Facilitating access to financing to boost investment and development projects—this is the mission of the African Solidarity Fund (FSA), an international financial institution comprising 23 member states, including Mauritius, as well as the Central African States Development Bank (BDEAC). On Thursday, December 5, 2024, the FSA invited local economic players—banks, investors, entrepreneurs, and other stakeholders—to a meeting at the Hennessy Park Hotel in Ébène to present its range of financial solutions.
“This meeting stems from our commitment to addressing the specific needs of the Mauritian economy and our strong desire to strengthen our partnership with economic stakeholders. Our ambition is to increase the FSA’s contribution to the development of the Mauritian economy and its expansion in the sub-region, hence the establishment of a resident mission in Mauritius in 2022,” explained Emmanuel Adadé Sallah, Head of Mission for the FSA in Mauritius.
“The country has primarily benefited from the FSA’s support through financial guarantees. In 2024 alone, we have provided guarantees exceeding MUR 3.22 billion, enabling the release of over MUR 6 billion in financing for projects in key sectors such as industry, real estate, construction, and healthcare. To date, the total value of projects we guarantee stands at nearly MUR 15 billion,” he emphasized, highlighting the tangible impact of the FSA on the local economy.
The FSA’s financial guarantees can cover up to 80% of bank loans. This mechanism involves sharing the default risk with banks, thereby facilitating access to financing for projects deemed risky or lacking sufficient collateral. The FSA’s guarantees serve as a powerful lever to encourage private investment and maximize the economic impact of the private sector.
Beyond guarantees, the Mauritian government has benefited in the past from interest rate subsidy operations. This mechanism involves covering part or all of the interest costs through subsidies, thereby reducing the financing burden. The FSA also offers refinancing solutions, easing the repayment of bank loans for companies facing cash flow challenges.
Established in 1976, the FSA provides a wide range of services to support projects that foster economic growth in member states. In addition to investing in national guarantee funds to promote key sectors, the FSA brings its expertise to financing guarantees and third-party fund management. It also assists project developers in preparing their business plans and securing funding.
During this meeting, the FSA reaffirmed its role as a strategic partner for investors and its ambition to promote sustainable and inclusive development in Africa. By bringing together Mauritius’ key economic players, it demonstrated its commitment to strengthening partnerships while consolidating its position on the continent.
