Africa-Press – Mauritius. The island of Mauritius has a multicultural and multi-ethnic population entirely composed of the descendants of migrants as a consequence of the different waves of migration to the country. Most groups in the population have retained strong ties with their ancestral homeland, language, religion and culture.
At the time of independence in 1968, fear of political instability as well as dire economic conditions led to significant immigration of Mauritian citizens to Australia, the UK and South Africa.
Following independence, the Mauritian economy, which was initially totally dependent on the export of sugar, was diversified and new economic avenues successfully explored.
Yet, the smallness of the country and perception of limited career opportunities by the youth has led to a brain drain of talented young Mauritians mainly towards the western industrialised nations.
When it comes to diaspora, Mauritius thus has diasporic connections with the countries of origin of its population as well as a Mauritian diaspora settled in different countries overseas. Diaspora connections have always held considerable importance for Mauritius especially for development.
As a resource poor and small island developing country which is facing growing economic challenges caused by the erosion of preferential trade agreements, loss of competitiveness of exports and decline of the sugar industry in the current neoliberal era, Mauritius has to seek alternative sources of foreign direct investment (FDI) and development strategies.
It is in this context that the Mauritian government seeks to harness the potential contribution of the Mauritian diaspora, especially in terms of skills and investment into the country. This paper examines the significance of the diaspora towards the development of Mauritius. Diasporas and development
It is known that members of the diaspora have been sending remittances to their families in their home countries, primarily to cover household expenses but also to purchase or invest in housing and land.
This inflow of income has been highly beneficial to the economies of the home countries, contributing to social and economic wellbeing and increasing foreign exchange receipts.
At the same time, there is growing realisation at the level of national governments and development planners that diaspora wealth offers far greater potential as a source of capital inflow for developing countries.
Members of a diaspora are known to maintain a shared and emotional commitment to each other and to their homeland regardless of the reason for leaving.
These individuals who retain an emotional tie to their homeland represent an important source of foreign direct investment (FDI), skills and ideas for development.
The potential of the contribution of the diaspora to the development of their homeland is a relatively more recent area of study and was only given serious consideration since the end of the twentieth century.
Mercer and Page (2014) identify three waves of policy measures adopted by national governments and development agencies geared towards enhancing the contribution of the diaspora to the development of the homeland.
The first wave entailed increasing the volume, accuracy and coverage of data on remittances and mapping and enumerating diaspora associations. The second wave sought to establish ways to encourage migrants to send a greater volume of remittances through more formal channels.
The most recent wave of policies seeks to capitalise on the wealth of the diaspora through the use of new financial products. Development practitioners and policy makers are examining the role of entrepreneurs from the diaspora in gearing investments toward their home countries, thereby creating jobs, stimulating innovation, and fostering networks (Newland and Tanaka 2010).
The focus is on channelling this inflow of foreign currency into more long-term development projects. Interest towards leveraging diaspora wealth for development financing has been growing.
The Chinese, Indian, Ghanaian and Malaysian governments for instance, have set up specific incentives geared towards encouraging high skilled members of their diasporas to not only share their skills but also invest in businesses at home (Terrezas 2010). Moreover, there are major differences between diaspora involvement in their countries of origin and non-diaspora FDI.
Investment by the diaspora into their homeland has been termed “Diaspora Direct Investment” or DDI and proposed as a more reliable alternative to FDI to help alleviate the downturn in investment from industrialised nations and traditional private sources (Devass and Ardobino 2009, 2).
DDI is conductive towards the integration of societies into the global economy through an interconnectedness of donations, small and large investments, trade, tourism and unilateral transfers.
There is a significant difference in the motives and pattern of diaspora investments or DDI from that of traditional FDI. DDI relies on a transnational social network made up of migrants and migrant mechanisms operating between host and home countries (Devass and Ardobino 2009).
The latter are key players because they have deeper knowledge of their homeland and culture. Members of the diaspora are also more likely to be better informed on the capabilities and requirements of domestic labour and the kind of training required in the local labour market, leading to more efficiency and benefits from diaspora investments.
Moreover, the emotional and social investment concerns of members of the diaspora may lead them to retain their capital in the investment-destination country rather than repatriate profits. In order to draw DDI, developing countries need to plan and implement institutional reform and a package of incentives.
