[STC] A Record Surplus of Rs 3.55 Billion After Three Years of Losses

Ten months after being appointed as the chairman of the board of the State Trading Corporation (STC), Dr. Takesh Luckho presents an impressive first report marked by significant financial recovery and a comprehensive overhaul of the institution's operational methods.

The STC remains a strategic player for the state, responsible for importing essential products such as fuels, rice, flour, and cooking gas. However, upon his arrival, the organization faced a tarnished reputation, fueled by criticisms regarding the quality of certain products, like the ration rice, and ongoing concerns about its governance. "There was a negative connotation surrounding the STC," he acknowledges. The inherited situation? "Difficult," on several levels.

Revamping Procurement Procedures

One of the initial reform projects focused on procurement procedures. Until then, some international tenders were designed restrictively, limiting competition and discouraging certain operators. "Some suppliers had simply stopped participating because they felt they were wasting their time," emphasizes the board chairman.

"To address this situation, we formed a small team, a board committee, which met with legal advisors and procurement experts with the aim of opening the tenders wider and democratizing them. Thanks to this approach, more and more companies offering competitive prices were able to participate, which represents a great benefit for the STC. This exercise also allowed many subcontractors to return and attracted new ones ready to engage in the institution's activities. Concurrently, by demonstrating that the STC has changed, we work with a spirit of transparency and accountability: all decisions now go through the board, which has access to complete and accessible reports," he explains.

2025: The Year of Recovery

Financially, the 2025 fiscal year marks a clear break. After three consecutive years of losses, the STC recorded a record surplus of Rs 3.55 billion, with a cash flow close to Rs 5.3 billion, according to audited figures. This result is primarily attributed to improved procurement procedures and increased competition among suppliers, particularly in the fuel sector. "The new tenders have allowed us to achieve significant savings," states Takesh Luckho.

One of the major gains pertains to the premium applied to the import of gasoline and diesel, where the STC achieved approximately Rs 1 billion in savings in 2025. These savings contributed to a cumulative decrease of about Rs 2.75 per liter on fuels over the year.

Cooking Gas: An Asset Now Under STC Control

Another significant development is the resumption of control over the cooking gas storage infrastructure. In September 2025, the STC became the owner of its gas storage capacity, previously operated by the Singaporean consortium Petredec, now managed under STC Petroleum Limited. This acquisition allows the institution to decrease its reliance on third-party providers and build strategic reserves, thereby enhancing the country’s supply security. "It’s a strategic asset for Mauritius," insists Takesh Luckho.

Fewer Intermediaries, More Impact on Prices

In line with government directives, the STC also aims to reduce the use of intermediaries by favoring direct negotiations with allied partners or countries, for both fuels and certain strategic food products.

This approach is part of a broader consideration of the fight against the high cost of living. The issue of subsidies is addressed with caution in this regard. "Subsidies are not a long-term strategy," reminds the board chairman, advocating for more efficient purchasing mechanisms to maintain competitive prices without burdening public finances in the long run.

Looking Ahead to 2026

For the coming year, the STC sets clear and ambitious goals. "The priorities for 2026 are to combat the high cost of living, finalize agreements with historical allies for strategic and high-consumption products, and expand our import base by introducing new products to the market. The idea is to achieve more competitive prices than those on the open market. When prices drop, it reduces the consumer's cost of living," announces Dr. Takesh Luckho. The message is clear. "The STC is set to play a more significant role in 2026," he concludes.