The Building and Civil Engineering Contractors Association (BACECA) is forecasting a growth rate of 5% for the construction sector for 2021. The Association published its growth forecast on Thursday, July 08, which is much lower than the 25.5% growth forecast made by Mauritius Statistics.
Industry operators clearly do not share the optimism of the authorities. Its members stated that one of the reasons that will impact negatively on domestic growth this year is the fact that the major projects announced by the Government has been tendered to foreign companies.
Local contractors are now calling on Government to adopt a “Margin of Preference” to favor local businesses during procurement.
The Association has also flagged the financial risks linked to worldwide changes in consumption habits on the local real estate sector. The fact that both foreigners and locals are now working from home will mean less private investment in office spaces.
The real estate sector has served as a major driver of growth, attracting above 60% of foreign investments in Mauritius during the last five years.
