By Nigaar Abubaker-Esmael
As Mauritius gets ready for the next National Budget, most conversations are focused on economic growth, taxes, and financial targets. However, economic growth cannot happen without a strong foundation of transparency and accountability. As we look back at last year’s promises and ahead to the upcoming policy announcements, our governance framework needs an honest review. If we want our country to achieve real, inclusive growth, we must look past simple financial spending and fix the practical gaps that are slowing down progress in our national governance systems.
The biggest worry right now is that our national Corporate Governance system has completely stalled. The National Code of Corporate Governance was supposed to be updated to match modern international standards, but no action has been taken so far. Even worse, the National Corporate Governance Committee was dissolved after the last general elections and has still not been replaced. This institutional gap is dangerous. Today, global business runs on Environmental, Social, and Governance (ESG) rules and climate responsibility. These are no longer just optional boxes to tick; they are vital to keeping investor confidence. Without a working National Committee to guide companies and update the Code, Mauritian businesses risk falling behind. We need a clear mandate and proper resources to bring this committee back immediately, creating a roadmap that builds sustainability directly into our local corporate culture.
We also need to address the structural barriers that continue to limit diversity at the highest levels of our businesses. The introduction of a 25 per cent target for women on the boards of listed companies was intended to help narrow the gender gap in corporate leadership. However, data published by the Mauritius Institute of Directors (MIoD) and the Stock Exchange of Mauritius (SEM) indicates that the objective remains far from being achieved. Since the measure was introduced in the 2023–2024 Budget, only 20 per cent of listed companies have reached the 25 per cent threshold, while the remaining 80 per cent continue to fall short.
At the same time, an unintended consequence has become increasingly apparent. The pool of women regularly considered for board appointments remains relatively narrow, resulting in the same individuals being appointed repeatedly across multiple boards, particularly within unlisted companies. This concentration of appointments risks creating an overreliance on a small group of directors, while many other highly qualified and board-ready female professionals remain overlooked. If we are serious about broadening participation in corporate leadership, the focus must shift towards expanding the pipeline of talent, improving succession planning, and ensuring that board recruitment processes cast a wider net. Consideration should also be given to limiting the number of boards or committees on which a single individual may serve concurrently, thereby creating opportunities for a broader range of experienced professionals to contribute.
Turning the lens inward, the way we manage state-owned enterprises (SOEs) and public bodies remains a massive challenge. In previous budget statements, the government promised to reduce inefficiencies, eliminate waste, and streamline parastatal bodies. Yet, the persistent findings of the Director of Audit show that little has changed. For instance, recent audits continue to flag the exact same structural issues year after year across public bodies, including serious mismanagement of public resources, millions of rupees lost in delayed capital projects, and severe inventory waste, such as pharmaceutical stock expiring in public healthcare storage. To make real progress, the state must introduce actual consequences. This means tying ministries and public bodies to clear, strict Key Performance Indicators (KPIs), cutting down on overlapping parastatals, and forcing public institutions to systematically fix the repetitive red flags raised by the Director of Audit.
Finally, as technology changes the way we work, we must address the rapid rise of automation and artificial intelligence (AI). While AI offers incredible tools to boost productivity, it also brings major operational and ethical risks if left unregulated. There is a strong expectation that a national AI Ethics and Governance Framework will be introduced to create a secure digital environment, alongside open data initiatives. However, new rules will be useless if smaller businesses cannot access the technology. A major focus must be placed on Small and Medium Enterprises (SMEs), which rarely have the financial power to adopt these advanced tools safely. Smaller businesses need targeted support, including direct technical assistance, specialised financing, and affordable access to secure digital infrastructure, to ensure that our country’s digital transition is safe, fair, and leaves no one behind. True governance reform is not an expensive burden; it is the ultimate shield for our economy.
True governance reform is not an expensive burden; it is the ultimate shield for our economy. Ultimately, the true measure of our upcoming budget cannot be found in financial calculations alone, but in our courage to modernise our institutions. By revitalising our corporate framework, widening the pipeline for diverse leadership, enforcing public sector accountability, and equitably regulating new technologies, we can secure our economic foundation. It is time to bridge the gap between policy promises and concrete execution. Only by embedding transparency and accountability into the core of our national strategy can Mauritius transition from mere economic growth to resilient, inclusive, and enduring prosperity.
