{"id":23965,"date":"2022-12-22T10:33:42","date_gmt":"2022-12-22T10:33:42","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery"},"modified":"2022-12-22T11:33:52","modified_gmt":"2022-12-22T11:33:52","slug":"climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery","title":{"rendered":"Climate and Covid-hit Mauritius seeks resilience in its recovery"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span>The idyllic white sands of Mont Choisy are some of the most well-known in Mauritius, a country not short of scenic coastline. Beaches like Mont Choisy draw tourists to the African island, which lies on the Indian Ocean and is enveloped by a warm, turquoise lagoon, making it a popular destination for diving and snorkelling.<\/p>\n

But Mont Choisy is severely threatened by climate change. Projections indicate that one of Mauritius\u2019s most beautiful beaches will be underwater within 10 to 15 years, according to Amanda Serumaga, the UN Development Programme\u2019s (UNDP) resident representative for Mauritius & Seychelles.<\/p>\n

\u201cNow, why does that matter? Not only because it\u2019s a beautiful place, but obviously because it\u2019s a huge income earner \u2013 Mauritius is about tourism to a certain extent,\u201d Serumaga tells African Business.<\/p>\n

To protect the beach, in June 2019, the UNDP and Mauritius\u2019s Environment Ministry made an artificial coral reef to help reprofile the beach escarpment eroded by higher water levels and damaged by warmer temperatures.<\/p>\n

The reef attenuated the waves, meaning that they could hit the beach in a way that caused less erosion, and allowed the restoration of vegetation along the coast.<\/p>\n

Climate change also causes the heating of the ocean that kills coral which in turn impacts the marine ecosystem, impacting the food security of local communities.<\/p>\n

Climate change is just one of the factors troubling the island\u2019s tourism industry. In 2020, the island adopted a \u201czero Covid\u201d policy and a strict lockdown, meaning all the resorts were empty of tourists.<\/p>\n

Annual tourist visitors fell from 1.4 million a year \u2013 more than the island\u2019s population of 1.2 million \u2013 to close to zero. In 2019, before the Covid-19 pandemic, 19.5% of the island\u2019s GDP came from tourism, which accounted for more than 100,000 jobs.<\/p>\n

That plunged to 8.3% in 2020 and 4.6% in 2021, according to data from Statista. To protect workers and businesses, the government stepped in with a huge stimulus, around 28% of the country\u2019s GDP, according to an IMF estimate.<\/p>\n

This included the state spending 18bn rupees (around $400m) supporting wages for employed and self-employed Mauritians, especially in hard-hit industries like tourism.<\/p>\n

With help from the central bank, the government established the Mauritius Investment Corporation to lend money to some of the biggest companies in struggling sectors, but in return, businesses were forbidden to lay off staff.<\/p>\n

The global economic environment is also weighing on prospects \u2013 annual inflation in 2022 was expected to rise to 11.4%, says the IMF, due to surging commodity prices, past depreciation of the rupee, and recovering domestic demand.<\/p>\n

Ken Poonoosamy, chief executive officer of Mauritius\u2019s Economic Development Board, a government agency that is tasked with promoting and facilitating investment in the island, says the government needs to ensure that the economy rebounds quickly enough to make sure public debt doesn\u2019t get too high. In fiscal year 2022, public sector debt was 88.1% of GDP after reaching 99.2% in 2020.<\/p>\n

<\/a>\u201cI know that the Minister of Finance and the technical teams are working towards reducing the debt, so there are strategies of reducing public expenditure, but at the same time, we have to invest in the capacity in the infrastructure landscape to ensure that Mauritius continues to remain competitive and attractive to the investor community and businesses,\u201d Poonoosamy says.<\/p>\n

He believes that Mauritius\u2019s tourism sector is close to recovering from pre-pandemic levels. \u201cThe numbers are not yet there, because, in 2019, we had roughly a little less than 1.4 million tourists,\u201d he says.<\/p>\n

\u201cSo this year I think the target is around 1 million tourists, so we\u2019re still not there.<\/p>\n

