POLITICAL TURMOIL AND ITS IMPACT ON BUSINESS...

Much has been said and written on the political turmoil that is apparently hitting Mauritius. It’s true that the moves were spectacular – the President of the Republic of Mauritius resigns and plunges back to active politics.  He proposes to be the next Prime Minister to rescue a country on the downfall!  As the architect of the modern Mauritius, Sir Aneerood Jugnauth (SAJ) was (and for many he is no longer) a much admired personality. Controversial many a time; but then this is expected from every determined leader that leads a nation with a vision and ambition.  Resigning from the most gratifying retirement post in the country (Presidency) to again face active politics and its bruises: you’ve got to have strong reasons. Many of us do not agree that the country’s progress is the main motive behind the move.

We’ll leave the political motivations and other strategies for some other time.  I’ve been thinking on the impact that a political turmoil might have, particularly during this actual worldwide economic crisis, on Mauritius.  Bear in mind that this is not a scientific analysis of the situation, but my personal opinion based on observations made by a common layman, which I am.  You may be deceived, I warn you.  You won’t find any economic theory or political analysis of our system, depicted in heavily colored illustrations and charts. Neither will you find a post-mortem report of local history.  I leave this to the more learned people around!

To me, political stability has been one of the key factors of our progress so far.  My definition of political stability lies not in having the same governing party over a long period of time. I’d rather define stability as the coherence in vision among successive leaders and the smoothness of the transition processes.  So far we have seen that most leaders share almost the same vision. There a visible consensus on the resources we have (and don’t have), the industries we need to develop and the way forward. We all agreed that the country’s ambitions should not be limited to the size of its surface area, we all agreed that we have the potential to play leading roles in the region and on the world scene – we all agreed on these and have been working towards these. We still agree, and so do the leaders.

It is the duty of the opposition party to shout and cry out on every opportunity it has.  The actual leader of opposition, Mr Berenger, is famous for his hysteric statements, so much that he makes me laugh (I give him a big LOL!) whenever he says anything. I'm sorry, but even if he's right, my brain can't focus on him anymore. Maybe if one day, he gets the Prime Minister's chair, I will think differently; but then, that's a different story in today's context.  Decades back, we would rely on the information opposition parties would relay to consider whether a particular transaction or event could be qualified as scandal.  Today, we have different  means to obtain information; internet, blogs, forums and private radios.  Thank God!  When the opposition party shouts high and loud that the country is in a catastrophic state, I tend to smile and say "there he goes again!". I only say to myself that the guy is doing his job - honestly and to the best of his abilities.  He has the habit to utter strong words like 'etat d'urgence economique' (when he himself was holding the reigns of the country and was panicking during the financial crisis) or to treat others with discriminative nicknames 'Lake lerat' (rat tail), or to qualify people as 'intellectually limited'.  Sorry for this long paragraph but I had to write this to make my point: I simply can't take on his words, unless he shows some concrete things - which he hasn't done so far, in my opinion.

Now he has convinced SAJ to join him and save the country. To save from what?  The only thing I can see the ex-President saving is his son, Pravind, completely drowned in the political ocean and about to be completely erased from the local political scene.  Now you can refer to the last sentence of my first paragraph and read again.

Having said all this, I do not foresee any major upsets in the business environment. In fact, I do not even foresee any upsets at all! I may be wrong; I'm not a political expert. But I can't help myself thinking that this is another tune from the same trumpet. In fact, the leader of the opposition shouted on every roof that we will soon see major developments, through the resignation of SAJ, yet again the so-called major developments are yet to come.  The resignation of SAJ was the talk of the town for two days and all the excitation has faded and reduced to petty gossips. 

I don't expect any impact on business environment.  Our economy allows for freedom-of-business, if I may define the principle in these words. As long as you observe the rules and regulations in force, you are pretty free to run your enterprise.  We don't have a sensible stock exchange which fluctuates with the tides, human emotions, or whatever other non-economic & non-financial reasons traders usually put forward.  Politics has very little effect on business in Mauritius, unless it leads to major regulation changes (tax system, regulatory conditions, etc.). Obviously, when the government changes, there is an observation round. Investors are less reactive, they stand on the watch-out mode but stay ready to shoot when the signal turns green. It turns green when people get back to work again and the general excitation is over. 

In Mauritius, you shout, cry and shout again...for some hours or days, and then you realise that you need to feed your family so you get back to normal life again. Back to work or to your business.  There is a minority who has nothing to lose and who looks for every opportunity to get back to popular movements on the streets.  It has never lasted long, never gathered any big momentum, save on Facebook. 

