Republic of Mauritius MINISTRY OF SOCIAL SECURITY, NATIONAL SOLIDARITY, AND ENVIRONMENT AND SUSTAINABLE DEVELOPMENT COUNTRY IMPLEMENTATION PLAN SWITCH AFRICA GREEN October 2016 1 TABLE OF CONTENTS ACKNOWLEDGEMENTS ....................................................................................................................................... 3 ACRONYMS ............................................................................................................................................................... 4 EXECUTIVE SUMMARY ........................................................................................................................................ 5 1.0. INTRODUCTION AND BACKGROUND ........................................................................................................ 7 2.0 METHODOLOGY AND DATA ACQUIRED ................................................................................................... 9 STEP 1: DATA AND KNOWLEDGE ACQUISITION .......................................................................................................... 9 STEP 2: ANALYSIS OF GAPS AND WEAKNESSES IN POLICY, LEGAL AND REGULATORY FRAMEWORKS; BUSINESS ENVIRONMENT AND INCENTIVE FRAMEWORKS FOR SWITCHING TO GREEN ................................................ 9 STEP 3: POLICY RECOMMENDATIONS AND COUNTRY IMPLEMENTATION PLAN ....................................................... 10 3.0 THE MAURITIAN SCENARIO ....................................................................................................................... 11 3.1. MAURITIUS SUSTAINABLE DEVELOPMENT FRAMEWORK ................................................................................ 11 3.2. GREEN JOBS MAURITIUS ................................................................................................................................. 11 3.3. GREEN ECONOMY MAURITIUS ........................................................................................................................ 11 3.4. GREEN ECONOMY FISCAL POLICY SCOPING STUDY MAURITIUS ..................................................................... 12 4.0. AGRICULTURE SECTOR ANALYSIS ......................................................................................................... 13 4.1. STRUCTURE OF THE AGRICULTURAL SECTOR .................................................................................................. 13 4.2. REVIEW OF POLICIES, REGULATIONS STANDARDS AND INSTRUMENTS FOR PROMOTING GREEN ECONOMY ..... 17 4.3. ASSESSMENT OF THE BUSINESS ENVIRONMENT – INVESTMENT CLIMATE AND TAX INCENTIVE ...................... 18 4.4. CHALLENGES AND OPPORTUNITIES: AGRICULTURAL SECTOR......................................................................... 18 4.5. CAPACITY BUILDING NEEDS: AGRICULTURAL SECTOR .................................................................................... 23 4.6. CONCLUSION AND WAY FORWARD: SUSTAINABLE AGRICULTURAL SECTOR ................................................... 23 4.7. RECOMMENDATIONS AND COUNTRY PROJECTS ................................................................................................ 24 5.0. MANUFACTURING SECTOR ANALYSIS.................................................................................................. 28 5.1. STRUCTURE OF THE MANUFACTURING SECTOR................................................................................................ 28 5.2. REVIEW OF POLICIES, REGULATIONS STANDARDS AND INSTRUMENTS FOR PROMOTING GREEN ECONOMY ..... 30 5.3. ASSESSMENT OF THE BUSINESS ENVIRONMENT – INVESTMENT CLIMATE AND TAX INCENTIVE ...................... 31 5.4. CHALLENGES AND OPPORTUNITIES: MANUFACTURING SECTOR ....................................................................... 33 5.5. CAPACITY BUILDING NEEDS: MANUFACTURING SECTOR ................................................................................. 35 5.6. CONCLUSION AND WAY FORWARD: MANUFACTURING SECTOR ....................................................................... 35 5.7. RECOMMENDATIONS AND COUNTRY PROJECTS ............................................................................................... 36 6.0. TOURISM SECTOR ANALYSIS .................................................................................................................... 41 6.1. STRUCTURE OF THE TOURISM SECTOR .............................................................................................................. 41 6.2. REVIEW OF POLICIES, REGULATIONS STANDARDS AND INSTRUMENTS FOR PROMOTING GREEN ECONOMY ..... 42 6.3. ASSESSMENT OF THE BUSINESS ENVIRONMENT – INVESTMENT CLIMATE AND TAX INCENTIVE ...................... 43 6.4. CHALLENGES AND OPPORTUNITIES: TOURISM SECTOR .................................................................................... 44 6.5. CAPACITY BUILDING NEEDS: TOURISM SECTOR ............................................................................................... 45 6.6. CONCLUSION AND WAY WARD...........................................................................................................45 6.7. RECOMMENDATIONS AND COUNTRY PROJECTS ............................................................................................... 46 7.0. CROSS CUTTING ISSUES .............................................................................................................................. 48 7.1. ENERGY AND ENERGY EFFICIENCY AS A CROSS CUTTING ISSUE ....................................................................... 48 7.2. ECO LABELLING AND STANDARDS ................................................................................................................... 49 7.3. WATER EFFICIENCY ......................................................................................................................................... 49 7.4. ECO INNOVATION ............................................................................................................................................ 50 7.5. SUSTAINABLE TRADE ...................................................................................................................................... 50 8.0 THE RODRIGUES CASE ................................................................................................................................. 51 8.1. SITUATIONAL ANALYSIS .................................................................................................................................. 52 8.2. AGRICULTURE SECTOR .................................................................................................................................... 54 8.3. MANUFACTURING SECTOR ............................................................................................................................... 60 8.4. TOURISM SECTOR ............................................................................................................................................. 62 8.5. CROSS-CUTTING ISSUES.................................................................................................................................... 63 2 8.6. CONCLUSION AND WAY FORWARD OF RODRIGUES ........................................................................................... 64 9.0 COUNTRY IMPLEMENTION PLAN ............................................................................................................. 65 9.1. COUNTRY PROJECT LOG FRAMES ..................................................................................................................... 65 9.2. RESOURCE MOBILISATION AND UTILISATION ................................................................................................... 66 9.3. MONITORING AND EVALUATION OF SAG COUNTRY PROJECTS ......................................................................... 67 ANNEX 1 DIAGNOSTIC COUNTRY PROJECT LOG FRAMES .................................................................... 69 ANNEX 2: SUMMARY OF OUTCOMES OF VALIDATION WORKSHOP IN RODRIGUES 1ST JULY 2016 .................................................................................................................................................................................... 80 ANNEX 3: REFERENCES ...................................................................................................................................... 84 ANNEX 4: KEY INSTITUTIONS CONSULTED ................................................................................................. 89 ANNEX 5: TERMS OF REFERENCE ................................................................................................................... 90 List of Tables Number and area of holdings by sector, July 2013 - June 2014, Islands of Mauritius and Table 1 13 Rodrigues Percentage distribution of holdings by size and sector, July 2013 - June 2014, Islands of Table 2 13 Mauritius and Rodrigues Percentage distribution of holdings by Activity and Sector, July 2013 - June 2014, Islands Table 3 14 of Mauritius and Rodrigues Table 4 Breakdown of area and number of farmers per type of activity 14 Table 5 Abandoned land area under cane cultivation over the past 2 decades 15 Table 6 Trend in Abandoned Sugar Cane Land - 2001 to 2015 16 CIF value of food imports in 2013 and 2014 from Digest of External trade statistics SM Table 7 19 2014 Table 8 Data on Small establishments: Production units, persons engaged, and value added 27 Table 9 Units, employment and output of small production units by industry group, 28 Number of SMEs registered with