Sector Review
By our Industry LeadersWe reviewed the main measures announced in the National Budget 2023 - 2024 across some key sectors of the Mauritian economy. Click on the respective sectors to read more.
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Financial Services
Some interesting measures but this was not, and probably wasn’t meant to be, a game-changing budget for the sector.
While this budget includes some measures with good intentions for the financial services sector, none of them is game changing and they fell short of expectations, especially for the global business sector which is at a crossroad.
There is a renewed focus to ensure that our current AML/CFT framework meets international standards and best practices. This is a continued journey from the prior years’ budget measures and implementations.
Not surprisingly, the most profitable banks are asked to contribute more to the Government’s revenue with the change in the taxation rate, which is now flat at 15%. For banks with chargeable income of less than Rs1.5bn, the income tax charge shall remain unchanged.
The Digital Rupee shall become a reality with a pilot run planned for November 2023. However, not enough is said about the digital transformation of the financial services sector.
Key Financial Services measures announced in National Budget 2023 - 2024
Flat income tax rate of 5% for banks with chargeable income of up to Rs1.5bn and 15% for banks with chargeable income above Rs1.5bn.
Rolling out of the Digital Rupee in November 2023 on a pilot basis.
Reinforcement of AML/CFT framework with new set of legislative amendments.
To discover all the measures announced for the Financial Services sector, download our full Budget Brief.
Click here
Tourism
Little real ammunition provided to a key booming sector of our economy
Tourism players are in desperate need of quality staff as youngsters desert our hotels for cruise ships and better jobs elsewhere. Will the streamlining of the Occupational Permits and lowering of the threshold really help? We will need to wait to see the details to understand what has really changed.
However, many measures were announced in trying to make Mauritius more sustainable as a destination with incentives (e.g. PET bottle prices etc) and this will be welcomed as global tourism trends have accentuated the need for this, particularly for a long haul destination.
The Mauritius Tourism Promotion Authority (“MTPA”) budget of Rs500m is actually a reduction of 5% compared to the pre-pandemic budget in 2019. Will this be enough to meet the 1.4m tourists (vs 1.2m in FY23) and Rs100bn sector size targets (vs Rs80bn in FY23)?
Key Tourism measures announced in National Budget 2023 - 2024
Objective of transforming Mauritius into a Green-Certified Destination by 2030.
Promotion and Destination Marketing Budget for MTPA of Rs500m.
Increase in minimum wage to Rs15,000
To discover all the measures announced for the Tourism sector, download our full Budget Brief.
Click here
Agri-Business & Real-Estate
Drought and meagre pickings after a bountiful harvest for the sector in the last budget.
Land under sugarcane cultivation has almost halved in the last 20 years to 40,000 hectares. The Rs75m cane replantation scheme (c.350 hectares of cane) is well-intentioned but barely scratches the surface and I would question the use of state funds to prop up a declining industry.
Mixed results for the agro industry as some of the pleas of the representatives of the agriculture industry, small planters and livestock breeders remain unanswered. Their urgent need for foreign labour and the water scarcity/irrigation challenge have not been adequately tackled and will remain key obstacles in the country’s pursuit of self sufficiency.
There have not been any major measures announced for the real estate sector but an extension of existing schemes.
The measures announced for the blue economy leave us wanting more and it feels like another missed opportunity. There’s always next year.
Key Real Estate and Agri-Business measures announced in National Budget 2023 - 2024
Dearth of transformative measures for the Agro industry
The Minister has extended and amended existing measures with only a few smaller new programmes.
Home Ownership Scheme
Extension of the scheme for an additional year from 1 July 2023 to 30 June 2024.
Senior Living PDS
Residence permit to retired non-citizens and their family on the acquisition of a senior living PDS exceeding USD200k
To discover all the measures announced for the Agri-business and Real estate sectors, download our full Budget Brief.
Click here
Public Sector
Rebuilding Resilience
A Budget that fortifies our societal infrastructure.
