The South African Chamber of Commerce in Mauritius (SACC), in collaboration with ABC Banking Corporation, hosted a high-level Post-Budget Analysis and Q&A session on Thursday, 26 June 2025, at Le Suffren Hotel and Marina, with Honourable Dhaneshwar Damry, Junior Minister of Finance. The dialogue brought together investors, foreign professionals, and senior executives, and was attended by Her Excellency Dr. Hlamalani Nelly Manzini, South African High Commissioner to Mauritius.
Moderated by SACC President Bilal Adam, the session addressed core themes arising from the 2025–2026 National Budget, including tax reform, permit policy changes, investor sentiment, and the reorientation of Mauritius as a diversified, rule-based economy.
In his opening remarks, Bilal Adam reaffirmed the Chamber’s commitment to open dialogue and long-term national resilience:
“The feedback we’ve received since the budget has been sincere- sometimes difficult- but always constructive. And the fact that Minister Damry is here today, taking these questions head-on, speaks volumes about the kind of leadership we’re engaging with.” We want to see Mauritius remain a leading investment jurisdiction, not only in the Indian Ocean but globally. It is in this spirit that we thank ABC Banking Corporation for supporting today’s event and for being a consistent advocate for meaningful private-sector engagement.”
The Honourable Minister Damry, in a wide-ranging and candid exchange, acknowledged the concerns expressed by both local and foreign stakeholders:
“Mauritius is at a crossroads. We’ve been over-reliant on legacy sectors. This Budget signals our seriousness about reform. Yes, some measures are difficult, but not acting would be catastrophic. Our sovereign rating, debt levels, and credibility with global institutions demanded decisive choices.”
He framed the government’s approach around a dual compass: structural reform and social equity. The objective, he said, is a return to a lighter tax policy within two to three years- once public finances stabilise under the current fiscal consolidation plan.
“We are reconciling the weight of past choices with the demands of a future-ready economy. This moment calls for deliberate, disciplined action.”
Among the most discussed measures were the revised long-stay residency permits, the introduction of capital gains tax on property transactions, the 180-day presence requirement for retirees, and a shift to a two-tier tax regime. The Minister acknowledged investor unease, but emphasised legal clarity and compliance with global norms:
“Mauritius is a state of law. No provision will be applied retrospectively. Wherever there are legal engagements, they will be respected.We are shifting toward a rules-based migration and investment regime that enhances certainty, transparency, and international compatibility.”
He also addressed equity in fiscal contribution:
Minister Damry noted the importance of ensuring a fairer contribution framework, emphasising that those with greater capacity should play a proportionate role in sustaining national infrastructure. He highlighted the need to rebalance fiscal pressure away from everyday consumers and ensure that the benefits of growth are more equitably shared.
A key announcement during the session was the ongoing development of a Financial Services Blueprint, which will modernise regulation and introduce private wealth and family office schemes aimed at making Mauritius a credible hub beyond real estate:
Minister Damry explained that the Budget goes beyond short-term fiscal management, reflecting a broader strategy to position Mauritius as a credible and future-ready platform for global business—one that is agile, transparent, and aligned with sustainable development goals.
Additionally, Junior Minister Damry underscored the need to diversify foreign direct investment beyond real estate, encouraging capital flows into high-impact sectors such as technology, renewable energy, and innovation. He noted that new incentives are being designed to attract long-term, value-driven investment aligned with Mauritius’s future development priorities.
When asked what would happen if growth does not materialise and fiscal targets are missed, Minister Damry responded with confidence:
“We have contingency plans. But our preferred route is clear: we aim to reach fiscal stability through growth, not higher taxes. That means improving public-sector efficiency, reforming state-owned enterprises, and mobilising blended finance. We are not doing politics- we are doing intergenerational planning.”
He confirmed that institutional reform was already underway, including a reorientation of the Mauritius Revenue Authority (MRA):
“The MRA must evolve. It must be citizen-centric. The same applies across government. Rules-based, transparent, and accountable systems will be our legacy.”
He also hinted at the upcoming launch of a national AI and digital roadmap, led by Mauritius Telecom, aimed at improving tax efficiency, digitisation, and investment competitiveness:
“We want to digitise the entire economy. The faster we do it, the more transparent and inclusive our growth becomes.”
The Minister also responded to a question on the Chagos settlement, noting that the funds received would be divided between immediate debt repayment and the creation of a long-term national investment vehicle:
“Part of the funds will be used to reduce our sovereign debt, but another portion will seed a Future Fund- not a sovereign wealth fund in the conventional sense, but a long-term strategic asset,” he explained. “Inspired by Singapore’s Temasek and Australia’s Future Fund, this initiative is designed to ensure that the benefits of today’s geopolitical milestones can support fiscal stability and national development for generations to come.”
He added that, over time, the fund could become a meaningful contributor to GDP- just as Temasek contributes nearly 70% to Singapore’s national budget.
The event concluded with the South African Chamber of Commerce’s board formally presenting a letter of recommendations to Minister Damry, reinforcing its commitment to ongoing collaboration.
“We are in this together- Team Mauritius, one direction,” the Minister concluded.
About the South African Chamber of Commerce Mauritius
The South African Chamber of Commerce Mauritius is a non-profit network dedicated to promoting trade and investment between Mauritius and South Africa, providing networking opportunities, strategic insights, and advocacy support for its members.
About ABC Banking Corporation
Founded in 2010, ABC Banking quickly expanded internationally, establishing offices in Hong Kong and Dubai to strengthen Mauritius’s role as a gateway between Asia and Africa. It leads in private banking and wealth management while supporting local businesses through leasing and banking services. ABC Banking is part of ABCB Holdings, listed on the main market of the Stock Exchange of Mauritius.