As someone running his own business, I always keep an eye on the external factors that may affect my company; and politics is one of them.  It never had any major impact on my business.  Yet this business of mine is deeply connected to the political-social-economic equation.  If the government stops encouraging foreign investment, or removes business incentives (low tax rate, user-friendly procedures, etc) – my business would definitely hit a low and I would need to restructure my service grid.  It hasn’t so far as successive governments have understood the importance of foreign investment and the need for a simplified business framework.  Entrepreneurship is encouraged and local people given ‘almost’ every kind of nursing to help realise their business projects. I can’t see this stopped by any future leader, well I really don’t.  If it happens, it will be a Kamikaze at the head of the country.

All brings me to the final remark that politics is more related to soap operas.  You know that the actor will fall in love, will marry the actual actress, will fight with her, ask and get divorce and then fall in love with another one.  The scenario will keep on revolving with some new twists and turns… that’s exactly the case in Mauritius.  When the show is over, switch off the TV - get back to work, until the next episode starts.

Warning: Soap operas can be addictive and are injurious to family life

           

Mauritius - small country, big nation...!

Oprah Winfrey is no longer the wealthiest person from the black community.  Ok, that’s news! What’s better is that the leader, in terms of fortune, is someone from the African continent. Mr Aliko Dangote, cement-king, from Nigera is sitting comfortably at this position.  His wealth is the result of long years of sweating. He now weights USD10 billion. 

From a small cement trading company created in 1977, Mr Dangote has worked his way to a multinational pan-African enterprise. No, it’s got nothing to do with corruption, fraud or whatever other illegal money-making instruments we know of.  Yes, it is proof that people can also succeed in Africa. By the way, why is it that when a US citizen makes money, we assume he’s good in business and when it’s an African... we assume its money from bad deeds? Maybe because of the not-too-glorious past of Africa, ok I’ll satisfy myself with this one.

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Well, the performance of Mr Dangote is not a exceptional or spectacular at every level.  Africa has activated its stealth system and is progressing at constant speed without catching anybody’s attention.  While the world is focussed on Asia (and China) – mama Africa is moving peacefully to success.  There is a confirmed economic growth winding prevailing from the west (Ghana) up to the south (Mozambique).  This is the highest growth rate so far on the globe!  Take Ethiopia, for example.  It has a growth rate of 7.5%. From a crouching and kneeling country, devastated by an endless famine to one of ten largest livestock producer of the world, Ethiopia has done supernatural progress.

Severe income disparities persist through much of the continent; but a genuine middle class is emerging.  Things are changing now.  Banks operating on the African continent are unanimous on this point. This market is growing at a respectable pace, better than in certain ‘emerging nations’.  At this stage we can’t say that Africa has rid off its old habits and problems.  But the fact remains, and I insist, that Africa is progressing in a spectacular fashion.  Just a note to say that international trade between Africa and the rest of the world has known a 200% increase since year 2000.  External debt was reduced by 25%, budget deficit by 66%. Overall, Africa is doing better than Asia (excluding Japan).  I’m not an expert in economics but I trust The Economist Magazine and his published materials.

So why I am talking about Africa?  Well, firstly I feel proud to see the black continent standing on its feet and not on its knees. I feel proud whenever I see such efforts deployed and the willingness to succeed take form.  I was once on my knees and now jumping… The second point is (and it is the most important point of this article) – Mauritius is playing an important role in the new Africa economic dynamism.  Cast a glance at the picture, the figures say it all! Only Botswana is doing better than Mauritius. Again, I trust The Economist Magazine !

In the wake of the financial crisis hitting Europe, Mauritius proposes a safe business and holiday destination.  We are able, today, to propose cutting-edge & low-risk solution as compared to what is available in Europe.  We have solid banks, some boasting a profit of over Rs4 billion.  Our banks do not gamble and blame traders – we all mean business, we always did…. Africans always did but did not have the gas pedal under their feet.  They have it now.  We have had our trouble times and unpopular measures taken by Governments. Thank God! We are better now while Europe is facing Austerity measures. 

I cannot put myself in the shoes of the European investor or entrepreneur, but he is surely in a bad ‘financial or emotional trip’ right now. I’m wondering what’s in the mind of those youngsters full of capabilities who want to launch their business! Sure, the Nicolas and Angela couple can give birth to a super-economic-baby, but when ?  Is it in the making? Not sure.  And when it’s born, will it be able to survive the financial tsunamis ? And when will it be able to talk and walk ?  I know that my European friends have many more questions like that.

That brings me to a clear observation: Mauritius is now doing better than Europe! We are progressing and I don’t see anything stopping that progress, except the impact of the European crisis. We are able to cater for free education, free health services, exceptional quality of life, climatic and political stability (with its folkloric gossips), free transport for students and senior citizens, top class to-be road network, free WIFI all over the island… the list can become quite long. Many projects are in the pipeline, many needs improvement…but globally we know what we want, and we are doing everything to reach our target.