Be it in schools, hospitals and coastal infrastructure, all these investments are key to better prepare us against unforeseen risks. The announced public sector measures could infuse our economy with renewed vitality. The Government should continue to foster a trusted collaboration with the Private Sector to implement these laudable measures. Citizens’ constructive engagement is also essential.
The Nation should benefit from a Public Infrastructure that would encompass technology and sustainability as core of its transformation. Effectively, the Government is attempting to build-back a smarter, and sustainability conscious Nation. It’s now time to make the Aspirations become Reality.
So let’s seize this spirit of togetherness that the Budget attempts to bring.
Key Government and Public Sector measures announced in National Budget 2023 - 2024
Healthcare
Enhancement of health services by allocating Rs15.7bn.
Disaster Management
Rs3bn earmarked for infrastructures works in flood prone regions.
Sustainability
Investment to achieve a 60 percent electricity production from renewable sources
To discover all the measures announced for the Public Sector as well as key performance indicators, download our full Budget Brief.
Click here
Manufacturing and SMEs
A continuation of existing measures with a push for a greener sector.
Most of the key incentives provided in Covid-19 have been extended at the request of the key players (e.g. freight rebate scheme). This will be welcome and provide continued support to a sector in solid growth.
A real effort in pushing the decarbonisation of the sector which should increase its attractiveness to international merchants who are increasingly favouring sustainability centric players.
The lack of skilled resources has been a challenge for some years and has accentuated itself recently. The lowering of the threshold to Rs30,000 per month for migrant workers and streamlining of occupational permits will help but perhaps not where it is most needed?
SMEs have been hit with an increase in the minimum wage. This will force some to reinvent themselves (e.g. bringing Artificial Intelligence (AI) in). For a sector which represents the backbone of the country’s GDP, there could have been bolder measures to provide real impetus to our economy.
Key Manufacturing and SMEs measures announced in National Budget 2023 - 2024
Decarbonisation and promotion of renewable energy
50% waiver on the increase in electricity prices for next 2 years
Extension of existing schemes
Increase in minimum wage to Rs15,000
To discover all the measures announced for the Manufacturing & SMEs, download our full Budget Brief.
Click here
Information & Communications Technology (ICT)
Measures are not game changing…
This year’s budget could have allocated more importance to this sector and the digitisation of the public services to the citizens.
The ICT/BPO sector suffers from a shortage of talents indeed. Whilst measures announced are related to tax incentives, we, at PwC would have expected a more visionary approach through the African partnership. For example, attracting companies which are specialised in Generative Artificial Intelligence (AI) to come and set campus in Mauritius would have been more avant-garde and would have transformed this sector.
In all emerging economies across the globe, we are seeing digital transformation of public services during the post pandemic period, to bring more swift and efficient services to citizens and to attract talents. The measures announced in this year’s budget do not provide enough to address the digitisation of citizen services in other critical sectors, such as business facilitation, social welfare, education and traffic management.
We shall have to wait for the country’s digital revolution…
Key Information and Communication Technology measures announced in National Budget 2023 - 2024
Towards a Digital Government
Promoting the use of digital technologies to better serve citizens
Tech-enabled public Healthcare
Uplifting the delivery of healthcare services through technology
ICT/ BPO industry focus
Partnerships with African counterparts
To discover all the measures announced for the Information and Communications Technology (ICT) sector, download our full Budget Brief.
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Contact us
Anthony Leung Shing, ACA, CTA
EMA Deputy Regional Senior Partner, Country Senior Partner, PwC Mauritius
Tel: +230 404 5071
Olivier Rey, ACA
EMA Clients and Markets Leader, Assurance Partner, PwC Mauritius
Tel: +230 404 5145
John Li How Cheong, ACCA
Partner, Head of Capital Markets and Accounting Advisory Services (CMAAS), PwC Mauritius
Tel: +230 404 5128
