The Ministry of Financial Services and Economic Planning, under the leadership of Dr. the Hon. Mrs Jyoti Jeetun, gathered industry players for a major consultative workshop on 10 March, to inform the development of a new roadmap for the sector, focused on growth and competitiveness.
The workshop, held at the Hennessy Park Hotel in Ebene, sought to gather collective intelligence in order to design concrete solutions, moving beyond the framework of existing challenges. The Governor of the Bank of Mauritius, Dr. Rama Sithanen, and the Junior Minister of Finance, the Hon. Dhaneshwar Damry, underlined the need to adopt bold and visionary policies in order to position Mauritius as an agile, competitive and digitized financial hub. In a spirit of collaboration, some 140 representatives of the public and private sectors engaged in strategic discussions to strengthen the attractiveness of the country and stimulate sustainable economic growth.
In his opening remarks, Dr. Rama Sithanen, Governor of the Bank of Mauritius, highlighted that the financial sector of Mauritius was at “critical inflection point”, and commented that “we cannot afford to get it wrong as this is the most critical sector in the economic landscape”. He posed a number of key questions to participants: “Where will the future growth come from? Is it from a consolidation of what we have? Is it from diversification? Or is it from transformation? Or is it a combination of the three?” He thought it was important to consider the geographical footprint, if the current narrow list of services should be expanded. For the global business sector, in his view, the business model had not changed since 1991. “What is our unique value proposition?” he underlined.
The Hon. Dhaneshwar Damry, Junior Minister of Finance, raised the issue of the capital markets in Mauritius being underserved, and considered that the bond market could be developed further. He placed strong emphasis on digitalisation, urging Mauritius to “achieve a fully digital economy”. In terms of what the government could do, he saw that “Mauritius has a unique value proposition in terms of investments into Africa” and asked what more they could do as a government to really become the financial sector for Africa.
“Whatever happens, it will be necessary to rebuild the foundations of the country,” said Dr. the Hon. Mrs Jyoti Jeetun. For the Minister of Financial Services and Economic Planning, this will require a firm commitment from the Mauritian government. “The keynote speech ‘A bridge to the Future’ is not a statement of intent. We are going to make it happen, brick by brick, reform after reform. The priorities are clear, the actions will be precise, and we will move forward pragmatically. In a world in perpetual upheaval – financial crises, climate change, technological revolution – our strength will be our ability to innovate, to adapt, to bounce back. We are implementing a long-term strategy, with measurable objectives and rigorous evaluations to ensure our trajectory. That’s the whole point of our work today,” she emphasised.
Focus on tackling challenges and strengthening attractiveness
During the first roundtable, the discussions focused on the major challenges of the Mauritian financial sector and the necessary actions to strengthen its attractiveness. Among the main obstacles identified were administrative inefficiency, fiscal instability, rising operating costs, but also a lack of qualified talent, identity and visibility. Insufficient digital transformation and dependence on the US dollar were seen as hampering the country’s competitiveness. In addition, some initiatives, such as family office licenses, have not met with the expected success, while other opportunities, such as green finance and ship registration, remain underexploited.
To meet these challenges, several recommendations were formulated: accelerate the digitalisation of administrative procedures and make them more efficient, stabilise taxation to offer a transparent framework to investors, encourage banking diversification with solutions such as open banking and stablecoins, and structure a solid framework for sustainable investments. The participants also stressed that in order to develop a sophisticated and innovative international financial centre, Mauritius must clarify the markets it wishes to target and the way in which it intends to create value.
Tax rates were among the central topics of the discussions. The speakers cited the example of London, the only IFC that has managed to harmoniously integrate domestic and offshore financial activities, which allows the free movement of talent between these two segments. According to panellists, the need to establish clear objectives and a long-term vision for the sector must be a top priority.
Africa and investments on the African continent were also at the heart of the debates. The participants stressed the importance of taking advantage of cross-border agreements, such the African Continental Free Trade Area. They recommended attracting big names from family offices, private equity firms, development finance institutions and prestigious brands that could help position Mauritius as a privileged destination for private wealth management.
Repositioning the IFC to highlight its strengths
The second roundtable focused on the obstacles of the Mauritius International Financial Centre (Mauritius IFC) to improve its image on the international scene and its repositioning. The participants compared Mauritius to other international financial centres which, although discreet, are recognised for their favourable business environment and their low level of bureaucracy. The discussions also focused on how the country can strengthen its role as a bridge between Asia, India and Africa. Drawing inspiration from the Singaporean model, the participants stressed the importance of building strong relationships with all stakeholders and improving interactions with regulators to effectively solve problems.
In addition, it was considered that the country’s international image suffers from media coverage that is often focused on controversies, such as the Chagos case, rather than on its financial assets. It was also seen that the lack of a clear and attractive positioning compared to competing financial centres also limits its visibility and attractiveness.
To remedy these challenges, several actions were to be considered: the structuring of a dedicated team and the strengthening of governance were seen as essential to ensure the monitoring and implementation of adequate reforms. It was also considered crucial to reduce bureaucracy by adopting international regulatory standards and drawing inspiration from the best practices of global regulators.
The repositioning of the Mauritius IFC also requires clearer and coherent communication, according to the discussion, highlighting its key assets: political stability, advantageous time zone and solid legal framework. Finally, improving the investor experience was deemed to be crucial. This implies a simplification of administrative procedures, a strengthening of the regulatory framework, as well as the guarantee of fiscal and legislative stability. By implementing these strategic actions, the Mauritius IFC could significantly improve its image and strengthen its position on the international financial scene. The creation of a dedicated agency, modelled on the model of the Financial Services Promotion Agency (FSPA), was also mentioned by the partners in the sector.
