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Wednesday September 23 2015 www.ft.com/reports | @ftreports

message he campaigned on as he led his Mouvement Socialiste Militant (MSM) Inside party back to power — as part of L’Alli- anceLepep,atieupwithtwootherpolit- Uncertainty lingers in Nation needs ical parties — after nearly a decade of rule by his rival, Navinchandra Ram- wake of scandals goolam,leaderoftheLabourparty. Government ‘clean-up’ Thepledgestotacklecorruptionwere policy has been generally welcomed. And with gross criticised by some to reignite domestic product growth averaging about 3 per cent in the past nine years, Page 2 there was a palpable sense that a fresh directionwasneeded. Ambitions to become a A report on Mauritius by the World regional entrepôt the engine Bank published in June describes the country as being at a “crossroads”, say- As Europe stagnates ing the government faces “mounting Mauritius looks to Africa socialandeconomicchallengesthatwill Page 3 make it more difficult to achieve high- of growth incomestatusinthemediumterm”. Offshore ambitions InhisAugustspeech,SirAneroodout- lined his government’s plans to target The country is trying to average annual growth of 5.5 per cent raise its profile as a A lacklustre economy and corruption scandals from 2017 and to raise per capita financial centre income, which was about $9,000 in Page 3 dominate the agenda, reports Andrew England 2013,tomorethan$13,500by2018.The plans include revamping manufactur- ing, developing a so-called ocean econ- First Muslim female t was no coincidence that Sir Aner- But as the country of 1.26m looks omy focused on marine activities, ood Jugnauth, Mauritius’s prime aheadtoitsnextstageofdevelopment— expanding the financial services sector head of state minister,chose a conference centre with Sir Anerood targeting a “second andsupporting“smartcities”. Ameenah at CyberCity last month to deliver economic miracle” — a sense of uncer- There is also a push to tap into the Gurib- I the first big economic speech of his taintyhasbeenlingeringfollowinglack- potential of faster growing, less devel- latesttermofoffice. lustregrowthandaspateofscandals. opednationsonmainlandAfrica. Fakim is CyberCity, about 15 minutes drive And Sir Anerood, an 85-year-old Yet within business circles there is a set to from the capital, Port Louis, in many politicalveteranandformerprimemin- perceptionthattheso-called“clean-up” make her ways epitomises the strides the small, ister who took office after leading an and scandals have distracted from eco- Indian Ocean nation has taken as it has opposition alliance to a surprise victory nomicpoliciesanddevelopment. mark evolved into one of Africa’s most devel- in last December’s election, is brutal in Arnaud Lagesse, chief executive of Page 4 oped,stableandwealthynations. hisassessmentofthesituation. GML, one of Mauritius’s biggest con- Clusters of gleaming, high rise office “Onceagain,weinheritedadisastrous glomerates, says: “They need to take blocks, housing local and international legacy. During the past nine years, the action for the economic development, groups, including HSBC, Deutsche Bank countryhadapoorleadershipthatsank there’snothingmuchbeingdelivered.” and Standard Chartered, stand as sym- the economy,” he told the audience of Other business people say there is a Producers aim to find bols of the economy’s diversification politicians, business leaders and diplo- need for a long -term vision and see the from reliance on traditional industries matsinAugust.“Weinheritedacountry “clean-up”aspartlybeingaboutsettling a sweeter future suchassugarandtextiles. where corruption, and fraud politicalscores. As concessionary Indeed, its economic success in the hadbecometheoperatingculture.” The most prominent scandals con- quotas end, companies years after independence from Britain Such comments clearly have a cern the collapse of British American in 1968 earned so much fame that ana- political dimension. But they were in Looking festive in Port Louis: business people say the new government needs Investment — a company that the look for solutions lystsrefertothe“Mauritiusmiracle”. tune with the “nettoyer” or “clean-up” long-term vision to meet its goals — Dreamstime Continuedonpage2 Page 4 2 ★ FINANCIALTIMES Wednesday 23 September 2015 Investing in Mauritius Need for both Uncertainty lingers as investment scandal rocks establishment Now, however, the futures of all three Bérenger says. Mr Boolell counters that Politics are shrouded in uncertainty at