It is a range of flexible financial facilities to small entrepreneurs. These seven new loan schemes announced in the 2022-2023 budget were launched on Thursday 25 August. As a side note, Director Jaywant Pandoo highlighted the DBM Energy which will engage in the production of green energy through 5 projects already defined.
These loans are mainly for small-scale farmers. Specifically, those who have been forced to abandon their agricultural land due to the various crises. This revitalisation also concerns sugar plantations. According to a report explained by the director of the DBM, it was noted that “more than 10,000 hectares have been abandoned, which has had an impact on sugar production in the country. He also added that “the DBM has 25 programmes based on four axes, namely food security, mechanisation, ICT and women’s empowerment. And the main focus is on green energy. Referring to the impact of COVID-19 on several sectors of the economy, “DBM has put in place special programmes to help entrepreneurs survive the crisis. Since July 2020, we have disbursed about Rs 4.2 billion for 13,316 applications.”
Tailor-made loans
Among these loans we find:
A loan for replanting fruits and vegetables of up to 90% of the project cost at an interest rate of 2.5% per annum, including land preparation, planting cost and purchase of inputs among others. The repayment period will be 7 years
The second loan is only for replanting sugarcane at Rs 60,000 per acre for uprooting, land preparation, planting cost and purchase of inputs at an interest rate of 2.5% per annum, over a repayment period of 5 years including a one year moratorium.
For both of the above, farmers will need to be registered with the Small Farmers Welfare Fund (SFWF) of the Mauritius Chamber of Agriculture or the FAREI.
The DBM is also advancing a tailor-made loan for SMEs of Rs 25 million at a special interest rate of 3.5% per annum. And Rs 20 million for small entrepreneurs registered with the CIDB.
The loan for installation of photovoltaic systems for individuals is up to Rs 250,000 at a concessional interest rate of 2% per annum to finance the acquisition and installation of solar photovoltaic systems on the roof of houses.
For the purchase of electric vehicles by taxi and van owners, the maximum amount is Rs 3 million, repayable over a period of 7 years at a concessional interest rate of 0.5% per annum.
There is also a maximum loan of Rs 100,000 at 0.5% per annum repayable over a period of 5 years for upgradation and beautification of school infrastructure registered with the Special Education Needs Authority (SENA).
The DBM director also announced the extension of loan schemes, including the COVID-19 interest-free loan for SMEs and the COVID-19 special support scheme of Rs 1 million, credit facilities for companies with a turnover of up to Rs 250 million, and the women’s entrepreneurship loan scheme, up to a maximum of Rs 500,000 at an interest rate of 0.5 per cent per annum repayable over 7 years.
DBM’s networks will be consolidated with three branches by the end of 2022 at St Pierre, Rivière des Anguilles and Bambous. There will also be the construction of two ‘Food Security Clusters’ at a cost of Rs 200 million each, at Henrietta and Rivière du Rempart, as well as the creation of five breeding areas at Henrietta, Salazie, Mare D’Albert, Petit Merlot and Ex-Tea Belt Road.
DBM Energy – 6.2 megawatts
As announced earlier, DBM will promote a green energy culture through DBM Energy. “We have been granted Independent Power Producer status in the last 2022/2023 budget, DBM has already signed an agreement with the CEB for the implementation of five projects. Three are already approved and the two are under evaluation as they exceed Rs 100 million investment,” Jaywant Pandoo announced. These projects will produce a total of 6.2 megawatts of electricity and it is expected that photovoltaic systems will be installed on DBM’s industrial buildings as well as on government infrastructure.
