Mauritius: PM Inclusive Financial System, a Critical factor for Economic Democratisation

An inclusive financial system is critical to our economic democratisation process and emphasis should be laid on financial inclusion which G20 leaders outlined as one of the main pillars of the global development agenda.

The Prime Minister, Dr Navinchandra Ramgoolam, made this statement this morning at the opening of a symposium on the theme Financial Inclusion in Africa: The Challenges of Financial Innovations for Monetary Policy and the Stability of Financial System organised in the context of the 37th Annual Meeting of the Association of African Central Banks (AACB) which is being held from 19 to 23 August at the Maritim Hotel, Balaclava.

In his address Dr Ramgoolam recalled that Africa is not renowned for high savings generally. However, given the volatility of capital seeds it is critical that we develop an efficient and stable banking and financial system that helps allocate these funds as effectively as possible. This will contribute towards a higher GDP growth and long lasting investment opportunities for the benefit of the African population.

The Prime Minister further underlined that as income level rises across Africa, it is crucial to ensure that the financial system of Central Banks remains competitive and efficient while adding that the role of central banks goes much deeper than just contributing to promote robust growth across the continent.

Hence, he strongly recommends the continued focus on producing a competitive financial system that serves the needs of the continent and that can help produce the sustained economic growth that Africa increasingly approaches.

He also listed out the challenges that Africa is facing, with the possibility of a slowdown in many emerging economies and sharp swings in exchange rates especially fixed exchange rate in the wake of the recent volatility in global financial markets in many emerging economies. According to the Prime Minister the advanced economies have provided substantial liquidity to the global capital markets and have helped to support asset prices. But as conditions improved in the developing economies investors will look for the prosperous markets in Africa which may lead to a rise in exchange rates and asset prices, he said.

Dr Ramgoolam, further observed that Africa can address those challenges with its greatest assets that is its young people. Every country in the African Union should be equipped with an educated workforce as human capital remains critical for the economic development in Africa.  In a bid to eradicate poverty and ensure that the fruits of growth are rightly shared it is essential to match growth with social policy, he added.

The opening ceremony was also marked by the launching of the first polymer banknotes namely the Rs500, Rs50 and Rs25 denomination.  The banknotes bear an iridescent feature “Swing” printed and registered on a transparent window to create a complex security feature, and the Domino feature for the visually impaired.

The Association of African Central Banks (AACB) presently consists of 40 member countries' central banks.  The idea of an AACB was first introduced on 25 May 1963, at the Summit Conference of African Heads of State and Government held in Addis Ababa, Ethiopia.