a time the allegations against Labour party when Mauritian politics have been rat- officials have been driven by vendettas Critics say a government-led tledbyscandalsandcontroversy. and revenge from within the current and reforms ‘clean-up’ campaign is really At 85, Sir Anerood is expected to bow administration. out of politics when his term ends. His “When he [Sir Anerood] came to about settling political son Pravind — who has taken over as power, he was hell-bent not on running scores, says Andrew England MSM leader — is groomed to be his suc- the country but settling scores,” Mr Economy Infrastructure is inadequate and there cessor.ButtheyoungerJugnauth’spolit- Boolellsays. ical future is in jeopardy, after he was Government officials dismiss sugges- are worries about inequality, writes Andrew Jack While numerous African nations have sentenced to 12 months in prison for a tions of a vendetta against political Hope for the future: CyberCity endured periods of political turbulence conflict of interest relating to a previous opponents, countering that they were in their post-independence years, the tenureasfinanceminister. elected on promises to “clean up” short drive from the tatty tured education system to be at the core development,”saysVishnuLutchmeen- political landscape in Mauritius has He resigned from his current cabinet allegedcorruption. shopfronts and slow- ofchange. araidoo,thefinanceminister. tendedtobeoneofstability. post, but proclaims his innocence and is “The clean-up will continue,” says moving traffic of Vacoas- For much of the period since inde- Ministers have called for an emphasis Indeed, the island nation has stood appealingagainsttheconviction. Nandcoomar Bodha, MSM’s secretary- Phoenix in central Mauri- pendence, Mauritius grew strongly, on creating an “Ocean Economy” out as a beacon of flourishing democ- Mr Ramgoolam’s political future has general and the minister of infrastruc- A tius, Jean-Louis Roule, shifting from sugar cane into textiles focused on marine activities, and large- racy for Africa, as the country’spolitical also been cast in doubt after he was ture. “Everything was dysfunc- headofCIDP,apharmaceuticalandcos- and fish processing, and then into out- scale infrastructure investment includ- parties have peacefully jostled for provisionally charged with offences tional . . . Weneverdreamtthecleaning metic-testing company,sits surrounded sourcingandoffshorefinancialservices. ingaseriesof“SmartCities”. power, and, more often than not, ended including money laundering after wouldgosodeep.” by modern art in a slick first-floor office It avoided the disruptions of many of Yet Mr Lutchmeenaraidoo concedes up divvying up cabinet posts among police raided his home and seized large Yet even he was surprised by the that would not look out of place in the its African peers. Instead there was that meeting election pledges and fund- themselves, as a series of alliances have sumsofmoney. MSM-led alliance’s victory at Decem- high-tech centres of San Francisco or politicalstability,relativeharmonywith ing ambitious new projects will require formedgovernments. He has denied the allegations, and ber’selection,giventhatitwastakingon Boston. the private sector, and an unusually increasedtaxrevenues. Yetasenseofpoliticaluncertaintyhas claimed that the money was legitimate a rival alliance containing two of the In a neighbouring unit occupied by strong social services system offering Physical infrastructure has lagged been rippling across the country, nine fundingforhisparty. three largest parties — the Labour party Quantilab, dozens of sophisticated pensions,freeeducationandhealth. behind growth. The M2 motorway that months after an opposition alliance, Several of Mr Ramgoolam’s former andtheMMM. machines are silently at work, support- The ethnic mix — with a legacy of connects BioPark to Port Louis is fre- L’Alliance Lepep, defied the odds and ministers have also been questioned, as Inpart,thevictoryisexplainedbythe ing the company’s growing interna- FrenchaswellasBritishrule,andIndian quently clogged with traffic, slowed securedvictoryatDecemberpolls. the new government presses on with its fact that the electorate had grown tired tional reputation as a centre for anti- and European settlers alongside Afri- downbytrafficlightsandroundabouts. “We have had periods of uncertainty “clean-up”campaign. of nine years of Labour-led government doping controls and food and drug cans and Chinese — has given the coun- It passes CyberCity, a cluster of mod- before, but