Repatriating the country’s expatriate talents
Finally, the third panel reported on a lack of qualified resources, especially in the financial services sector. Many international companies were wondering about the qualifications available in the Mauritian job market before setting up on the island. However, it was noted that there are significant gaps between the skills available and the needs of the market, especially in key areas such as accounting, taxation, compliance, fund management and fintech.
According to the speakers, one of the underlying problems is the mismatch between education and the requirements of the labour market. The education system evolves more slowly than the needs of companies, and young graduates often have to adapt themselves to an ever-changing environment. In addition, traditional education places more emphasis on individual competition, while the world of work requires collaboration and team spirit, according to the panel.
Moreover, a major challenge lies in the adoption of new technologies to support learning and professional development. The exodus of talents (brain drain) is another major concern. This phenomenon, which began in the 1990s with Mauritius’ transition to a skills-based economy, has been accentuated in recent years due to several factors: a decline in the level of education, a lack of strategic capacity planning, and a mismatch between the supply and demand for skills. The COVID-19 crisis has further aggravated the situation, prompting many highly qualified professionals to move to destinations such as Luxembourg, Switzerland or Dubai, often for economic reasons and quality of life.
The panel saw that attracting and retaining local talent, as well as the Mauritian diaspora, requires a rethink of the educational and professional approach. The establishment of a program to repatriate expatriate talents, as well as better coordination between public and private institutions, were also recommended. It is essential to strengthen the links between industry and academic institutions, to integrate technology into continuing education and to offer a working environment aligned with the expectations of the new generations, especially in terms of work-life balance. personal. A cultural and organizational transformation must be initiated to ensure sustainable economic development and maintain Mauritius’ competitiveness as a relevant and attractive international financial platform.
Industry participants call for innovation, transparency and implementation
Industry participants were keen to respond to the discussions and to share their views and insights. Faraz Rojid, CEO of Mauritius Finance, highlighted issues of concern to the industry throughout the workshop across a range of topics, with a number of the association members participating in the panels. He saw that the idea of the consultation process was to find “concrete, implementable and tangible solutions for the future growth of the country”.
Speaking in the margins of the event, Atul Bhatia, Chief Fintech Officer of Emtel, who contributed to the discussion on behalf of the payment app blink by Emtel, welcomed the invitation to the event, which he saw as showing the intent and the vision of the government in moving towards a more digital economy and focusing on digital payment ecosystems. “Since we launched blink by Emtel nearly 3 years ago, we have focused on providing innovative and efficient services for consumers. The MAUCAS platform launched by the Bank of Mauritius has broken a lot of barriers, allowing Fintechs like us to enable the ecosystems in Mauritius and make financial transactions efficient and instant for consumers. This enhances financial inclusion which supports the digital economy.”
“Emtel has always been at the forefront of innovation and technology, bringing many firsts to Mauritius and the region. We will continue to do so. We are eager to work closely with all stakeholders. We look forward to working closely together with Government and regulators to see how we can support the building of a resilient technology infrastructure which will form the foundation of a robust, secure and effective Fintech ecosystem”. He also thought it was important to prepare for the AI revolution which is coming, with a lot of work to be done on the basic infrastructure at government level, and pledged Emtel’s full support for the consultation process and building the country’s financial sector.
Panellist Jessica Naga, CEO of MINDEX Group, welcomed the comments of the three ministers in the realm of blockchain, technology and AI, which demonstrated clear policy interest in virtual and digital assets. “This is going to be IFC2.0. We have believed at MINDEX, for quite a while, that tokenisation of real world assets, of financial instruments and securities will become mainstream and will replace traditional assets because of the advantages that they bring, of fractionalisation, immutability of the blockchain, the speed and reduced costs of transactions, as well as the connection between international players more easily. The assets will move the same way that crypto moves, on the same rails. We saw this a long time ago but now it has been spoken and it was great to hear. I thought that being on a panel with traditional players I would feel like an outlier, but I certainly did not feel like an outlier today,” she commented.
Panellist Ashish Jagarnath, Director of International Proximity, hoped to see some good results going forward and thought it was important for policymakers and all stakeholders to “walk the talk’, and not only to have ideas that are not implemented. He noted that there had been a lack of an implementing team, which meant that some past committed actions had not been completed. He saw that there was a need for “a dedicated implementing team with adequate resource with clearly defined KPIs, accountability, governance, making sure that senior people come and that they are replaced if there are unable to attend. This is why some past actions have not come to fruition”, he concluded.
Shahannah Abdoolakhan, CEO of compliance firm Abler Group, welcomed the roadmap discussion that had unfolded and saw that it was “a great initiative to bring the key players together”. She suggested that implementation would require ongoing engagement, ideally through structured focus groups that would include a broad representation from both the public and private sectors. From the compliance standpoint, she also underlined the importance of preparations for the next ESAAMLG evaluation expected in 2028 and urged that there should be an open and transparent process. “Some jurisdictions, such as the UAE, have embraced a more inclusive approach, allowing for wider industry participation in regulatory discussions,” she noted. She summed up that “I hope today is the beginning of a broader, action-driven dialogue that ensures our financial sector is not only prepared but positioned as a leader in the region”.
