Chosen by Beijing as its preferred partner in Africa, Mauritius became the first African country to sign a bilateral Free Trade Agreement with China in 2019. However, Mauritius has not yet agreed on sanitary and phytosanitary measures that should have enabled its businesses to take full advantage of the Free Trade Agreement.
Some in the Mauritian private sector are increasingly worried and vocal about their fears via their media channels. The China-Mauritius Free Trade Agreement was signed in 2019, and the treaty came into force in 2020. However, the authorities have not adhered to sanitary and phytosanitary measures, and businesses, especially in the agro-industry and food sector, cannot export to China and benefit from the terms of the Agreement for the time being.
According to the World Economic Forum, China intended to make Mauritius an investment entrepot and promote the island-state as a Renminbi clearing and settlement center for the region under the Free Trade Agreement.
Mauritian businesses fear Rwanda may overtake Mauritius as China’s preferred partner and investment recipient in Africa. Since the beginning of 2021, Rwanda has deepened its ties with China. It has signed an FTA with China, has agreed to Chinese sanitary and phytosanitary measures, and has ratified a Double Taxation Avoidance Agreement with China recently.
Rwanda is preparing to export Chilli products to China. The Chinese market for Chilli products is worth $57 million. The margin of profits is estimated to be above 40%.