suddenly we have fragility “Never in the years since my child- andwantedchange. safetytesting. tryastronginternationaloutlook.Many ern skyscrapers, which is impressive everywhere,” says a Mauritian com- hoodhasMauritiusgonethroughsucha But politicians and analysts say there Such companies in Mauritius’s Bio- oftherelativelyhighlyskilledworkforce from afar. But at the foot of the build- mentator. wildcat, political turbulence,” says are also signs the traditional role of eth- park offer glimpses of a prosperous and arebilingualinEnglishandFrench. ings, employees, who have travelled far Inlargepart,theuncertaintyislinked Arvin Boolell, a senior official in the nicity and religion in determining peo- more diversified future. But they from home, struggle to find parking to the fortunes of three ageing political Labour party and a former foreign min- ple’s voting behaviour could be dimin- remain exceptions at a time when eco- spaces and walk on roads with no pave- heavyweights: Sir , ister. ishing. nomic growth has slowed and analysts mentstobuytheirlunchfromhawkers. theprimeministerandfounderofMou- Mr Bérenger’s MMM party, mean- “Peoplearemoreidealistic,theywant arewarningofbarriersthatmayimpede ‘Without social peace “The road network is now handicap- vementSocialisteMilitant(MSM),Nav- while, has split into three because of his to see things happening, there’s a sense renewedexpansion. there is no long-term ping the economy and discouraging inchandraRamgoolam,theleaderofthe decision to team up with the Labour ofurgency,”MrBodhasays. GilbertGnany,chiefstrategyofficerat people from investing,” says Gaetan Labour party and the man he replaced, party and to back Mr Ram- But the uncertainty is likely to Mauritius Commercial Bank, forecasts development’ Siew, an architect who is helping co-or- and Paul Bérenger, leader of the Move- goolam’s plans ahead of the linger until it there is some clar- thatGDPwillexpandby3.8percentthis dinate the government’s Smart Cities mentMilitantMauricien(MMM). elections to amend the consti- ity about how and when the year, against an official target of 5.7 per But today,the advantages of past dec- programme. The trio have dominated the political tution to give the traditionally next generation of leaders will cent for 2015-16. He cautions that the adesarewaning.Oneformersenioroffi- Human capital will be just as impor- landscape since the nation’s founding ceremonial presidency more emergeaftertheyearsofdomi- country will need to substantially boost cial says: “There are two big myths in tant for future plans. A litmus test for leader, Sir Seewoosagur Ramgoolam powers. nance by the prime minister private sector investment to meet such Mauritius: free education and free the new administration will be its atti- took the helm after independence in That was interpreted by andMrRamgoolam. ambitious targets. So far, industry health.” He and others caution that tude to immigration. It would aid many 1968.Heserved until1982. many as Mr Bérenger and Mr remainscautious. underfunded state provision and ineffi- in the offshore and financial services The latter’s son, Navinchandra, Ramgoolam pursuing their Navinchandra Some analysts point to structural fac- cient subsidies have resulted in an out- sectorifforeignerscouldgainresidency, served as prime minister between 1995 ownpoweragendas. Ramgoolam tors. Since 2010, the World Bank datedsystem. employment and the right own land and 2000, and again from 2005 to 2014, “We got a lot of warned in a report this year, growth in That helps explain the social focus of moreeasily. while Sir Anerood held the post from collateral dam- Mauritius has slowed while inequality the new government which came to In a small island economy, modest 1982 to 1995 and 2000 to 2003. Mr age, we lost has increased. The report described power in December pledging a sharp policy changes could provide a large Bérenger enjoyed a brief spell in the top because of him growth as “disappointing” for the bot- rise in pensions. “We believe that with- boost—orasubstantialsetback—inthe office from 2003-2005, in an alliance [ M r R a m - tom 40 per cent. It called for a restruc- out social peace there is no long-term yearsahead. withSirAnerood’sMSMparty. goolam],” Mr Nation needs to reignite the engine of growth

