Navigating through COVID-19

As well as being a serious threat to people’s health, the novel coronavirus (2019-nCoV) (COVID-19) presents challenges to people and organisations around the globe, and Mauritius is no exception. COVID-19 has completely changed our economic and social environments and behaviours.

With its significant reliance on external trade, we expect unprecedented negative effects on the Mauritian economy. The hospitality industry is already taking a big hit with the travel restrictions. Investment is expected to go down with an increase in unemployment rate. These negative indicators will cause a contraction in our economy, and it is the measures that we implement now which will determine how successful we handle this COVID-19 crisis.

Many countries are implementing stimulus packages to sustain their economies. Likewise, the Bank of Mauritius has reduced the repo rate by 200 basis points. It has also set a fund to support banks and this is welcomed in the Industry. The Wage Assistance Scheme (WAS) and the Self Employment Assistance Scheme (EAS) will also provide some support to the business community.

Government proposes to replace the existing Quarantine Act with the Quarantine Bill to implement measures intended to better contain the spread of infectious and communicable diseases in light of the COVID-19 experience. 

With the COVID-19 (Miscellaneous Provisions) Bill, the Government seeks to address the difficulties and challenges arising out of the lockdown, notably in relation to employment, insolvency, banking, tax and compliance.The Insolvency Act is being amended to restrict liquidation of companies and appointment of Receivers with a view to safeguarding employment. 

The COVID Bill can be seen as a quick act from the Government to address some of the concerns during this pandemic. However, it would be desirable that the Government comes with some more pragmatic measures to support the business community to navigate through the recession that is looming ahead of us. 

I invite you to read the views of PwC Mauritius and PwC Legal in this document.