To invest in Mauritius no longer needs convincing. It’s now more than an simple ‘interesting’ option, it is a serious option.  Doing business in Mauritius is such a pleasure.  Streamlined legal framework, modern business laws, competent people… the finest international trade treaties, what else? Can you really wait for the Merk-ozy couple to come up with that superpower economic child, will they be able to give birth to it? Can you afford waiting, can your family afford it, and what about your own children?

European should start finding other ways to protect their wealth. And I’m not talking about creating that wealth, could be something out-of-this-world right now. But let me tell you it is possible to create wealth from Mauritius, oh yes it is.  If you want to know more, visit our website at. http://www.gibsonandhills.com or contact us by email.  We will be glad to see how Mauritius can accommodate you for a brighter future.

Don’t forget to send a ‘Congratulations’ card to the Merk-ozy couple if they happen to get that baby walking.

Invest in Mauritius, easier in a month?

Foreign Direct Investment (FDI) has known a significant decrease since January 2011.  The big-thinkers and government analysts once again put the blame on the international financial context.  True to some extent, but not entirely.  Some of those experts have always been blaming the international economy for every of those problems we encounter – sometimes to justify their incompetence, sometimes to hide themselves.  Those who tried to relocate to Mauritius during the past months know it well: the problem lies within the authorities (not to mention the Board of Investment) and their ever-changing rules and regulations.  In 2006, when the Business Facilitation Act was introduced, the doors where wide open… and with a big bang they closed it in January this year.

Mauritius Island does not have any natural resource or wealth.  We are completely dependent on certain specific industries: tourism, financial services … and on our ambition to become a cyber-island (guess what this means!).  If we want to keep pace and give a chance to our ambitions, we need to give due credit to foreign capital and expertise.  The foreigner is not someone who just puts money in our economy and sit back in his country.  He needs to stay, in most cases, on the island and work along his money.  The residency permit becomes essential.  By systematically refusing to grand residency permits to investors, the Board of Investment has slowed down FDI.  Blunt but true!

In a month or so, the new Finance Minister will present his annual budget speech.  That’s where the major changes to business laws are brought, and that’s where the government gives a clear definition of its objectives.  The Finance Minister, Mr Xavier-Luc Duval (XLD) is a reputed Chartered accountant.  His competence cannot be disputed. I have had the opportunity to work in his firm some years ago and with him, we developed his ‘Expatriate Services department’.  I know that he understands the hopes and exigencies of foreigners relocating to Mauritius.  His statement in the press confirms it.  XLD is planning to streamline the actual system to facilitate and encourage foreign investment to Mauritius.  True that we have made impressive progress – I still remember those days when you needed an Attorney-At-Law to open your company – today this is a very simplified procedure.  So, I’d rather think that the adjustments need not target the business law segment, but rather the immigration law & rules where we have visibly regressed.  Regression is visible in the procedural aspects, the mentality of those civil-servants processing the application and those appraising the applications.  We have a real problem when the government is still requesting people to show birth certificates, as if the original passport presented was not enough.  What’s the point of showing a birth certificate in original?  They want to get acquainted to your dad and mom!?

XLD will be presenting his budget speech for the first time!  I know the guy will get out of it with brilliance, I know, I know him.  During the annual salary compensation tripartite, he was excellent.  The first Finance Minister I saw being applauded by the trade union representatives!  He knows better than me in what chaotic situation the Board of Investment is operating within.  He values FDI and foreign competencies.. so I guess he will come up with something fantastic.

I’m eagerly awaiting his speech and  I foresee some revolutionary measures that will boost Mauritius in the eyes on the international community of investors.  If we get foreign currencies flowing in again, we might be able to navigate out of trouble waters.  If we don’t, don’t ask me to pay more tax and pay for those glamorous Road shows that the Board of Investment officers enjoy year-in and year-out, during their ritual trip to Europe.  Inefficiency, waste of MY money and party – that’s what it’s all about.

If XLD is still, and he appears to be, the same person I’ve had the honor to work with, then people, we have some hope lying ahead!  

Good Luck Xavier…!

DEMO(N)CRACY

Political stability is one of those wild cards that Mauritius waves when speaking of itself. Oddly enough, many of my countrymen don’t see the political situation as a stable one – while the whole world seems convinced that we’re having one of the best democracies on the planet. The situation is not a paradox but may be confusing for those willing to set home in paradise-island. Here’s my two pence worth of comments and opinions.