Continuedfrompage1 political groupings are gripped by island has carved out a reputation as a government alleges was involved in a uncertainty. tax-friendly environment with income multimilliondollarPonzischeme—and In his Cyber City speech, Sir Anerood andcorporatetaxsetat15percent. the arrest this year of Mr Ramgoolam, appealed for patience. But the business But there are hurdles it will need to the former prime minister, on provi- sector is desperate to see action in overcome. An often repeated complaint sional charges that include money laun- improving education and skills, while is the poor state of Mauritius’s air con- deringandconspiracy. also opening up the country to attract nectivitytoAfrica. In the case of the former, the govern- highcalibreforeigntalent. SirAneroodsaidhewastakinga“per- ment revoked the licence of BAI’s sub- “They need to build more scale and sonalinterest”inlookingatthepossibil- sidiary, Bramer Bank, and put it in the that means opening the doors a bit,” ityofsettinguparegionalairlinetocon- hands of state-owned National Com- says Anthony Withers, chief executive nect to Africa. He also noted, that while mercial Bank. It has also paid out bil- ofMauritiusCommercialBank. about 30,000 ships pass Mauritius lions of rupees to refund retail insur- Mauritiushasmanyadvantages.Both annually,justonein10callatPortLouis. ancepolicyholdersandinvestors. English, the official language, and Rama Sithanen, a former finance Mr Ramgoolam, meanwhile, is the French are widely spoken, and the minister and director of International highest profile of a number of former Financial Services, a private group, says government officials who have been the challenge is that the traditional questioned as part of an investigation sourcesofgrowthhavebeenexhausted. intocorruptionandmismanagement. He asks: “How do you reignite the Separately, , the engines of growth and how do you draw prime minister’s son and leader of the thelessonsofwhathappenedinthepast MSM party, resigned his cabinet post and ensure the growth is inclusive and after a court found him guilty of a the prosperity is shared? And can you conflict of interest when he was makeitdurable?” finance minister in a previous AndMauritius’spastsuccessescannot government. be used an indicator of future prosper- Mr Ramgoolam insists he is innocent ity. “The world has changed,” Mr Sith- of any wrongdoing, while Pravind Jug- anen says. “This is a big challenge for nauth is appealing against his convic- many people, who don’t realise the tion. But the result is that the two main gamehaschanged.” Wednesday 23 September 2015 ★ FINANCIALTIMES 3 Investing in Mauritius Country vies Sector refocuses on its own continent with larger US and European investment in India. Financial Services Ben Lim, head of Intercontinental Trust, a financial services company, Appointment of a financial recalls rapidly shifting one India- services minister underlines focused fund to Mauritius from a domi- neighbours to cile in Netherlands Antilles in order to a fresh commitment to trimcostsandimprovereturns. attract overseas investment “Mauritius offered a favourable tax companies, says Andrew Jack regime,noexchangecontrols,nocapital gains tax and no hefty stamp duty,” he be an entrepôt says. When Delta, a South Africa-based Today, India still represents the bulk property investment fund, decided to of the offshore financial sector by vol- switch the offshore domicile of its inter- ume, says Mr Sithanen, who now runs Trade As demand stagnates in Europe, Mauritius national operations from Bermuda to InternationalFinancialServices,aman- Mauritius a year ago, it gained unex- agementcompany. wants more links with Africa, says Andrew England pectedbenefits. Yet, like Mr Lim, Mr Sithanen says “We’vebeenverypleased,”saysBron- there has been growing interest in wyn Corbett, head of Delta, as she investment funds linked to Africa, such s Mauritius developed into will be sea connectivity and air connec- reflectsonthesuccessoftheoperation. asDelta. one of Africa’s wealthiest tivity.” She points to the depth of domestic Robin Mardemootoo, a lawyer and advanced nations, the One vision is for Chinese entities — investment capacity, citing 35 groups specialising in financial services in Port islandnation’sfocustended which have rapidly expanded across who attended its recent results presen- Louis, says an additional attraction is A to be far beyond the shores Africa over the past decade — to use tationinPortLouis.