Here, the state has a key role to play towards establishing an economic environment suitable for multinationals, and providing further enticement in the form of additional financial incentives and political risk insurance (Devass and Ardobino 2009).
However, the involvement of diasporas as agents of development can also carry some shortcomings as the developmental activities of diasporas may actually perpetuate existing patterns of spatially uneven development at different scales (Mercer and Page 2014).
In the absence of a customised and comprehensive approach, the optimal growth of diaspora investment and entrepreneurship will be limited. A government’s strategy for engaging with the diaspora will need to encompass certain key elements.
These include: identification of goals, mapping of diaspora geography and skills, creation of relationships of trust between the diaspora and government of origin as well as with governments of destination countries, and the mobilisation of the diaspora to contribute to sustainable development (Newland 2010).
India and China have been encouraging diaspora entrepreneurs and highly skilled professionals to invest and develop activities in their countries of origin.
The Indian government set up a High-Level Committee on the Indian Diaspora to examine the location, situation and potential development role the diaspora could play.
This led to a new direction in India’s diaspora policy and the creation of the Ministry for Overseas Indian Affairs in 2004 (Newland 2010, 18). The government of Ghana has been directing resources towards the management of migration data.
In September 2018, President Nana Akufo-Addo of Ghana declared 2019 “The Year of Return” for African descendants’ travel to Ghana. This announcement led positive reactions from the African American community in the United States and strengthened connections between Africans and their counterparts in the diaspora (Mills 2019).
Ancestral diasporas and development in Mauritius Diasporic identification and connections are strongly anchored in postcolonial Mauritian society and the government has maintained good relations with the native countries or homelands of the ancestors of the Mauritian population.
Following the 2000 national election, the government of Mauritius incorporated two historical memories of diaspora into the national calendar of public holidays. These include: (1) the abolition of slavery in Mauritius on 1st February and (2) the beginning of Indian immigration to Mauritius on 2nd November.
On 20 September 2015, in collaboration with the French embassy, Mauritius celebrated the 300th anniversary of the arrival of and presence of the French on the island and the fact that Mauritius has remained a Francophone state.
Mauritius also has strong trade, economic, linguistic and cultural ties with France, India and China and receives significant developmental and technical assistance from these countries.
Economic and cultural links have also been forged with African countries, although specific country diasporic connections remain to be strengthened given the diverse ancestral origins of the former slaves.
France, a former colonial power, provides Mauritius with one of its largest sources of financial aid, and also promotes the use of the French language in Mauritius.
Mauritius undertakes significant trade with France and France has traditionally been one of Mauritius’s largest suppliers and customers, particularly of textiles (Metz, 1994).
France has assisted in the computerization of the government ministries in Mauritius, performed road feasibility studies and highway maintenance, undertaken livestock services and the construction of a cannery, and has granted Mauritius a loan of US$60 million to construct a large diesel-electric power station in western Mauritius, completed in 1992 (Metz, 1994).
French investment in Mauritius was estimated at 100 million Euros in 2014, as cited in an article in Le Mauricien of 14 September 2015. The French government sponsors and promotes the teaching of French language and French schools in Mauritius through different educational institutions such as the Alliance Française, Institut Français de Maurice and the Lycée Labourdonnais, among others.
In March 2015, during his official visit to Mauritius, the Indian Prime Minister, Narendra Modi referred to Mauritius as “Chotta Bharat” which means “Little India” and is a term rendered popular by former Prime Minister Indira Gandhi in the 1970s during her visit to Mauritius (Haidar, 2015).
Mauritius receives considerable development assistance from India. A history of the Indian diaspora as indentured labourers in Mauritius materialised in the Aapravasi Ghat, which is the original immigration depot and has become a UNESCO world heritage site. India has offered expertise and funding to help Mauritius move from its traditional economy of sugarcane and tourism.
The island has also benefited from assistance from India in civilian structures, building infrastructure, health, science and technology, information technology, building and consolidating the capacities of Mauritius as a financial services hub and now a petroleum hub.
India provides scholarships for Mauritians wishing to pursue higher studies in India and sponsors the promotion of Indian culture and languages through educational institutions such as the Mahatma Gandhi Institute, the Rajiv Gandhi Science Centre, Indira Gandhi Centre for Indian Culture, among others.