Stability through Historical Coherence

What everybody calls ‘stability’, in my opinion, is more a historical coherence that has been prevailing over times. We are inspired (or directed) by our historical origins and ties. India, for instance, is (and has been) inevitable. The majority of our population is of Indian origin; descendants of the indentured Indian laborers. Needless to convince anybody of the impact of India on our political system. Even if we are not tagging ourselves as communal or racists, we do accept that the Prime Minister-ship of the country should always be held by a Hindu, and that, of a particular elite caste. The only non-Hindu having tried his luck as Prime Minister had first to bargain for a two-year mandate (with a Hindu ally) instead of a five-year term. Thereafter, he stayed glued in the opposition.



Yes-so: historical coherence, I was trying to define this. The basic point is that every leader of the country vows an unconditional fidelity to India. Such vow pleases the powerful socio-cultural lobbies and paves the way for non-disturbance of our Mother-India-styled-heart-throbbing emotion. So we have a consensus on two things here: we need a Hindu Prime Minister & India is our mother. As long as we stick to these two basic factors, we follow the rail… and the train moves. This is very basic as opinion, but for me it is the fundamental equation of our political system.



Now, take the above example and apply it to any part of the world from where our population originates, you will get almost the same results. Europe, France: from there came the first colons. They took possession of lands, developed the sugar cane industry, owned the mills – and proved to be very sharp businessmen. The situation is still prevailing at this day. Descendants have, for so long, been at the head of the economic Mauritius. They made our success on worldwide sugar trade, then shifted to tourism with the same success. Take one person from that part of the population and transform him into a taxi driver: you’re inviting trouble. That could shake the whole nation! You might be putting the legendary stability at stake.



Another example? People of African origin. Our ancestors from Africa were slaves and manual workers – after abolition of slavery. The descendants are known to be strong men and therefore ideal for manual works. Their situation is somewhat close to slavery and most of them flirt with the poverty line. Am I being racist? No, never, I’m talking about stability. True, however, that the younger generation is trying its best to get out of this tagline… and has so far been wonderfully successful. The mentality and the perception is still the same though: black people = hard work + low pay! Sad! Who does not remember the Black Golden Boy: Jean Suzanne? Sure, his downfall was somewhat his responsibility – his skin colour brought him to the worst Court of Law: trial by public. He shouldn’t have been at the head of such a fortune, firstly – and that’s most people blame him for. He’s black, if he’s rich, then he’s either a swindler or a thief. We have a common expression: Nation (black people) soit li voleur ou li vantard! Go and seek a translation – and please, don’t be surprised.



As long as we don’t disturb the above equation, we are sure to keep the country stable. We bet? I define this equation as Historical coherence.


Dynasties and innate qualities – Political coherence

Political coherence, under my definition, has a similar working mechanism. We can call ourselves stable because we are not disturbing none of the well established mentality, even if they are outdated and obsolete. Doesn’t matter if some of us believe that we are not evolving… we are not disturbing anything, so we are protecting stability.



The country’s leadership changes and evolves through a system of dynasty. Being of a certain religion or caste is not sufficient – you have to be from one of those ruling dynasties. Take the actual Prime Minister as example. Hon Navin Ramgoolam is the son of the father of the nation, Sir Seewoosagur Ramgoolam. No, I’m not discrediting him from excellent leadership qualities. He has proven to be a very good Prime Minister, on his second attempt. But still, I can’t help wondering whether he would have reached that position if he was not the son of his dad. We have all been laughing on his frequent reference to his dad in his speeches: ‘Mo papa ti dire (my dad said).. mo papa ti fer (my dad did..). I think that beyond these innocent statements and beyond the simple father & son affection, he was just deliberately hammering the name of his father on our brains and get us mix him and his dad. That’s what dynasties are all about, aren’t they? When you vote, you vote for what Ramgoolam represents to your brain; a large part of his party supporters think that way.



The other big dynasty is the Jugnauth. Sir Aneerood Jugnauth was the great architect of the modern Mauritius. He had a vision – and I remember he was the one to bring color television and video players to our households. As a kid, all I could gather was that and it really stayed in my mind. Told you, I’m a common man, not a political analyst – not even a political observer. In the 80s, Sir Aneerood Jugnauth led the country’s transformation and earned us the status of ‘Tiger of the Indian Ocean’. From a sugarcane dependent economy, we ploughed our way to be one of the most reliable textiles manufacturers of the world. Massive investments from Asian giants gave birth to an impressive number of textiles factories in the country and in turn created employment. Revolution: housewives were transformed into income earners and many households saw their income doubled. I witnessed this major change in the country. Was a bit weird to see buses full of ladies in the morning, going to work, being active and happy to contribute to their households – and to the country’s economy. From there, the consumer market exploded. Color TV (again, yeah), VHS video players, washing machines, people were getting sophisticated and modern. All thanks and glory to Sir Aneerood Jugnauth.



