Small and medium businesses are the lifeblood of our economy as well as a powerhouse of growth and employment, and this is why, during the last two years, Government has provided its full support to Small and Medium Enterprises (SMEs) through the Wage Assistance Scheme and financing of the additional renumeration. Government will spare no efforts to nurture the growth of small and medium businesses.
The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy made this announcement, this evening, during the presentation of Budget 2022-2023 in the National Assembly in Port Louis.
Dr Padayachy recalled that, through the Development Bank of Mauritius (DBM) and the Industrial Finance Corporation of Mauritius Ltd, some Rs 4.7 billion have been approved as loans and equity financing to more than 12,000 SMEs. He highlighted that the SME Act will be amended to review the definition of SMEs as follows: Micro-Enterprise from a turnover of Rs 2 million to Rs 10 million; Small Enterprise from a turnover above Rs 10 million and up to Rs 30 million; and Medium Enterprise from a turnover above Rs 30 million and up to Rs 100 million.
He stated that all companies with a turnover of up to Rs 100 million will henceforth be categorised as SMEs instead of Rs 50 million currently. A Mid-Market Enterprise with a turnover up to Rs 250 million will now be included as a new category under the SME Act and this will effectively enable some 142,000 enterprises to benefit from improved access to government support programmes, and financing, he added.
Some other measures announced by the Finance Minister are: the extension by the DBM of the SME interest free loan scheme and the Covid-19 Special Support Scheme up to June 2023; the consolidation of the DBM network, with the opening of three new branches at St Pierre, Rivière des Anguilles and Bambous by end of 2022; the allocation of Rs 5 billion by the DBM to support SMEs, Mid-Market Enterprises and entrepreneurs; and the setting-up of a Venture Capital Fund of Rs 5 billion targeting SMEs and Mid-Market Enterprises by the Mauritius Investment Corporation Ltd.
As far as the Cooperative sector is concerned, Minister Padayachy indicated that Budget 2022-2023 provides for a 50 percent grant up to Rs 500,000 for the purchase of recycling equipment and transportation vehicle from local suppliers.
Furthermore, he underscored that Government will continue to support the expansion of the manufacturing sector by giving due recognition to locally manufactured products and encouraging exports of Mauritian goods. He also stated that, in a bid to promote locally manufactured products and encourage a buy local culture: the Virtual Exhibition Platform for locally manufactured goods at the Economic Development Board (EDB) will be operational as from October 2022; a “Semaine de l’Industrie Locale” will be organised to promote the “savoir-faire” of Mauritian enterprises; and the EDB will identify products to obtain geographical indication and its label.
A series of measures to maintain the momentum in exports were also announced by Minister Padayachy. They are:
- The extension of the Freight Rebate Scheme (FRS) and the Trade Promotion and Marketing Scheme (TPMS) up to June 2023;
- SMEs will benefit from the Freight Rebate Scheme on the South African market;
- Exporting agents of locally manufactured products will also be eligible to the TPMS;
- The 50 percent reduction in port charges on exports will be maintained; and
- the SME International Fairs Refund Scheme will be opened to freeport operators.
In addition, to support local industries in exporting to the region, Government will charter two regional feeder vessels. Phase 1 “La Route de l’Inde” will start in September 2022 and service the South Asian route including India, Sri Lanka and Seychelles, while Phase 2 “La Route de l’Afrique Orientale” will be launched in November 2022 and service the Eastern African countries notably Madagascar, Tanzania, and Kenya.