The Government of India has also given Mauritius a special economic package to assist with the realisation of five high-priority projects namely: the Metro Express project, the new Supreme Court building, provision of electronic tablets for primary school children, social housing units and the construction of the new ENT hospital.
The Sino-Mauritian cultural and diasporic links with mainland China remain strong in Mauritius. The Chinese Chamber of Commerce was set up on 8th December 1908 to safeguard the interests of the Chinese community in Mauritius, promote Chinese culture, and help members of the Chinese Community requiring assistance as a result of old age, sickness or infirmity.
Moreover, China has provided Mauritius with considerable assistance at the level of economic and technological cooperation and in the fields of culture and education.
China has assisted Mauritius with developmental projects, especially construction of a stadium, bridges and the airport terminal building, among other projects. The mutually beneficial cooperation between China and Mauritius began in 1982.
A number of Chinese companies are at present operating in Mauritius such as China Building Engineering Corporation and Yunnan International Company for Economic and Technological Cooperation, among others.
Since 1980, Mauritius and China signed an agreement for cultural cooperation and in July 1988, the Chinese Cultural Centre was inaugurated in Mauritius. China also offers scholarships to Mauritian students and professionals to pursue higher studies in China.
In the case of the African diaspora in Mauritius, given that slaves were brought from different African countries, building a diasporic connection has been more problematic.
Moreover, there was the perception that African slaves compromised the economic health of Mauritius during colonial times whereas the Indian diaspora contributed positively, and this still haunts the Creole population in current times (Lowe Swift 2007, 288).
This segment of the Mauritian population has often felt a sense of statelessness due to symbolic misrepresentation and misrecognition and lived experiences that are discrepant with current realities and standards of living in the country.
The government has taken some initiatives geared towards uplifting the status of African and Creole culture in Mauritius especially with the setting up of the Nelson Mandela Centre for African Culture in 1986.
Since its opening, the Nelson Mandela Centre for African Culture has played a major role in projecting a positive image of African and Creole culture in Mauritius largely through cultural and social activities such as exhibitions, publications, talks, and the performing arts.
In 2008, Le Morne Brabant mountain and the area in its vicinity was declared a UNESCO World Heritage Site and came to be known as the Le Morne Cultural Landscape. This site honours the memory of marooned slaves who had jumped off the mountain and lost their lives in an attempt to escape capture.
Mauritius also maintains strong economic, trade, political and cultural links with the African continent and is a member of the African Union and various regional African bodies including SADC and COMESA.
Despite some tensions and competition concerning the degree of importance attributed to ancestral diasporic connections, the latter have been highly beneficial to Mauritius especially with regard to development assistance, trade and education.
These links have also helped consolidate and preserve linguistic, cultural and environmental heritage in the country. The Mauritian diaspora Apart from the ancestral diasporas which have provided tremendous developmental assistance, Mauritius also has its own diaspora which is made up of Mauritian nationals who emigrated for different reasons.
In the wake of as well as soon after independence, Mauritius experienced a major wave of emigration. The 1960s was a time when Mauritius faced major economic and social problems and many Mauritians feared for their future on the island.
Mauritius was hit by two violent cyclones (Alix and Carol) that caused widespread devastation. These cyclones magnified the existing social and economic problems of Mauritius (Titmuss and Abel-Smith 1968).
Furthermore, the population was growing at an alarming rate relative to the resources of the country, reaching 3 per cent in 1958 and was estimated to reach 3 million at the end of the 20th century.
Professor James Meade predicted a Malthusian nightmare for Mauritius, given the potential for a demographic explosion, unemployment and poverty in the country (Meade 1961).
The fear of independence and economic recession among much of the population led to the emigration of large numbers of Mauritians in two waves (Bunwaree 2000).
The first wave occurred just before independence when many Franco-Mauritians and middle-class ‘gens de couleur’ emigrated. The bulk of the Franco-Mauritians left for South Africa and Australia, whereas the ‘gens de couleur’ moved to Australia and Canada.
Both groups left out of fear that their economic privileges would not be maintained and that there was no future for them in an independent Mauritius led by a Hindu dominated government.
The Australian government estimated that about 14,000 Mauritians left Mauritius between 1966 and 1972, some migrating to Australia (Selvon 2012, 201) whereas Dinan (1985, 21) estimated that 66,415 people emigrated from Mauritius between 1961 and 1982.