The son and brother of Sir Aneerood came to the political world through this new dynasty. If you are a Jugnauth, then the population would assume you have the charisma and the potential of a Prime Minister. Did we not see Mr Ashok Jugnauth (brother of Sir Aneerood) being proposed as a Prime Minister candidate – even if he did nothing exceptional as a Minister? Pravind Jugnauth (son) also flirted sometimes ago with the Prime Minister’s seat and he still stand as a ‘serious’ contender for this role. This is what dynasties are all about (bis).



Point to note on the two dynasties above: they have all the qualities – they are Hindus of a particular caste. This is not a racist statement but the reality of the political Mauritius.



A smaller dynasty would be the Duval. Origin: Sir Gaetan Duval, mastermind of the tourism industry of the country. He was a popular figure, glamorous, generous and super-charismatic. Not from a Hindu religion but a catholic – an exception from African-origin population. He had the support of creoles and Catholics of the country and therefore was an important element on the political scene. An alliance with him guaranteed votes from the creole population, crucial sometimes to get a majority in parliament. Fun-loving and ‘bon vivant’ he had a very turbulent stay while in power. First owner of a Rolls Royce, one of the most popular villas on the Island, friend of monarchs and sheiks, known to international stars – he happened to position Mauritius on the international stage as one of the finest tourist destination. Success of our tourism industry is based on his efforts and connections. Xavier-Luc (son) took over. He enjoys almost the same popularity and represents the creole population of the country. A fine and intelligent person with whom I had the privilege to work for years, Xavier-Luc (even if he denies it) enjoys the benefit of his family name. Naturally he was a very good tourism minister. But lately he was shifted to a less glamorous post: Minister for Social Integration. Now with the latest political turmoil which saw Pravind Jugnauth ejected from government – Xavier-Luc has been posted to the Finance Ministry. I’m confident that he’ll do a good job there because I’ve known him as one of the finest Chartered Accountants of Mauritius.



Richard (the other son) is also enjoying the windfalls gains from power. I don’t know him personally and cannot remind myself of his contribution to the country. If you know of any of his works, please help. True benefit of being in the dynasty, however small that dynasty is. He enjoys duty-free German limos, is paid a salary from tax contribution and has a good life. I know of many young people who would do tremendous things for this country if allowed the same privileges and honors. But these young people do not belong to any dynasties – too bad for them!



There are some exceptions. There are some exceptional talents that emerged from nowhere and carved their names in the political arena. Well I find a simple explanation for that: dynasties are not yet large families, we are a young nation and we’re still building up. The dynasties have to recruit support to keep them on the topmost position.





Internet revolution – glowing light

The rotation of power among dynasties does not please – and should not please – many of us. There are so many competent people out there to serve the country, but it’s almost impossible for them to get in the play. The political scene is framed and controlled – access is limited, your profile should suit the sentry. I’ve seen some movement on Facebook and Linkedin. Some are now trying to bypass the classic system and instigate a small revolution through the internet. Hope it’s not going to be as radical as in Egypt – yeah, to be honest we don’t have Mubarak here, our leaders are not ogres. If they were, I would not be sitting here writing all this!



Those leading this internet revolution are fed up seeing the same people (and families) in power and they are right. It’s time to renew the political environment with new blood and new ideas. We are thinking of having competent persons in the leading roles, not simply representatives of a particular section of the population or bearers of impressive family names. Very honest cause, I admit. But then, let me be the Devil’s advocate: we will surely have some collateral damage – are we ready to bear the consequences? Will we be able to absorb the Opportunity Cost?



Let me just expose two points: First, the historical voters (those who vote by tradition) need to change their mindset. You see that grandma in her red sari kissing ‘her’ Navin voting for a dynamic and competent professional who doesn’t inspire anything to her? Do you see Tonton Michel in his blue shirt voting for someone other than a Duval? This is where the votes are. Mauritius is all about tradition and it’s dangerous to try and change tradition, isn’t it?



My second point is that we would necessarily go through a ‘trial and error’ system. Potential ministers might not necessarily be good ministers. By the time we test, confirm or replace someone, we will be losing pace in our development. This could cause some damage, great damage.







Do we need change? What to change? How much to change?

We don’t change a winning team my dad used to say (and Kenny Dalglish also!). Mauritius has been progressing steadily over the years. Don’t be a hypocrite please! It’s good to live here, you are free to do and live your life the way you want. I am from a modest family (my dad was a primary school teacher) – but happen to get out of my small village to get myself an office in the Cybercity. I worked my way through the maze; focused and determined. Many of my friends also did the same. They are living a pretty happy life with their families, got a car & a house…and a dog & a cat – breathing fresh and enjoying the salted water of our lagoons.



