The Administrative Council of the World Bank (WB) has given the green light for the disbursement of a loan of $50 million to Mauritius.
Official sources at the Ministry of Finance indicate that the financial agreement, which represents the “Fourth Trade and Competitiveness Development Policy Loan” aims to financially sustain the economic reform program the government set up in 2006.
The reform program was set up to cushion the “Triple Shocks” following the reduction in the price of sugar by 36%, the erosion of preferential trading in textiles and the increase in the price of oil.
WB resident representative in Mauritius Constantine Chikosi said the objective of the financial assistance will be to ensure “the transition from a low wage, low skill sugar and apparel exporter to innovative knowledge and skill-based services economy.”
Chikosi added that the Mauritian government and the WB have together identified four policy areas, including the consolidation of fiscal performance and improvement of public sector efficiency and trade competitiveness.
Mauritius will also have to improve the investment climate and widen the circle of opportunity through participation, social inclusion and sustainability, he declared.
For his part, WB Task Team Leader Fabiano Bastos pointed out that Mauritius has managed to avert a collapse on output and employment and that the resilience of the Mauritian economy is a testimony to the positive impact of the reforms carried out since 2006.
Source African Press Agency