The main destination countries included Australia, Britain and other European countries as well as Canada. In Australia, Mauritians settled mainly in Melbourne and the Mauritian diaspora there has maintained close links with Mauritius (Selvon 2012).
The second wave began in the 1970s when thousands of Hindus together with members of other communities emigrated because of the precarious economic conditions prevailing in Mauritius at that time. This group of Mauritians moved to the UK to work as nurses or took up other jobs in France.
The then prime minister, Sir Seewoosagar Ramgoolam had discussed the possibility of facilitating Mauritian immigration to France with the French government and set up a ministry of immigration that encouraged Mauritians to migrate to other countries because of severe unemployment in the country (Selvon 2012, 202).
Moreover, when Australia opened its doors to migrants from non-European backgrounds in the mid-1970s, many Mauritians from different ethnic groups left for Australia.
Apart from Mauritians who left from the mid 1960s to the 1980s because of the difficult economic conditions in the country, and for some, fear of independence, there has been a steady flow of emigration of highly skilled Mauritian youth mainly to the western developed countries in Europe, North America and Australia.
Most of these Mauritian youth left the country to pursue higher studies overseas and did not return to work in Mauritius, opting to pursue a career and settle abroad, thereby causing a brain drain.
In 2018, 8,200 young Mauritians went overseas for university education, with the most popular places being France/La Reunion with 1,700 students (20.7 %) followed by Australia with 1,530 (18.7 %), United Kingdom 1,200 (14.6 %), and China 1,156 (14.1 %) (TEC 2019).
While many of these students are self-funded by their families, 68 students receive scholarships from the government of Mauritius and one from the Mauritius Commercial Bank (MCB) under the MCB Foundation Scholarship.
These scholarships, known as the laureate scholarships, are very prestigious and are offered to the 45 students on base of academic merit and performance whereas 24 students are awarded on the basis of academic merit and social criteria.
While the laureate scholarship scheme has its merits, the heavy investment required by government to maintain this scheme is increasingly being questioned, more so because most of the laureates do not return to Mauritius after completion of their studies.
This situation represents a drain on local resources, loss of skills and talent and a subsidy for the economies of developed countries. Moreover, with quality higher education being available in local universities, the maintenance of such schemes becomes increasingly questionable.
In 2004, the Mauritian government set up a circular migration scheme with different countries, geared towards enabling unskilled and semi-skilled Mauritian citizens with an entrepreneurial spirit but having limited resources, to take up temporary employment overseas.
This would enable them to acquire the necessary skills and capital to set up their own business upon return, thereby contributing towards development.
This was a short-term temporary migration strategy which aimed to maximize the development potential of migrants returning home after a limited stay abroad; encourage the flow of remittances to enhance development impacts; and facilitate the return of the Mauritian diaspora.
However, this scheme has so far had limited impact (Jahangeer-Chojoo 2018). The Mauritian diaspora has therefore been growing and its significance in terms of numbers, skills and resources, and its potential to contribute to the development of Mauritius especially though DDI is indeed substantial.
Mauritian authorities have gradually given greater recognition and acknowledgement of the potential the Mauritian diaspora to contribute to the development, growth and progress of Mauritius.
In his keynote address at the Migration Dialogue for Southern Africa in 2006, the then Minister of Foreign Affairs, Madan Dulloo indicated that Mauritius was taking interest in its diaspora worldwide, which was estimated to be about 120,000 and almost 10 percent of the Mauritian population at that time (Selvon 2012).
Despite being one of the leading economies in the African region, Mauritius has had to restructure and diversity its economic activities. With the decline in the world price of sugar, phasing out of preferential trade agreements for Mauritian sugar exports to the EU and growing need to diversify the sources of revenue, the real estate sector was strategized to become a major pillar of the Mauritian economy.
Land that was previously under sugar cane cultivation was earmarked for real estate development under new schemes geared towards attracting high net worth investor migrants into the country (Ramtohul 2016).
Wealthy foreigners mainly from France, South Africa and the UK have been purchasing luxurious properties and obtaining permanent residence in Mauritius.
While these real estate investor migrant schemes have brought considerable FDI into the country, they have received significant criticism from society for creating gated communities and enclaves for the rich.
