22.01.2025 - Meeting with World Bank Country Director - Follow up

Correspondence Overview

  • Sender: Nita Teeluckdary, Lead Analyst Resource Mobilisation UnitRecipient: Alankar DhondooCc: Various officials from the Ministry of Finance and Government Office

  • Subject: Draft Brief and Meeting with World Bank Country Director.

    • Attached: Annexes 3 and 4 concerning Economic Notes

Meeting Context

  • Date of Meeting: January 27-29, 2025

  • Purpose: To discuss collaboration and reaffirm partnerships between Mauritius and the World Bank (WB).

  • Participants: Hon. PM, Minister of Finance, WB Regional Director, and other officials.

Objectives of the Visit

  • Strengthen Partnerships: Emphasize ongoing cooperation and project implementation, such as the Rodrigues Airport Project.

  • Discussions: Addressing economic challenges and assessing support areas from WB to enhance government programs.

Proposed Talking Points

Introductory Remarks

  • Welcome Message: Hon. PM welcomes WB delegation, expressing appreciation for continued support.

  • Government Priorities: Focus on reviving the economy, addressing macroeconomic challenges.

Ongoing Engagements with WB

  1. Market and Economic Assistance:

    • Assistance to Bank of Mauritius related to the Investment Corporation’s strategic outlook.

  2. Rodrigues Airport Project:

    • Discussion on financing options and project implementation timelines, with a loan of USD 184 million from WB.

  3. B-Ready 2024 Report:

    • Introduction of new analytical frameworks to evaluate doing business factors.

  4. Climate Change Development Report:

    • Upcoming mission to assess Mauritius’s climate policies and finance needs for improved resilience and emissions management.

  5. IBRD Flexibility:

    • Discussion on loan pricing structure changes to support borrower flexibility.

Economic State Review

Current Challenges:

  • GDP Growth: Low growth rates impacting macroeconomic stability.

  • Structural Constraints: Issues concerning water supply, energy reliability, low productivity in transportation sectors, and labor market dynamics.

  • Youth and Female Unemployment: Highlighting urgent employment challenges.

  • Government Strategy: Aiming to implement a Medium Term Fiscal Consolidation Plan addressing budget issues and investment clubbing.

Upcoming Structural Changes

  • Diversification Initiatives: Expansion into renewable energy, fintech, and bio-pharmaceuticals markets.

  • Development of Infrastructure: Focused improvements in transport and telecommunication.

Economic Indicators Summary

  • Growth Rates (2019-2024): Emphasizes trends in GDP, investments, employment, and economic output fluctuations.

  • Current Account and Public Sector Debt: Assessment of Mauritian financial health showing critical balances and liabilities.

Conclusions

  • Overall Objective: Government aims for a 4% to 5% growth rate while maintaining fiscal responsibility to enhance living standards and investment appeal in Mauritius.