“Mauritiushasbeen the country’s strong legal system, a ofitshomecontinent. Mauritiusasasteppingstonetothecon- a lot more advantageous than we origi- legacyfromtheBritishcolonialperiod. With sugar, textiles and financial tinent. nallythought,”shesays. There are some problems — the services the mainstays of its economy, The two countries recently signed an Over the past two decades, the coun- the country’s traditional trading part- agreement that will allow for 56 flights a try’srole as a financial centre has grown ners have been Europe, India and the week between the Asian behemoth and significantlyonthebackofdeeplinksto Bronwyn Corbett: ‘Mauritius has US. In terms of Mauritian exports only theislandnation,MrDuvalsays. India. But Delta has been part of a been a lot more two African nations — South Africa and “That was at the insistence of the Chi- second, Africa-focused wave on which advantageous than Madagascar — registered in its top 10 nese.Theywantedtodoit,becausethey Mauritiusiskeentocapitalise. we originally partners last year. For imports, only see Mauritius as a safe, secure, port or Growth: some are taking their sugar expertise to the mainland — Tim Cocks/Reuters In a sign of its commitment to the thought’ South Africa makes a showing in the haven for Chinese operations,” he says. financial services sector, the new gov- top10. “Butitdependsonconnectivity.” to mainland Africa is poor, with flights know-how, and Africa is probably the ernment has appointed a minister for governmenthasbeencriticisedbysome But a combination of factors has Other officials talk of using tax incen- restrictedtoSouthAfricaandKenya. only continent where we are able to financialservices,SudarshanBhadain. for its handling of Bramer Banking Cor- shifted the mindset of both public and tives to attract African and interna- Mauritius will also be competing with bringsomevalue.” Thingshavecomealongwaysincethe poration, a subsidiary of British Ameri- privatesectorsinrecentyearsandtoday tionalgroupstosetupbases. others, including South Africa, Kenya Arnaud Lagesse, the chief executive 1990s, when Rama Sithanen, finance can Investment (BAI). Bramer was sus- all the talk is of Africa being a driving “The whole world is going to go to the and Nigeria, in its quest to be a regional of GML, a large conglomerate, says: “I minister, at the time, diversified into pected of being involved in a Ponzi force behind the nation’s next stage of African continent in the next 10 to 20 hub. think Mauritius has understood the offshore services at a time when “sugar scheme. The government launched an development. As Europe’s economies years—thisiswhereit’sallgoingtohap- Whilethegovernmenttriestoachieve opportunityofAfrica,”hesays. wasbecomingsour,notsweet”. investigation, revoked its licence and have seen slow progress and Mauritius’s pen,” says Sudarshan Bhadain, the its aims, private sector groups are mak- GML, which has interests including He says: “We created the ecosystem hastakenoveritsactivities. traditional industries have slowed, financialservicesminister. ing some headway. The government sugar, finance, industry, construction for global business, a regulatory, legal “We had no choice,” says Vishnu Africa has produced some of the world’s The Mauritian government has says more than 80 have already andbeverages,alreadyhasasugaroper- and incentive framework for people to Lutchmeenaraidoo, the finance minis- fastesteconomicgrowthrates. already signed initial agreements with investedacrossthecontinent. ation in Tanzania and Kenya and a sea- investviaMauritius.” ter. “We faced an earthquake and we Mauritian officials want to transform Ghana, Senegal and Madagascar to Terra Mauricia is a prime example foodjointventureinGabon. India was opening up its economy, hadtoreassureinvestors.” the island’ssleepy port into a key trans- establish investment zones in those withasugarbusinessinIvoryCoast,and Mr Lagesse believes Mauritius is not and the two countries — with long But the government’s stance on tax shipment and bunkering point for countriesinanattempttosupportMau- a venture with Kenyan partners to pro- tappingintothefullpotentialofAfrica. historical connections — signed a treaty havens shows the clearest indication of Africa and see it become a centre for ritian companies wanting to build an vide sanitation services across east “We are missing some opportunities. that offered mutual investment protec- how it wishes to position itself for the financial institutions and companies Africanpresence. Africa. It is also looking to set up sugar This African growth could probably tionandsubstantialtaxbenefits. future. operatingonthecontinent. Yet there is an acknowledgment that projects in Ghana and a bottling plant give us another 0.5 to 1 per cent of GDP But if New Delhi thought the arrange- Mr Lutchmeenaraidoo