For such ventures, DDI would be a viable and reliable source of investment and revenue into the country and the presence of the diaspora would not alienate the local population. As such, it becomes important for the state to find proper avenues to tap into this potential. Reaching out to the diaspora
The Government of Mauritius recognizes the fact that the Mauritian diaspora overseas includes a substantial number of individuals who have gained international experience, distinguished themselves in several professions and fields, acquired entrepreneurial insight and accumulated savings that could be invested in Mauritius with the right incentives.
Key informant interviews carried out by the International Organisation for Migration (IOM) highlighted the following broad categories within the Mauritian diaspora (IOM 2014):
Retirees who are mainly first- or second-generation migrants who want to settle down in or at least have a second home in Mauritius; Older migrant professionals, mainly in nursing, who have already acquired properties such as care homes and those who went into business or the academe.
Younger, more recent migrants who have worked hard and are now becoming established; The silent category, who are mainly economic migrants who did not have specific skills at the time of migration but have worked their way up to reach financial stability.
However, the Mauritian diaspora is not organised and government is aware of the need to identify and encourage Mauritians and their descendants with talent, skills, know-how and capital to invest in Mauritius.
In 2007, the Government of Mauritius sought the assistance of the IOM to attract investment from the Mauritian diaspora as well as to open new avenues for Mauritians to learn new skills and gain work experience overseas and accumulate savings before returning home to invest in any business endeavour.
In the context of Government’s policy to encourage the Mauritian Diaspora to return to Mauritius and to participate in the development of the country, the IOM financed a study on the Diaspora Mobilisation Strategy.
This study which was submitted in May 2007, recommended the following: To encourage the diaspora to invest in projects of the Empowerment Programme. To involve the diaspora in collaborative research and development projects. To advise banks on the provision of attractive schemes that will offer competitive returns to the diaspora.
To reach out to the diaspora through the Board of Investment (BOI), which has been rebranded as the Economic Development Board (EDB), and is the apex body for investment in Mauritius, as well as to provide information on the new business environment in Mauritius.
Government, together with parastatal bodies, have initiated and implemented incentives geared towards attracting members of the diaspora back to Mauritius.
The Mauritius Research and Innovation Council (MRIC) developed a database consisting of a “Diaspora of Mauritian Experts”, but the IOM called for a holistic strategy on mobilization of the Mauritian diaspora (IOM 2014).
In fact, the IOM recommended setting up policies specifically geared towards attracting investors and highly skilled individuals from the diaspora to Mauritius in a manner that did not contradict national employment policies and affect the chance of nationals to acquire similar opportunities in their own country (IOM 2014).
Such an approach was expected to help maximize the benefits of migration and development for Mauritius. In February 2018, the University of Mauritius organised an International Conference of the Mauritian Academic Diaspora (ICMAD).
This conference brought scholars from the Mauritian diaspora who were working at universities overseas to the University of Mauritius to present some of their pioneering research and to interact and network with scholars based in Mauritius.
The aim was to build a scholarly network and to tap into the potential provided by the Mauritian academic diaspora given their expertise, exposure and resources available at the universities they worked for. This could benefit scholars and universities in Mauritius.
Therefore, apart from the developmental and investment potential of returnees, the organization also focused on the impact on travel and tourism in Mauritius, by encouraging the diaspora to return to the homeland, whether permanently or on vacation with friends and family.
It received the support of Air Mauritius and the Mauritius Tourism Promotion Authority (MTPA) in this venture. At the level of government, in the 2015 budget, the then Minister of Finance, Mr Vishnu Lutchmeenaraidoo highlighted the persistence of the problem of the brain drain and ensuing loss of highly qualified and experienced Mauritian professionals to the country.
A new scheme called the Mauritian Diaspora Scheme was designed and launched in October 2015. It offered an ambitious package of fiscal incentives to attract skilled members of the diaspora who had worked a minimum of ten years overseas back to Mauritius, namely:
Exemption from income tax for a full period of ten years on all their income including worldwide income. Exemption from payment of customs duties of up to a maximum of Rs 2 million on a car that could be purchased in Mauritius or abroad.
Entitlement of members of the diaspora to bring back their personal belongings without payment of customs duties and value added tax (VAT). Any member of the Mauritian diaspora who has been living and working overseas prior to 24 March 2015 is eligible to apply.
