International relations: Boosting cooperation for growth

Regional and international cooperation is a strong element in the development of Mauritius. On one side, the Indian Ocean area is becoming a strategic global zone with Mauritius playing a pivotal role. On the other side, Mauritius is pursuing its fight for sovereignty over the Chagos islands and Tromelin, while rumours often break out over the future of Agaléga Island. Do these explain the setting up of a Ministry of Defence?

Regional cooperation and international relations have always been very high on every government’s agenda. Right since obtaining independence in 1968, Mauritius has always had a policy of friend of all and enemy of none and the country plays a major role in regional blocs such as SADC, COMESA and IOC. The ‘Africa Strategy’ is now a vibrant component of economic policy and has been further invigorated by the establishment of an Africa-Mauritius-Singapore-Asia air corridor. Mauritius fyrther aims to develop Special Economic Zones in the region, namely in Senegal, Ghana and Madagascar.

Mauritius and Kenya recently set up a joint committee to further boost relations between the two countries. As part of its policy of opening up towards Africa, Mauritius has identified Kenya as a strategic partner to further penetrate the continent. The first edition of the joint committee will be held in Nairobi in March 2017. It will focus on new avenues of cooperation such as trade, investment, air access, maritime connection, the blue economy, transfer of technology, among others. The development of small and medium enterprises is also on the agenda. Nairobi aims to become an aviation hub connecting Mauritius and Africa. On his part, the President of Kenya has promised to support Mauritius’ application to join the East African Community (EAC). Mauritius wants to become a member of this economic bloc.

Ghana

Mauritius plans to develop a Special Economic Zone in Ghana, in the region of Dawa, not far from the capital Accra. Mauritius will seek the collaboration of other partners like Senegal and Ivory Coast for this project. As relations with Ghana are strengthening, Mauritius has invited the President of Ghana as Chief Guest to the national celebrations on 12 March 2017. Ghana wants to draw inspiration from our experience in the financial services, the ICT/BPO and the manufacturing sectors. Mauritius is also keen to share its knowledge on the production of sugar and other sectors with Ghana. 

India-Mauritius

Mauritius wants to further intensify economic relations with India this year. In early January, India has remitted to Mauritius a new cartography with updated marine data covering the north of the island. The new cartography is a reactualisation of a 150-year old map. The country can henceforth pursue its development strategy in the emerging ocean economy by using more accurate and reliable data, obtained through precise scientific means. This will benefit maritime transport and tourism. Mauritius and India are also negotiating a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) which has a bearing on preferential trade, investment, exchange of services and economic cooperation. It must be noted that India has also announced new conditions for eligibility to the status of Overseas Citizen of India (OCI) for Mauritian nationals of Indian origin. 

Kuwait Fund

Mauritius wishes for a larger engagement of the Kuwait Fund towards the development of infrastructure and public services in the island, namely for water distribution network. Mauritius has also invited the Kuwait Fund to use the island’s financial services sector as a conduit for its global funds movement. 

The Malagasy connection

Mauritius enjoys special economic relations with the Malagasy Republic. This year will see a strengthening of bilateral relations between the two neighbours. The joint committee will further unfold new avenues for cooperation and regional integration. Mauritius is currently working on the setting up of a Special Economic Zone in the south east of Madagascar, at Fort Dauphin. 

Turkey 

Mauritius and Turkey are engaged in a process of further raising the level of economic and trade relations. The first joint committee set up in the context of a Free trade Agreement (FTA) was held last November to give a new impetus to the FTA signed in 2013. Mauritius and Turkey have also signed a Framework Agreement on Trade and Economic Cooperation and an Investment Promotion and Protection Agreement (IPPA). Turkish Airlines has been given special permission to serve Mauritius and this is regarded as a major initiative to bring both countries together. The FTA also allows Mauritian exporters to sell their products in Turkish markets and use Turkey as a hub to penetrate European and Asian markets, given Turkey’s strategic location between Asia and Europe. Turkey can also use Mauritius as a hub to penetrate countries members of SADC and COMESA. 

Pakistan 

Despite excellent political and cultural relations between Mauritius and Pakistan, the level of economic cooperation is at an astonishing low. A Preferential Trade Agreement was signed in 2007, but this has not seen a rise in trade exchange between the two friendly countries. In that context, a committee has been set up at the level of the ministry of foreign affairs to look into the obstacles hindering trade and economic exchanges between Pakistan and Mauritius and to recommend solutions. 

Réunion 

Bilateral relation with Reunion Island has known new bounds during the past couple of years. In addition, projects submitted by Mauritius under the INTERREG programme, which operated under the European Fund for Regional Development (FEDER), have been considered. It was in October 2016 that Mauritius signed an agreement with Reunion Island for the realisation of projects. The country is drawing inspiration from Reunion Island’s successful achievements in agriculture, renewable energy, technical training of labour resources, among others. Regarding training of manpower, it must be noted that the Mauritius Institute of Training and Development is collaborating with the ‘Chambre des Métiers et de l’Artisanat de La Réunion’ in various fields, namely, automotive, agriculture, air conditioning and refrigeration, construction, jewellery, woodworking and well being. 

China and the blue economy

China is fully committed to assist Mauritius in its growth strategy. The development of the ocean economy is high on the cards and this sector is of interest to the Chinese authorities. The various components of the Ocean Economy namely maritime hub and the opportunities in Africa are attracting Chinese investors. The setting up of the Bank of China in Mauritius is seen as a stepping stone for other Chinese players in the banking and financial services to consider Mauritius in their global expansion plan. 

Bangladesh

Many avenues of cooperation exist between Bangladesh and Mauritius. Bangladesh is mainly known for the supply of skilled labour to our textile and construction sectors. At present, there are nearly 21,000 Bangladeshi workers in Mauritius, with the bulk, about 21,000, engaged in the textile sector while the construction sector employs some 2,200. Mauritian textile companies have also set up branches in Bangladesh, namely the Compagnie Mauricienne de Textile (CMT).