stresses: “The future has to cater for the con- much needs to be done if Mauritius is to anddistributionnetworkinUganda. growth,” Mr Lagesse says. “And 0.5-1 ment would primarily help Indian “Mauritius is no longer and will no nectivity and the link between Africa achieve its aims. Mauritians have the CyrilMayer,managingdirectatTerra, per cent GDP growth is huge for us; it’s companies expand abroad, Port Louis longer be a destination for shell compa- and Asia,” says Xavier-Luc Duval, the advantage of speaking both French and says: “Mauritius is a small market, huge in terms of employment and offered a framework for what would nies. It will become a legitimate, trans- deputy prime minister. “The future English,butthenation’sairconnectivity and, relative to Africa, we have good spending.” prove to be a far bigger attraction: parentinternationalfinancialcentre.” 4 ★ FINANCIALTIMES Wednesday 23 September 2015 Investing in Mauritius Calls to boost tourism sector Producers aim to find a sweeter future Leisure industry Visitor numbers are up, In two years’ time, a final concessionary Sugar set of sugar import quotas into the EU but the Maldives and willcometoanend. Sri Lanka have more, Diversification is vital, as Patrick de Labauve d’Arifat, head of prices continue to fall and Alteo, one of the largest producers and writes Andrew England refiners, says his group has overseen an costs rise, says Andrew Jack expansion of sugar cane cultivation in t the plush Lux resort Tanzania and Kenya — and is aiming to on Mauritius’s eastern A hand-painted mural stretches across increase sales across the continent. But coast, some holidaymakers an entire wall of the boardroom of the he says prices are depressed and will cool off in the large Mauritius Sugarcane Industry Research remain so, and Alteo has had to diver- A pool, while others are Institute, with a red line rising steadily sify to survive, expanding into sectors enjoying lunch at a beachside restau- from left to right towards the ceiling to including tourism, property develop- rant looking over pristine white sand show expanding production over more mentandenergy. and the calm, turquoise waters of the than 150 years. Then it comes to a sud- That approach is shared on a more IndianOcean. denstopintheearly1970s. modest scale by some smaller produc- It is the tourist low season, as Mauri- For much of its colonial existence, erswithfewerresources,suchasPatrick tius goes through its cooler winter successively under Dutch, French and Guimbeau managing director of St months, but the sun is shining and the Britishruleovermorethanthreecentu- Aubin. climatewarm. ries, Mauritius relied heavily on sugar. “We have been raised on sugar,” he Such images typify how Mauritius is Within three decades of independence, says.“Butit’sdifficult.Pricesarefalling, seen by many in the outside world — a it has come under ever greater pressure labour and energy costs are rising, and paradise Indian Ocean island and todiversifyasoutputandrevenueshave it’snot profitable. The only way for us is upmarket tourist destination. Despite it Vision of paradise: the island has been successful as a high-end destination, but critics say more must be done — Dreamstime declinedsharply. highvalueadded.” being low season, the hotel is enjoying “It’s a tense moment,” says Salem His family estate still produces sugar occupancy rates of more than 80 per 2015 was up 8.9 per cent compared people the time and confidence to rein- game instead of the value game,” Mr Saumtully, director of the Institute. for sale to refiners, but has increasingly cent. Rooms with an ocean view are with the same period in 2014. But fig- vestintheirproduct”. Veerasamy says, adding that he thinks Once a global centre of research that focused on rum and vinegar, as well as goingfor€500anight. ures for 2013 compiled by the UNWTO “Let’s increase demand so that it gets Mauritius needs to continue attracting introduced new cultivation techniques trying to find ways to can sugar cane The mix of visitors at the hotel, one of show Mauritius’s total arrivals backtoequilibrium,”MrDuvalsays. the high spending tourist and keep its and dozens of varieties of more produc- juice, which is highly perishable. His five Lux establishments on the island, is of 993,000 were behind those of But a bone of contention is air access offeringasexclusiveaspossible. tive and disease-resistant sugar cane, business has opened its estates to tour- illustrative of the shifting dynamics of the Maldives (1.1m) and Sri Lanka to the