Those who do not hold a Mauritian passport will be granted a permanent residence permit together with their spouse and dependents. The Economic Development Board (EDB) manages the Mauritian Diaspora Scheme.
The scheme focuses on attracting members of the diaspora back to Mauritius in order to contribute to and participate in the development of the country. It aims to attract younger skilled professionals in scarce skills areas from the diaspora as well those who had acquired significant wealth overseas.
The Mauritian Diaspora Scheme targets the diaspora and DDI in the real estate sector would be less alienating to Mauritian society than the sale of land to foreigners.
In fact, following the 2016-2017 budget, the government introduced a new real estate scheme known as the Property Development Scheme (PDS) which obliged the property developers to sell at least 25 per cent of the residential units to Mauritian citizens or to members of the Mauritian diaspora.
The PDS replaced the previous real estate schemes, namely the Integrated Resorts Scheme (IRS) and Real Estate Scheme (RES), which had been criticised for excluding Mauritians and creating enclaves for foreigners (Ramtohul 2016).
However, the obligation to sell at least 25 per cent of residential units to Mauritians and to the Mauritian diaspora was subsequently lifted in 2016 following complaints from developers about difficulties towards selling to this category of buyers.
The cost of each unit which is at least $500,000 USD is beyond the reach of most Mauritians and probably to many from the diaspora as well. As at 31 August 2016, the number of applications received by the EDB was 98, out of which, 46 applications had been approved.
The bulk of the returnee Mauritians were from the UK with 22 and France with 12. The main purpose of return of the latter was to undertake work as a professional or to set up a business as self-employed.
However, the Mauritian Diaspora Scheme appears to have had limited success so far. The findings of a study undertaken by Jahangeer-Chojoo (2018) reveal that the Mauritian diaspora is mostly unaware of the Mauritian Diaspora Scheme. As at July 2018, the scheme had attracted only about 100 members of the diaspora (Anganan 2018).
Moreover, young and skilled professionals in the diaspora are not attracted by the lower salaries prevalent in Mauritius which are equivalent to nearly half of the salaries they would earn overseas (Anganan 2018; Jahangeer-Chojoo 2018).
Many members of the Mauritian diaspora are also very critical of the Mauritian government, local institutions and the politics of the country. They left Mauritius because of sentiments of a lack of meritocracy, unfairness and corruption in their homeland.
Moreover, although many members of the diaspora do invest in land or a house in Mauritius as a primary symbol of belonging, there is no clear indication as to whether they intend to invest further in the country (Jahangeer-Chojoo, 2018).
There is therefore a need for government together with the private sector and other stakeholders to reach out to the diaspora in a more comprehensive and wholistic manner than is currently being done in order to tap into the potential benefits of DDI for the country.
This is an area which presents clear potential for Mauritius to benefit from DDI as well as human capital, but it needs to be planned and managed more effectively. Conclusion Mauritius has benefited considerably from its ancestral diaspora connections with France, India and China.
The developmental, financial, technical and educational assistance from these ancestral diaspora nations have contributed significantly to the development and progress of the country.
Yet, with the growing significance and size of the Mauritian diaspora living and working overseas, and the looming economic challenges that Mauritius faces in the current global age, the potential that the Mauritian diaspora presents for investment and development has been recognised.
Many Mauritians left the island for better economic opportunities overseas, but they still maintain a strong sense of belonging to the homeland and regularly visit their families living on the island.
Although the government plan to harness investment and a greater contribution from the diaspora is a laudable initiative which targets DDI and at the same time, rewards returnees, it has so far had limited success in attracting members of the diaspora back to Mauritius.
What is missing from the policy measure in Mauritius is the building of trust between government and diaspora communities. As underscored in the Mexican case, trust between diaspora groups and government is capital for the success of policy measures to encourage the diaspora to return and/or invest in their home country.
Celebrating the diaspora is another measure which has so far been neglected in Mauritius but which has been highly successful for Ghana. More concerted action is therefore required, especially in the current and post-covid-19 times which present difficult economic times ahead.
Mauritius will need all the resources and skills it can obtain and reaching out to its diaspora assumes greater significance. The Mauritian case study therefore highlights the key avenues where diaspora connections are enabling factors towards development.
But it also indicates that the state needs to act concretely to be more welcoming and inclusive towards the Mauritian diaspora for the greater good of the country.
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