Amédée Darga, Managing Director of StraConsult: "The country is stalled on the issue of wealth creation"

Amédée Darga, the Managing Director of StraConsult, stated, "Can Mauritius really become the Singapore of the Indian Ocean?" He believes the potential is there, but it is crucial to create actual wealth, which can start immediately by focusing on four strategic areas: industrial investment, logistics, agriculture, and the blue economy.

Darga expressed concern that Mauritius lacks ambition, remarking during the show "At the Heart of the Info," hosted by Prem Sewpaul on Thursday, December 4, that the idea of Mauritius becoming like Singapore is seen as "illusory" by society, the government, and various stakeholders. However, he insists that Mauritius still has the capability to achieve this goal, highlighting its many advantages that could lead to better outcomes than its current performance.

To move forward, Darga emphasizes the need for economic governance, which is about developing a growing wealth for the country. He illustrated this with the example of a large family owning 900 acres of land but only selling a few each year, thereby living off that sale. He argues that Mauritius is in a similar situation; without creating more wealth, it will continue to circulate the same money.

Darga pointed out that Mauritius has been struggling with wealth creation for several years, criticizing government programs for their lack of clear objectives and ineffective implementation. He noted that while discussions about the blue economy have been ongoing since 2012, there has been little tangible progress 13 years later.

He voiced concerns that the country's GDP heavily relies on consumption and two volatile sectors: finance and tourism. A geopolitical shock could destabilize the financial sector, and the COVID-19 pandemic clearly demonstrated the fragility of tourism.

Darga identified the core issue for Mauritius as not being the market, but rather the production capacity. He pointed out the vast African market available, with agreements allowing near duty-free exports, but questioned what Mauritius could send if it does not produce anything. He compared Mauritius's manufacturing sector, which has decreased from 22% to 13% of its economy, to Singapore's, where manufacturing accounts for about 20% to 25%.

In terms of recommendations, Darga outlined four concrete measures to boost national wealth, emphasizing the need for foreign industrial investment rather than just investors looking to buy land. He suggested attracting investors willing to invest in productive industries and highlighted logistics development, agricultural revival, and the blue economy as crucial areas to focus on.

He also mentioned that only five ministries are primarily concerned with the economy: Industry and SMEs, Finance, Agriculture, Financial Services, and Tourism, and urged the government to set clear, actionable objectives for these ministries. He criticized the inefficiency of committees and called for a small, competent team to ensure that goals are achieved.

In a related opinion, Amit Bakhirta, founder and CEO of ANNEAU, echoed Darga’s sentiments, saying every Mauritian should strive to make Mauritius the Singapore of the Indian Ocean while acknowledging the challenges ahead. He pointed out that Singapore's success is attributable to strong governance and strategic proximity to China and the Asia-Pacific region, which absorbs the majority of its exports. Bakhirta believes Mauritius should draw inspiration from successful models like Singapore and Dubai without needing to reinvent the wheel, focusing on key areas like trade strategy, port development, the blue economy, and an attractive tax system.

D Drishtysingh Ramdenee, Secretary General of the Mauritius Chamber of Commerce and Industry (MCCI), added that Mauritius needs to carve its own path and focus on productivity, aligning workforce training with industrial needs. He emphasized that planning and execution must go hand in hand, as seen in Singapore’s approach.