During a dialogue session between the public, private and international institutions on Tuesday 8 December, Business Mauritius has presented the results of a comprehensive study on the impact of the COVID-19 pandemic on the business community in Mauritius. Initiated in partnership with Statistics Mauritius and with the technical assistance of UNDP Mauritius Country Office and of the Government of Japan, this study has seen the collaboration of 9 business associations, namely AHRIM, BACECA, MCA, IAM, MCCI, OTAM, AMM, MEXA and MBA and was conducted by DCDM Research between September and October 2020.

A total of 2,707 local companies; small, medium and large, operating in some 20 sectors, were contacted during the project. The main objective of the study was to assess the impact of COVID-19 on business performance, to assess the impact of the crisis on employment and to establish the needs of companies in the short, medium and long term. An analysis of the innovative Business Models implemented by companies to promote resilience was also done, and the survey aimed at offering a perspective from different aspects such as gender, sustainable development, sectors of activity. It also enabled the identification of practical recommendations to reduce the vulnerability of enterprises and households to the crisis. The report clearly demonstrates that the COVID-19 crisis has had and continues to have an extremely negative impact on the business sector. Overall, the survey shows that it is the SMEs that are suffering the most; this trend is systematically confirmed throughout the conclusions of the survey report.

In his opening speech, Vidia Mooneegan, President of Business Mauritius, recalled the social and economic impacts of the COVID-19 pandemic on the planet and stated that, before February 2020, it seemed unthinkable that a disaster of this magnitude could strike us. He acknowledged that the road to reconstruction will be long, but that this crisis can become a 'stepping stone' for the future. According to him, understanding the problems of this crisis can help us build new, more sustainable, and resilient models. 

According to Ms. Li Fa Cheung Kai Suet, Director of Statistics Mauritius, the study "provides insight into the impact of the pandemic on businesses and helps to better understand the type of support they may need.”

Ms. Amanda Serumaga, Resident Representative of UNDP Mauritius and Seychelles, pointed out that the purpose of the survey is to provide baseline information to facilitate dialogue regarding issues related to the pandemic, including evidence-based decision making for sustainable economic and social development.

Mr. Shuichiro Kawaguchi, Japan's Ambassador to Mauritius, said that the Japanese government has decided to extend its financial assistance to several countries following the spread of COVID-19. Part of this budget extension was used to fund the joint study of BM and Statistics Mauritius. He hopes that this study will help Mauritian entrepreneurs recover from the crisis and rebuild.

Mr. Kevin Ramkaloan, CEO of Business Mauritius stated: "What stands out the most, in my opinion, is the fact that the business community seems to have some visibility on its economic future in the coming months, or even the next quarter. However, beyond this period, we are in the dark. This is what is most worrying in the current context: nothing is certain".  

The presentation was followed by a discussion based on the results of the study, with a panel consisting of François Eynaud, CEO of Sun Resorts, Eric Dorchies, CEO of Ciel Textile, and Jennifer de Comarmond, CEO of Adecco, representing respectively the tourism, manufacturing and SME sectors. The exchange was moderated by Gilbert Gnany, CSO of the MCB Group and Chairman of the Economic Business Commission Mauritius. All the participants underlined the lack of visibility affecting the business community of Mauritius currently. Most businesses operate on a day to day basis, and their main objectives are to observe and adjust to changes in order to protect their business.

The discussion was focused on different aspects of the crisis, including the problems of Cash Flow faced by many companies, the fragility of SMEs and companies operating in tourism, the need to boost confidence between the different actors in the economic market, the need for more targeted financial support for certain sectors and additional incentives from authorities, greater agility in labour laws, and a stronger dialogue between the private sector and the State. 

Find the full report HERE.