Suttyhudeo Tengur: "The Challenge is to Balance Social Protection and Budget Expenditures"

Suttyhudeo Tengur, a trade unionist and political observer, discusses the economic situation and current political events with his characteristic frankness. He believes that to restore dynamic consumption, it is essential to boost household confidence, enhance competition in the local market, and support real incomes through better-targeted taxation.

Since the reopening of borders post-pandemic, the Mauritian economy has embarked on a recovery trajectory, although this recovery is not uniform across sectors. The tourism sector, a significant contributor to GDP, has seen a notable rebound with a gradual influx of visitors, while financial services and ICT have maintained commendable resilience. However, many economic operators feel that the recovery remains fragile, hindered by rising import costs, persistent inflation, and a shortage of skilled labor.

The new government, in power since 2024, has attempted to restore confidence through a focus on budget consolidation and economic diversification. Yet, many small and medium enterprises, particularly in the restaurant, events, and agri-food sectors, are still struggling to regain their pre-COVID-19 margins. In summary, recovery exists but remains uneven and dependent on an unstable international environment. Operators are now seeking more predictability in economic policy, better exchange rate management, and reduced bureaucracy to expedite their investments.

Regarding the current government's first year in office and particularly the Ministry of Commerce, the results are mixed. Macro-economic indicators show positive growth around 5%, but this has not translated into tangible improvements in living standards. The Ministry of Commerce, under Michael Sik Yuen, has initiated visible measures such as establishing a Price Stabilization Fund to mitigate rising costs of essential goods. While this measure has temporarily protected consumers, it remains costly for public finances.

The domestic market continues to suffer from excessive reliance on imports. Initiatives to encourage local production or regulate importers' margins face challenges from the realities of the global market. The ministry's track record reflects a clear willingness to act, yet structural limitations persist. Better coordination between Commerce, Finance, and Agriculture is essential to translate announcements into sustainable policies.

Amidst ongoing debates regarding Paul Bérenger's resignation and its implications, it is evident that his decision lacked nobility, representing a late acknowledgment of exhausted leadership unable to adapt to a changing era. His departure would have granted Dr. Navin Ramgoolam a political gift, strengthening his mandate amidst an already divided and weakened opposition.

The issue of local labor shortages is exacerbated as many young Mauritians are drawn to emigration. This paradox reflects a structural mismatch between youth aspirations and the realities of the job market, where available jobs often fail to meet their expectations. To reverse this trend, it is crucial to rebuild pride in working in Mauritius, promote vocational training, and enhance social mobility.

In the realm of education, the introduction of a threshold of "three credits" for university admission aims to broaden access to higher education. While socially commendable, it raises concerns about academic quality and the perception of degrees. The debate around cannabis decriminalization remains contentious, highlighting the need for a rational dialogue based on scientific data rather than emotions.

Mauritius is navigating its geopolitical relationships, especially concerning foreign partnerships for its blue economy strategy. It aims to balance its alliances to maintain active neutrality amid regional rivalries. Ultimately, the country must prioritize sustainable development, enhance public awareness, and foster a more inclusive society that values human dignity.