Financial Services Key To Mauritius's Economy, Says Government

by Lorys Charalambous, Tax-News.com, Cyprus

07 November 2006

The Mauritius financial services sector remains an important mainstay of the economy and is one of the fastest expanding sectors, with a growth rate of 6.7% in 2006, according to the jurisdiction's government.

For the past three years, financial intermediation has grown at an average annual rate of 6% compared to an average GDP growth of around 4%. For the same period, investment in that sector has increased in real terms by around 60%.

“It is clear that there is a dynamism in the sector and it must be harnessed so as to improve the resilience of our economy in these tough times of transition,” stated Deputy Prime Minister and Minister of Finance and Economic Development, Mr. R. Sithanen at the inauguration of the new office premises of AIK Credit and COPEX Group last week.

As the government implements its economic reform, the financial sector will be called upon to play an even more prominent role over the next years, he added.

According to Mr Sithanen, the restructuring of the economy of Mauritius will cost some R160 billion (US$4.9 billion) over the next ten years, and that money will have to be raised both on the local and international markets. Financial institutions operating in Mauritius are expected to help mobilize this finance.

However, as the economy moves back towards growth of 5%, the Deputy Prime Minister said that the country should not rest on its laurels until annual growth of more than 7% has been achieved.

"Mauritius must do better and bring investment to around 30% of GDP and growth to around 7% so as to create sustainable employment for all," he concluded.

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