island. There have been accusa- “We have to differentiate ourselves,” the institute has had to cut back and ists, built a restaurant, a shop, guest the industry — appealing to the tradi- (1.3m). tions that the government is limiting Mr Veerasamy says. “It’s still a top class seek foreign funding, as support from accommodation and a golf course. It tionalEuropeantourist,butalsothefast MrJonessaysMauritius’scompetitors flights provided by foreign airlines destination, but we have to get our act domesticproducershasdeclined. emergingChinesemarket. have done more to expand air access because it is seeking to protect the com- together.” According to data gathered by the YetLux’schiefexecutive,PaulJones,a and run effective television promo- mercial interests of Air Mauritius, the Where there is agreement, is on the Institute and the World Bank, in 1973, 87,000 53,000 veteran of the island’stourism sec tor,is tionalcampaigns state-owned carrier. The government industry’sneed to adapt to the changing sugar cane cultivation in Mauritius Hectares under Hectares under far from satisfied. He thinks the indus- “Wewere always advocating selective recently turned down an Emirates air- dynamics in global tourism and reach peaked at 87,000 hectares, when the sugar cultivation sugar cultivation try is functioning below potential, as it [top end] tourism,” he says, but adds: linerequestforathirddailyflight. outtothefastgrowingChinesemarket. country’s farmers were producing in 1973 today competes with fellow Indian Ocean “There has in the past been a certain Mr Duval, however, says there is “lots Last year, overall tourist arrivals in 713,000 tonnes a year, contributing destinations such as the Seychelles and amountofcomplacency.” of room” in Mauritius’s bilateral air Mauritius grew by 4.6 per cent accord- more than a fifth of GDP and employing theMaldives. Hisisnotalonevoice,andXavier-Luc agreements that is being unused by the ing to government figures. But tourists more than 20,000 families. Today, alsopackagesarangeofspecialityteas. “Goback25yearsandwewereleaders Duval, the deputy prime minister and foreign airlines, and puts the onus back from Asia increased by 19.5 per cent to 53,000hectaresareundercultivationto Now there are efforts to increase the in the Indian Ocean. We were beating tourism minister, is spearheading a onthehotelgroups. 158,361, more than a third of whom grow less than 500,000 tonnes with share of locally refined sugar, including everybody, including Sri Lanka, the strategy to boost the sector. This “Whatwearesayingtothehoteliersis were Chinese visitors, up by 51 per cent fewerthan8,000directworkers. some types exclusively produced in Seychelles, the Maldives and Réunion,” includes making Mauritius easier to look at your own product . . . make it to63,365. The 260 processing plants of the mid Mauritius. hesays. get to and revitalising its marketing attractive in winter, in summer,” Mr MrJonessaysthatwhileEurope—the 19th century have been reduced to four There is discussion of a “Mauritius “Today, we are number three,” he strategy. Duval says. “Provide people with a traditional market for Mauritius’s tour- today. Sugar now accounts for less than sugar” brand — or possible sub-brands. adds, after the island fell behind “Mauritiusstillhasatremendousrep- sense of place, encourage people to do ism — will always be important, China 3percentofGDPandbelow2.4percent But that will require more investment, Sri Lanka and the Maldives in terms of utation and tremendous potential,” Mr activities.” “hasmassivepotential”. of exports, down nearly threefold since and a possible shift away from the uni- total tourist arrivals and annualised Duval says. “But . . . you’ve got to get Nirvan Veerasamy, co-founder and At the Lux hotel in Belle Mare in the thestartofthemillenniumalone. fiedSugarSyndicatethatcurrentlybuys growth. the basics right and maybe that was managing director of Yu Lounge, a pri- island’seast,Mandarinhasalreadybeen A sharp blow came with the ending in alllocalproduction. Mauritius did pass the psychological what was not being sufficiently stressed vately run VIP lounge service at Mauri- added alongside French and English on 2009 of a system of preferential pur- “This is a very structured, conserva- barrier of attracting 1m visitors for previously.” tius’s international airport, says both signs. It also has a Chinese chef and chase agreements with the European tive industry,” says Mr Saumtully. the first time last year, according Headdsthatthegovernmentdoesnot the public and private sectors need to Chinese-styleteahouse. Union, which had offered Mauritius “There are deregulation concerns to government figures, and the number want any new hotels to open in the worktogethertobolsterthesector. Mr Jones predicts Mauritius will be favourable terms within Europe at sub- among the small growers. We have to of tourist arrivals in the first half of nexttwoyears,because“wewanttogive “We have been fighting the prices attracting1.5mvisitorsby2020. stantiallyabovetheworldmarketprice. rethinkourmarketingstrategies.” Ameenah Gurib-Fakim set to make her mark as president