I’m not saying that things are perfect. There’s always room for improvement… What risks are we ready to take through change? What if tomorrow we lose that freedom – or what if we spend some decades in a slump because of change? Are we ready to take those risks and, for example, expose our kids to them? The country could collapse if we bring a radical change. Is a revolution justified when people are living quite a free and happy life? My experience as a Mauritian: everything is possible, if you work for it.



I love this country. If Americans have the American dream (and most of them trying to survive), Mauritius is not too far away. Laborious people will always succeed here and really, it’s not that difficult to succeed. The ex-Finance Minister, Mr Rama Sithanen, is a concrete example. He comes from a poor, very poor family but he is one of the most talented finance expert of the country. He worked his way towards most senior position in the top 2 companies on the island. And then (he is one of those exceptions I mentioned above) – he was used as support to safeguard Navin Ramgoolam’s position. When not needed, he was kicked aside without any elegance. And that’s the political Mauritius. Else he is still enjoying a high-level job, great pay and honours. And that’s real Mauritius.



So I conclude that Mauritius is free and fair! If you want to live your life, achieve your dreams and secure your family – you’re in the right country. But if you have a political agenda and want to serve the country, then you’ve got a different fight at hand.



Before trying to change, we need to cast a look at other countries around us and compare. It’s always good to review a well-anchored system after some time, test whether it still stands good in the modern world or whether changes are to be brought. My question goes beyond that point: what do we need to change? How much do we need to change? Are we prepared for the consequences?



Dear readers, feel free to comment. But please bear in mind that I not a political expert, but a common man. This article reflects my feelings and my way of seeing things around me.



I seek to educate myself constantly, so your criticisms and comments are most welcomed.

Mauritius, ready to welcome investors back again... my bet.

Since January this year, I can't count the number of times I've cursed the Board of Investment and its officers. Incoherence and total confusion, a ship navigating in trouble waters... and no captain on board. I had a go at several theories, trying to guess as to what can possibly motivate such an important office to act in such irresponsible manner. I think I've got a clearer picture now, and it all comes out of the political fog that has been covering the island for some days now.

Following the Medpoint scandal, six ministers from the MSM party resigned. Comments of every nature, aroma and taste were flowing around and I said to myself 'what a wonderful confusion'. This Sunday morning, sitting in the car (while my wife was enjoying her shopping with mother-in-law), I got the opportunity to hear the resigning Minister of Finance and leader of MSM. And GOD really showed me His love; I switched on the radio just when the ex-Finance Minister was speaking about the BOI. Oh my God! Light up my cigarette, all organs in receptive mode... I never paid attention to this arrogant cry-baby as he's always pretending to the one with the highest IQ on the island. Well, I never really liked his arrogant tone. Anyways, cigarettes and attention, here we go.

Mr Pravind Jugnauth was speaking about the Prime Minister's initiative behind the setting up of a monitoring committee to appraise all occupation permit applications received. He referred to this committee as a parallel Board of Investment, acting in full authority and impunity. Mr Jugnauth now voices out his frustration as the Board of Investment falls under the direct responsibility of Ministry of Finance but no one from his department was appointed on this committee set up by the top most powerful man on the island, the Prime Minister. I can deduce that the Board of Investment is a politically strategic house and the Prime Minister kept this under his arm. Was it a mere political thing behind all this mess at the Board of Investment? Honestly, once it went through my mind, but then I threw this theory to the bin thinking that Board of Investment is such a hopeless case that it won't attract anybody. I still don't understand why the Prime Minister has kept his veto on the BOI. But at least it explains why no one could explain in the past... what the BOI is really up to.

Was it a deliberate plan from the Prime Minister, in his apparent endeavour to discredit his then Minister of Finance, in his strategy to get rid of him? Much has been said in the press on the decline of foreign direct investment (FDI) and the BOI had fingers pointed in its direction – it underlined, somehow, the incompetence of the Mr Pravind Jugnauth as Minister of Finance. I’d think that all this was planned on the day the MSM of Pravind Jugnauth joined forces with PTr of Navin Ramgoolam. The equation was not that complex after all: break your opponent’s team by hiring one of their players ... win the game and then send your recruit to the trash. To further explain your action, show his incompetence.

There has been some collateral damage, of course. And one of those collateral damages is the incoherence prevailing at the BOI with the result we all know today.

The new Minister of Finance is a competent person. I have personally worked under his wings for a couple of years. He is a chartered accountant and has been at the service of foreigners relocating to Mauritius. He understands, I bet he still do, the needs of investors and the technicalities that lie behind a relocation process. Mr Xavier-Luc Duval is a respected professional and I feel relieved that he is finally at the right place...

