Local retail experts expect a 10% price hike in the prices of canned foods in the coming days due to the high freight costs. 40 feet containers from China to Mauritius can cost as high as $10,000 compared to $2,000 in 2019. What else should Mauritius worry about?
Here’s a list of the economic challenges that Mauritius has to face in the coming weeks:
- The value of the local currency, the Mauritian Rupee (MUR), compared to the United States Dollar (USD) and Euro (EUR), does not help the Mauritian consumer. The Consolidated Indicative Exchange Rates of the Bank of Mauritius shows that in May 2021, the MUR was at Rs. 40.90 and is now at Rs. 43.40. The EUR was at Rs. 49.50 in May 2021 and is now at Rs. 50.30.
In July 2021, the government re-established the Price Observatory to closely monitor and take action against the rising prices of essential commodities. The government also fixed the prices on essential items such as edible oil, canned tomatoes, milk powder, and margarine. The Ministry of Commerce has issued a press communique to reassure the public that prices on these products will remain unchanged.
- With the opening of the country’s borders in October 2021, it was expected that the flow of tourists and foreign currency would have ripple effects and relieve both small businesses and job seekers.
120,000 foreign visitors are expected in November, and passenger flows at the airport will reach 50% of pre-covid levels in June 2022. The 500,000 foreign visitors target set in June for 2022 by the government may not be reached. Industry experts fear that the high rates of new coronavirus cases and deaths linked to the disease may break the momentum and business confidence that resulted from the opening of borders. According to the Ministry of Health, 197 people have died from Coronavirus since March 05, 2021, and 42 have died last week alone.
- Since September 2021, the retail prices of Mogas (Rs. 50.70) and Gas Oil (Rs. 37.30) have remained unchanged. Industry experts report that there has been an 11% increase in oil prices in October 2021. Goldman Sachs International stated that oil markets remained highly undersupplied. It is to be expected that the international oil prices will become increasingly volatile amid an open disagreement between OPEC and the US on crude production.