\u201d
\nBut he noted that tourists going to Mauritius now tend to spend more time in the country than before \u2013 14 days on average compared to nine before the pandemic.<\/p>\n

Despite the potential for \u201crobust growth\u201d \u2013 the IMF projects growth of 6.1% in 2022 and 5.4% in 2023, followed by a convergence to its pre-pandemic trend growth of 3-31\u20442 percent in the medium term \u2013 Poonoosamy said that there are some improvements the country could make in terms of the connectivity and capacity of its tourism industry.<\/p>\n

Many other sectors on the island are growing, including agriculture, manufacturing and ICT\/BPO (business process outsourcing), he says. Mauritius\u2019s real estate sector is growing too, with affluent Europeans and South Africans buying properties on the island \u2013 which allows foreign nationals to make a minimum real estate investment of $375,000 and apply for residency.<\/p>\n

\u201cI feel we\u2019ve managed to create niche segments where we have a competitive advantage, where investors look at the good returns on capital and where they find that the ecosystem is good for them to have an export market,\u201d Poonoosamy says.<\/p>\n

He refers to the manufacturing sector, noting how Mauritius started off making textiles and apparel in the mid-1900s and today has a strong jewellery export sector \u2013 around 90% of all jewellery produced on the island goes to foreign markets.<\/p>\n

Precision engineering and manufacturing of medical devices also bring in strong export earnings for Mauritius, he says. \u201cIn the agro-industry, we\u2019re looking at smart agriculture, smart farming, vertical farming, and bringing technology. In the financial services sector, there has continuously been an upgrading of innovative products that we want.<\/p>\n

And underlying all that, I think what matters is how do we bring innovation, technology and also look how we can move forward?\u201d
\n\u201cWe must recognise, though, that one of the biggest challenges at the moment is talent retention and manpower.<\/p>\n

And I think we have a great story to tell, there\u2019s so much that is going for us but we need to make sure that and that is why as a response, we are continually opening up the country to foreign talent skills and know-how.<\/p>\n

\u201d
\nThe Economic Development Board has set up a digital industry academy to \u201crespond to the needs of the industry in terms of growth potential, employability of people and ensuring that the right people have the skill sets to accompany the growth momentum.<\/p>\n

\u201d In February, Mauritius announced that it was offering long-term visas for remote workers.<\/p>\n

Seen by many foreign investors as a conduit between Africa and India, Mauritius\u2019s traditional sources of foreign direct investment (FDI) include France and South Africa.<\/p>\n

Most of the country\u2019s FDI comes from Europe, with investment from China down due to Covid-19 restrictions, but some also is coming from the Middle East, Poonasamy says.<\/p>\n

\u201cWith the closure of borders from China, it\u2019s not been that significant, but it will be restored once the borders are open. But I feel we are seeing quite some growth traction from emerging markets, including in Africa.<\/p>\n

\u201d
\nThe financial services sector remained largely stable through the pandemic, and in October 2021 the country exited from the Financial Action Task Force list of jurisdictions under increased monitoring \u2013 known as the \u201cgrey list\u201d \u2013 after making improvements in deficiencies in its regimes to counter money laundering and terrorist financing.<\/p>\n

It was removed from the analogous EU and UK lists soon after in an important boost for investment in the sector. Trade also offers cause for optimism.<\/p>\n

Poonasamy is animated about the opportunities that the African Free Continental Trade Area (AfCFTA) can bring, and the country has already forged links as a member of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).<\/p>\n

\u201cSouth Africa is now one of our main markets. We\u2019re exporting sugar to Kenya. We are exporting to a number of countries. With respect to the movement of capital, our enterprises are already investing in a number of places across East Africa.<\/p>\n

Challenges going forward
\nMauritius\u2019s blue economy, which includes coastal tourism, fishing, seafood processing and other maritime activities amounts to more than 10.5% of the country\u2019s GDP.<\/p>\n

