Measures to revitalise the industrial sector

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GIS – 11 June, 2019: The 2019-2020 Budget highlights key measures aimed at providing comprehensive support for enterprises and firms in the manufacturing sector which have obsolete plants and equipment resulting in low productivity so that they can embrace the most appropriate technologies and become more competitive.

The Manufacturing sector remains the most important sector of the Mauritian economy. It currently contributes 12 percent to Gross Value Added (GVA) and accounts for 17% of total employment. In 2018, the sector grew by 0.7% and for the period 2015-2018 and the other manufacturing sub-sector, which caters mostly for the domestic market, has been expanding at an annual rate of 3.4 percent on average.

 

Accordingly, an amount of Rs 120 million has been earmarked in order to extend the “Support for Trade Promotion & Marketing” Scheme, which is essential to maintain the export competitiveness to Europe. The Economic Development Board (EDB) has also enlisted the services of ‘Idea Foundry’ from USA to come up with proposals for the most appropriate technology and processes required to foster a new ecosystem in order to adapt to the modern requirements of the international market.

 

Provision is being made for the creation of a new category of enterprises in a bid to ensure the proper grouping of enterprises according to their size. They include:

·         the creation of the Mid Market Enterprises (MMEs) with annual turnover between Rs 50 million and Rs 250 million;

·         a new Financing Scheme for MMEs to be known as the MME Financing Scheme under which the enterprises will benefit from concessionary interest rate on new loans from commercial banks;

·         the introduction of a line of credit facility in USD and EURO for export factoring services for the MMEs;

·         the reduction of annual interest rate under the MME Financing Scheme from 6% to 4.25%; and

·         the eligibility to financing of the MMEs under the SME Equity Fund.

The Cooperative Sector

The Budget laid much emphasis on building innovative, dynamic, resilient and globally competitive Small and Medium Enterprises (SMEs). In 2017, SMEs contributed to 33 percent of GVA and accounted for 49 percent of total employment and total exports of Export Oriented Enterprises (EOEs) stood at Rs 43.5 billion in 2018.

In a bid to build a ‘Nation d’Entrepreneurs’ and enact the recommendations of the 10-Year Master Plan for the SMEs which was prepared in 2017, several measures will be implemented in the Cooperative sector so as to support the development of industries for growth, to boost employment and wealth creation, to provide the right framework for trade facilitation and ensure continuity of supply of essential commodities, namely:

·         Rs 12 million for the setting up of a Cooperative Seafood Processing Unit at Tamarin;

·         a grant of Rs 25 000 to twenty cooperatives societies for the setting up of ornamental fish breeding farms; and

·         an increase of the grant to fishermen cooperatives for the purchase of outboard engines and fishing nets from Rs 60 000 to Rs 80 000.

Government Information Service, Prime Minister’s Office, Level 6, New Government Centre, Port Louis, Mauritius. Email: gis@govmu.org  Website: http://gis.govmu.org  Mobile App: Search Gov



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