Mauritius: African Development Bank grants $240m loan to support economic diversification and competitiveness
The Board of Directors of the African Development Bank Group approved a loan of $240 million to Mauritius in Abidjan on 22 May 2024 to implement the second phase of the Economic Competitiveness and Resilience Support Program.
“Following the approval and implementation of the first phase of the Program in 2023, the aim of this second phase is to continue to support improvements in economic diversification and competitiveness, to improve the country’s resilience and achieve more inclusive, sustainable growth. The proposed programme will support the economic recovery following the Covid-19 pandemic, through fundamental reforms to improve the business environment and the real economy,” declared Kennedy Mbekeani, the African Development Bank’s Country Manager in Mauritius.
Several government measures will be supported, including the government’s approval of the fisheries framework bill to fill the gaps in current legislation, especially regarding unregulated fishing and the use of sanctions. This will help boost the fishing sector and offer Mauritians new employment and income opportunities. Another measure concerns the approval of the roadmap and strategic plan for the agriculture and livestock farming sectors 2024-2030 focused on increasing production for resilient food security, promoting sustainable, resilient production, as well as entrepreneurship and agro-industry.
The program’s second phase will also support the installation of rooftop solar panels (using 1.5 kilowatt-hour solar kits) for households with modest incomes. Beneficiaries’ monthly electricity bills will be reduced by 75-kWh for 20 years. The not only promotes the share of renewable energies in the energy mix and lower greenhouse gas emissions, but is designed to help reduce poverty among these types of customers.
The Mauritian Minister of the Economy, Planning and Development, and several other ministries responsible for the areas covered by the operation are the program’s direct beneficiaries. The private sector will also benefit from better investment opportunities in agro-industry.
