The Minister of Finance faced the press on Thursday afternoon and answered every question put by members of the press. On the depreciation of the rupee, he explained that the problems encountered by the tourism sector have resulted in a halt in the inflow of foreign currency into the country. As a result, there was “high pressure” on the rupee.
He also insisted that all the measures that were taken were aimed at preserving jobs as was the case for the Wage Assistance Scheme. “Nearly 87% of the population earns a basic salary below Rs 25,000. That is why this scheme was necessary,” he added.
He stated that the government also had to take measures to preserve the purchasing power as well as the social fabric in the country. All this made it difficult to preserve the value of the rupee.
He indicated that the vaccination, quarantine and the fight against Covid-19 cost billions of rupees, which explains the Rs 2 per litre tax on fuel.
The Minister of Finance stated that it is at the age of 65 that a pensioner will get Rs 13,500 and specified that at the time this announcement was made, there was no economic crisis. Renganaden Padayachy insisted that the increase in the pension is not “a political measure”.
Government is working towards the economic recovery of the country so as to attain a positive and strong growth rate, said the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy.
Dr Padayachy rejoiced that, according to the World Bank, Mauritius is among the five countries which has put in place an array of measures in response to the economic crisis brought about by COVID-19. He also lauded the setting up of the Mauritius Investment Corporation Ltd (MIC) whose aim, he recalled, is to mitigate the contagion of the ongoing economic downturn to the banking sector, thus limiting macroeconomic and financial risks. He indicated that Rs 2 billion have been injected in the MIC in a bid to limit further depreciation of the rupee.
According to him, the MIC will help to preserve employment, enable the country to develop, while investing in strategic sectors. This innovative and people-centric initiative, he stated, will also secure and enhance the financial wealth of the current and future Mauritian generations.
Speaking about the re-opening of frontiers scheduled for 1st of October 2021, he emphasised the importance of vaccination while recalling that as at date, almost 60% of the population has already been inoculated. The ultimate aim, he underlined, is to inoculate 75% of the population and 100% of the adult population. As regards the number of active cases at present, he said that they stand at 2 600 among which four patients are in a critical state and some 70 who are unwell. He expressed confidence pertaining to the economic recovery of the country as the vaccination campaign is progressing rapidly.
He underlined that according to estimates, some 650 000 tourists are expected for the financial year 2021-2022 and as from October till end of 2021, some 300 000 are expected in Mauritius.
Rs 1 billion has been injected in the Mauritian Institute of Biotechnology
As regards local production of medicines and vaccines, Dr Padayachy emphasised the need to produce COVID-19 vaccines and other medicines in the country. He announced that some Rs 1 billion has been injected in the Mauritian Institute of Biotechnology to that end. Furthermore, he added that several international companies have submitted their application for the production of vaccines and medicines in Mauritius.
Dr Padayachy expressed confidence that the growth rate will be 9% for the financial year 2021-2022, with the reopening of borders which will bring in some Rs 30-40 billion as revenue from tourists. Government is also implementing a series of measures to boost several sectors of the economy, namely the manufacturing, ICT, financial, construction, real estate, and energy sectors.
He recalled extensive work is being carried out as regards the delisting of Mauritius from the grey list of the Financial Action Task Force. This, he said, will give a boost to the financial sector. As regards the construction sector, he pointed out that measures aimed at encouraging Mauritians to invest have been put in place.
In a bid to enhance cleanliness in the country, the Finance Minister announced that a National Environment Cleaning Authority under the chairmanship of the Prime Minister will be set up. Emphasis will be put on recycling, and producing sustainable and green energy.