shesays.“Idon’tseemyselfrunningfor andcreatingopportunitiesfor“late Profile aministerialpostinthefuture.Alotcan learners”.Shewantstobuilda beachievedthroughthepresidency. knowledgehubandbringin“thebig Andrew Jack meets the Thereisplentyofspacetodothings.” players”,reinforcingscienceand world’s first Muslim MsGurib-Fakimtrainedasachemist, technologyforgraduates. workedasanacademicandroseto “Cohesionthrougheducationisvery female head of state becomeprovice-chancellorofthe important,”shesays. UniversityofMauritius.Thenshequit Shehasalreadyoverhauledthe tojoinafledglingbiotechbusiness presidentialwebsite,andshakenthe AmeenahGurib-Fakimhadbuilta seekingtoidentifycosmeticand dustofftheinstitutionbybeginningto successfulcareerinscienceand pharmaceuticalapplicationsofnatural addressMauritiansdirectlyand businesswhenanunexpectedcalllast ingredientsderivedfromthecountry’s informallythroughsocialmedia. yearheraldedthestartofanunusual flora. Inanodtoheracademicbackground, newtwistinherlife.Withinmonths,she Inhernewrole,shecitesscience,her shehasdraftedplansfornextyearthat hadbecomeMauritius’sfirstelected modestvillageoriginsandherfaithina beginwithherofficialresidence.She womanpresident—andtheworld’sfirst minorityreligionasherinfluences.She hasdecidedtocontinuelivinginher femaleMuslimheadofstate. stressesthepivotalneedforequal ownhome,buthasresolvedthatthe “IhadjustgivenaTedtalk,whena opportunitiesandeducationtohelp parkatRéduitwherethepresidential journalistrangandsaidIwasonalistto bringtogetherasocietythatremains palaceissituated,willbecome“the becomepresident,”sherecalls. stratifiediflargelypeaceful. gardenoftherepublic”. Atthetime,theprospectsofanew “WeareadiversepeopleinMauritius, Sheplanstoopenupthehouseitself governmentseemedremote,a“David andwehavemanagedtolivetogether,” asashowcaseforlocalpeopleand versusGoliath”struggle,assheputsit. shesays. touristsalike.Shestressesitshistorical Sheherselfhadnopoliticalambitionsor Shearguesforrenewedemphasison importance.LeChâteaudeRéduitwas desiretocampaign,butagreedtobe education,includingvocationaltraining builtin1749andcontainsimportant considered. artefactsincludingthetableonwhich Evenaftertheunexpectedvictoryof theFrenchsignedoverMauritiusto herAllianceLepepparty—which Britishcolonialruleintheearly19th combinesthreepoliticalgroups—in century. December,theincumbentpresident Tourism,includingeco-tourism,is RajkeswarPurryaginitiallyrefusedto amongherpriorities.Soare quit.Onlyafterhisbelatedresignation entrepreneurshipandgreater wasshepropelledintothepostinJune. diversification. MsGurib-Fakimsays:“Peoplewere “Youhavetoproducemorepillarsof fedupwiththewaypoliticswasrun,and theeconomy,”shesays.“Regionally,we wantedchange.Before,theyvotedby haveaverybigcardtoplay.Weneedto casteandreligion.Forthefirsttime, lookathowwepromoteinter-African theyvotedinsteadforapartyandits trade.” ideas.” Theavailabilityofresourcesandthe Whilestressingthatherroleis complexitiesofpoliticsmaylimither “non-executive” —thepositionis ownroomformanoeuvre.Buther largelyaceremonialone —shesees agendaisclearforMauritius:“We amplescopeforinfluence.“This havetoopenup.Wealwaysneedto institutionhastobeabovepolitics,” getfreshblood,”shesays. “Theadvantagewehaveisthat Ameenah Gurib-Fakim: grand wearesmall.Andasmallamount plans for her country ofmoneycanmakeadifference.”

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Andrew England Andy Mears All editorial content in this report is Southern Africa bureau chief Picture editor produced by the FT. Our advertisers have no influence over or prior sight of the Andrew Jack For advertising details, contact: articles. Editor of FirstFT Mark Carwardine, +44 (0) 207 873 4880r and [email protected], or Larry All FT Reports are available at: Emma Boyde and Peter Chapman Kenney, +44 (0) 207 873 4835 and ft.com/reports Commissioning editors [email protected], or your usual FT representative. Follow us on Twitter: @ftreports Steven Bird Designer