That economy was severely impacted in July 2020, when a Japanese oil carrier ran aground on a coral reef off the southeast of the island, known for its biodiversity.<\/p>\n

In the following weeks, the MV Wakashio ship haemorrhaged an estimated 1000 tonnes of oil into the ocean. It was an environmental disaster for Mauritius and the government declared a state of emergency.<\/p>\n

More than 100,000 people \u2013 or one in every 12 people on the island \u2013 took to the streets to protest against the government of Prime Minister Pravind Jugnauth, which they accused of being slow to act on the disaster.<\/p>\n

The government however defends its record and worked again with UNDP and other partners to assess the spill and reduce damage. The government of Japan also provided financing to help monitor and mitigate the oil spill.<\/p>\n

A United Nations Recovery Fund to the tune of $2.5m was launched to support the government and impacted communities, which were unable to fish in those waters due to the contamination of marine life.<\/p>\n

Japan\u2019s Mitsui Lines Ltd, which chartered the MV Wakashio, contributed another $9.42m to the fund to help Mauritius, including the clean-up of the island\u2019s mangrove forests.<\/p>\n

\u201cWe were able to support communities to have alternative livelihoods,\u201d Serumaga says.<\/p>\n

\u201cSome people were able to start exploring, doing some kinds of agricultural work, and specifically permaculture and aquaponics.<\/p>\n

Other people were simply given new skills in the sector, so you have people who became able to work around tourism and scuba diving and those kinds of alternative livelihoods that would not be about fishing and getting food from the sea at that time.<\/p>\n

\u201d
\nLocal fishermen were instructed to fish at different sites or face serious health risks. By the end of 2020, most of the clean-up had finished and fishermen were able to go back to the impacted areas.<\/p>\n

But in an August 2020 report, Reuters quoted scientists, speaking anonymously, saying it was Mauritius\u2019s worst-ever environmental disaster and the effects on the marine ecosystem were expected to last for decades.<\/p>\n

Mauritius is widely seen as one of Africa\u2019s economic success stories, having transformed from a colonial sugarcane economy to the business and manufacturing destination it is today.<\/p>\n

But environmental disasters and the pandemic exposed the island\u2019s vulnerability to exogenous shocks. The main challenge going forward for Mauritius is to make its economy resilient to these shocks.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. The idyllic white sands of Mont Choisy are some of the most well-known in Mauritius, a country not short of scenic coastline. Beaches like Mont Choisy draw tourists to the African island, which lies on the Indian Ocean and is enveloped by a warm, turquoise lagoon, making it a popular destination for […]<\/p>\n","protected":false},"author":84,"featured_media":23964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[233,245,458,241],"class_list":["post-23965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-mauritius","tag-indian","tag-mauritius"],"yoast_head":"\nClimate and Covid-hit Mauritius seeks resilience in its recovery - Mauritius<\/title>\n<meta name=\"description\" content=\"The idyllic white sands of Mont Choisy are some of the most well-known in Mauritius, a country not short of scenic coast ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Climate and Covid-hit Mauritius seeks resilience in its recovery\" \/>\n<meta property=\"og:description\" content=\"The idyllic white sands of Mont Choisy are some of the most well-known in Mauritius, a country not short of scenic coast ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\" \/>\n<meta property=\"og:site_name\" content=\"Mauritius\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-22T10:33:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-22T11:33:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2022\/12\/postQueueImg_1671694784.49.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"450\" \/>\n\t<meta property=\"og:image:height\" content=\"252\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Climate and Covid-hit Mauritius seeks resilience in its recovery\",\"datePublished\":\"2022-12-22T10:33:42+00:00\",\"dateModified\":\"2022-12-22T11:33:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\"},\"wordCount\":1688,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2022\/12\/postQueueImg_1671694784.49.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mauritius\",\"Indian\",\"Mauritius\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\",\"url\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/climate-and-covid-hit-mauritius-seeks-resilience-in-its-recovery\",\"name\":\"Climate and Covid-hit Mauritius seeks resilience in its recovery - 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