I think that things are going to change in the near future and we will be welcoming foreign capital and expertise to Mauritius with the same smile.

MAURITIUS IS NOT THE MOST DESIRABLE LONG-TERM DESTINATION

The government seemed surprised : foreign direct investment (FDI) has known a 75% declined. Are we failing in our ambition to attract foreign capital and expertise, or are we just being too arrogant? Is it the world financial crisis? You aren't going to throw this one to me again, are you? Euphoria is difficult to manage, we all agree. Since we launched the Business Facilitation Act in 2006, there has been a big response from the international market. We are superstars, the most desired country of the world...wrong guys, we're just an island.



Officially, the authorities are blaming this on the globally dull economic situation. Will someone, someday, stop blaming the world for every mistake we make? We are not Wall Street for God sake (err, some effectively believe that we are, but that's another story). FDI accounted for as much as Rs4.6 bn from January to March 2010. Guess what? We got only Rs1.4 bn for the same period this year. If you are still wondering what calamity broke on world's economy in January 2011, then you are heading to the wrong direction.


The problem is in Mauritius, it’s all in our attitude. The Government has set up a committee to monitor all applications for residency permits (Occupation Permits). The committee members act in complete impunity behind the curtain. Untouchable and incorruptible... Visibly these guys have misunderstood their role. It is obvious that they're having great fun rejecting applications. It wouldn’t be exaggerated if I say that it’s almost an orgasmic pleasure. The more they reject, the more competent they believe they are. It's a pity that they do not understand that each permit rejected directly impacts on FDI. The least we can get from an Occupation Permit is US$35,000 (self-employed). There are about 20 such applications rejected per week, according to information gathered from professional consultants.


I have one observation: it means that foreigners are coming to Mauritius with their money AND they are more than 20 a month!

 Pity, we area losing FDI and I’m not talking about job creation and tax revenue that we are rejecting.


One of the biggest sectors designed to attract foreign investment is the luxury living industry, well that's how we call the seemingly luxurious villas we have; the famous IRS and RES schemes. Again, we thought we were the most desirable country of the world, the new Beverly Hills for superstars, we are better than the fashion Paris and far more exciting than Las Vegas. Naturally our prices reflect our self-proclaimed super destination status. Do I need to tell you that we were wrong? Everybody dreamt of selling his piece of agricultural land for millions of rupees. Everyone is dreaming of that charming foreign prince coming out of the misty cloud, opening his fist to reveal some millions of € & $. Real estate prices shot like arrows. Mauritians could no longer afford a plot of land. I'm dedicating this paragraph to that fool offering his 2200 metre square bare land for Rs7.5 million when it’s not even worth Rs2 million. His argument: a foreigner has purchased a plot next to his... And he was talking to me; that's my field of expertise and I know that foreigners can't buy land directly! I have a dream, says every landowner.

 All of those land promoters have overestimated their properties and projects. Of course, the island is heavenly, we can't deny that. But isn't it foolish to think that the whole world is dreaming to come over? Do we have the infrastructure to accommodate the high net worth individuals? Do these guys satisfy themselves sitting in a villa near the sea or on a mountain? He has a yatch and a chalet in Switzerland. It's stupid to think that we are impressing them. Their bathroom are more luxurious than many of the properties we are offering. Where does Ms Paris makes her favorite show-off session? Under the coconut tree, isolated on acres of land? A good tourist destination does not necessarily mean a good long-stay destination. Check your boredom gauge, it takes an average 7 days to visit the best attractions, if we can call these attactions in this modern world. Wake up! Out of 53 official permits given for such developments, 36 have been able to start and 12 have simply abandoned. And we blame the world.
 There's no use setting up high powered committees to analyze the situation. It's so obvious. Foreigners will no longer come to the island unless we know what we really want. Incompetence is not to be tolerated but then arrogance too. People who appraise investment projects and screen investors should themselves have a strong business background or professional experience. Sorry, but I can’t figure out how people who have got no clues on business management can appreciate innovative projects coming from renowned promoters. No no, I just can't get that one to my brain. Imposing a minimum of US$100,000 per investor...and then refusing their permit despite their showing the money, and this, without any reason, is insulting. If I proved myself in my country, earned my money, then getting myself insulted in a foreign land is the last thing I would want. Can government officers shake off that arrogance of their skin and understand this point? Let's hope someday they'll have this on agenda in their lunch and dinner meetings held in 5 star hotels....built and managed by foreigners.
 Be realistic, we're just an island. Dubai is crashing out, did we wonder why? The solution lies not in inviting the President of Singapore and earn air-time on our local TV; tell him humbly 'teach me Master'...and change your mindset dear government servants. Maybe then you won't need to blame the world for your failures.
 Unless things change in the near future, I don't see the need to have a Board of Investment in this country and neither the reason to spend my tax money on road shows and investment promotion events worldwide.

