03 December 2015

Mauritius: Finance Minister outlines new economic vision to the IMF delegation

The Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, outlined the new economic vision for the country during a working session held yesterday in Port Louis with a delegation of the International Monetary Fund (IMF) in the context of the 2015 Article IV Consultations.

During the working session led by the IMF Mission Director for Mauritius, Dr. Mauro Mecagni, Minister Lutchmeenaraidoo presented the country's new economic strategy as outlined in the 2015-2016 Budget. He underpinned the new strategy aimed at instilling a new impetus to the economic activity in order to achieve full employment by 2018 and eventually help the country emerge from the mid-income trap. The three pillars of the new strategy for growth are namely: the Blue Economy, the Maritime Hub and economic integration within the region and Africa.

The Minister of Finance also spoke on the various strategic initiatives taken to implement these three new pillars so as to boost the economy and enable the country to move to the next level of development.

The African strategy, he said, is on the right path with the support of the World Bank, the African Development Bank and other international development institutions. He explained the innovative approach adopted by the government to promote investment across the African continent with government-to-government agreements and Special Purpose Vehicles to attract capital.

With regard to the Maritime Hub, the Minister spoke of the partnership opportunities with world reference operators including DP World of Dubai, to transform the port into a regional maritime trade hub. He also dwelt on the need to maintain a stable financial system for which he solicited the IMF's expertise.

The issue of Government debt was also on the agenda whereby the Minister enumerated the measures taken to reduce public debt to 50% of GDP by 2018.

For his part, Dr. Mauro Mecagni, expressed satisfaction regarding the new economic strategy of the Mauritian economy and recalled the major challenges lurking ahead.

The IMF Article IV mission will be in Mauritius till December 16.

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