replaces routine tasks, our people need to acquire deeper skills to create value, and more importantly ensure that they can utilise their skills effectively on the job. Every advanced economy is wrestling with these difficult shifts. Mauritius is no different. 

Innovation grant for Local Enterprises - Transforming Mauritius in a Knowledge Based-Innovation Economy

As Mauritius moves towards a knowledge-based innovation-driven economy, the sustained support for the wide spectrum of capabilities development in the universities and public sector research institutions over the years will become increasingly significant in translating knowledge into the marketplace and growing a competitive talent base to spearhead the Innovation and Enterprise activities.

I believe these economic strategies to meet the upcoming challenges will create an economy that offers ample opportunities, with all Mauritians enjoying sustainable wage growth and meaningful careers. Together, the government can build a Mauritius of global relevance; an economy that can ceaselessly reinvent itself and grasp new economic opportunities.

By Dr Bhavish Jugurnath