Beware: country on move, nation at work!

The likelyhood of hitting obstacles is higher when moving than when sitting idle. Ambitious people very seldomly lose themselves in comfort zones, unless they believe that their objectives have been met. But then again, ambition evolves with our environment. They can be like the horizon, moving one step with each step you make. In my humble opinion, Mauritius is an ambitious country, and so is its population. The country is moving forward.

At a time when many countries are facing dire difficulties in their financial (and social) adaptation to the changing world, the paradise-island is always finding some ways to keep it's shoulders out of the trouble waters. The worldwide financial crisis reached our shores, but the vision and strategy of the government and major decision makers washed out any potential harm that this could do to us. True, we are dependent on the world market, but is it not marvelous that despite this we are progressing? There is, in the backstage, a real collective ambition to transform the country into a leading business hub and a first-class tourist destination. We are steadily moving towards our objectives. The shift from an agriculture based economy to a tourism destination raised a lot of questions. Collateral damage was part of the game too. The end-result justified the moves of successive governments (and their vision); each one with it's loads of impopular measures. At times, they were blamed for selling our lagoons to foreign investors and hotel promoters. Today, when we realized the progress made, almost everyone wants a share of the cake. Local tour operators, restaurants and tourism enterprises are flourishing - those who believed in Tourism and entered the industry early are now unreachable businesses for new competitors.

We are, maybe, at the doorsteps of a scenario similar to the one described above. Opening the door to foreign capital and expertise was not something Mauritians unanimously accepted. Mind pollution is a dirty game, and many play it well here. Again, the government is being blamed for selling the country to Dollar and Euro owners. Some years later, those carrying out the blaming exercise will realize that they just missed the bus. Well, I'm not a pro-government activist and neither am I a friend of our Prime Minister (like so many of those big-mouthed people I know). But I admire the guts and daring attitude of this government, particularly of the Prime Minister. The opposition is left in a total confusion of its own, messing political battle with country's progress. Everything becomes a scandal. Fortunately, the government is focussed and keeps moving the country towards new heights. The population too.

Every action cannot be explained while it is being performed. You have to let time show you the results and the results justify the action. When the action is being performed, you've got to trust the performer. Right now, the population, well the majority of it, trusts the government. Some dogs will always bark but this doesn't stop the caravan, right? This government is ruling its second successive mandate of 5 years. The results are visible - even to the blind. Mauritius is a vast construction site: shopping malls lifting their heads out the ground, extension of our main highway, upgrading of infrastructures, increasing tourists and superb hotels. Again, there are inevitable collateral damages, as in every sphere of life. We are not perfect... But then, no one is. When you start to see Lambos and Ferraris on your roads, you realize that there's at least something positive for some people. It whispers the words 'Yes, we can' gently in my ears. Those behind the wheels of the angry bull and the black horse are not superstars and neither ministers, they are people who have seized the right opportunities at the right time. Somewhere, .. they believed in the country, it's economy and business potential AND its ability to fulfill their dreams. These people did not waste their time analyzing claimed scandals, they kept themselves focussed on benefits they could reap from the country's constant progress. Could be a materialistic statement, but I take full responsibility of my words here.

Then opposition has been blaming government on two massive projects: JinFei and Neotown. In the first case, the government gave Chinese investors major concessions to build a new city in the outskirts of Port Louis and in the second, you replace Chinese by Indians. It's true that the concessions, maybe, can be termed as excessive(low land lease, relaxed constructions norms and business conditions). No one seems to point to the fact that those lands, even being prime lands, were idle and required massive investments for development. Both of the projects mentioned are revolutionary in their concepts. They are paving the way for the future Mauritius. Why would investors come to this tiny island if no concessions are made? Why do they need to target a one million population market when they can easily go to Dubai and Singapore? There are concessions, of course, but there's also belief in our country. They know what we are planning to be and they know that we are giving ourselves the means to that objective. They believe in MauritIus.

In ten years time, Mauritius will be completely uplifted. The duty-free island will be a reality and many of world's giants will have a presence over here, if have not done so already. This is not a mere prediction, this is what many Mauritians see in front. Would you argue with your dad if he took one coin from your pocket and bought the winning lottery ticket with it? It's an open question which can bring many answers ... justified or unjustified protests. That's exactly what's happening in Mauritius. The essential thing to remember here is that we have the winning lottery ticket!