ADB Approves $240M Loan for Mauritius’ Economic Growth

In a significant development, the Board of Directors of the African Development Bank Group has approved a loan of $240 million to Mauritius to implement the second phase of the Economic Competitiveness and Resilience Support Program.

The approval was announced on May 22, 2024, in Abidjan, marking a significant milestone in the country’s efforts to enhance its economic competitiveness and resilience.

The second phase of the program aims to build upon the successes achieved during the first phase, which was implemented in 2023.

The program’s primary objective is to support improvements in economic diversification and competitiveness, as well as increase the country’s resilience and achieve more inclusive and sustainable growth.

The proposed program will also support the Mauritius’ economic recovery following the COVID-19 pandemic by implementing fundamental reforms to improve the business environment and real economy.

The loan will support several key government initiatives, including the approval of the fisheries framework bill, which aims to address gaps in current legislation regarding unregulated fishing and the use of sanctions.

This will help boost the fishing sector and provide new employment and income opportunities for Mauritians.

Another key initiative is the approval of the roadmap and strategic plan for the agriculture and livestock farming sectors for 2024-2030.

The plan is focusing on increasing production for resilient food security, promoting sustainable and resilient production, as well as entrepreneurship and agro-industry.

The program will also support the installation of rooftop solar panels for households with modest incomes, which will reduce their monthly electricity bills by 75 kWh for 20 years.

The program’s benefits will not only promote the share of renewable energies in the energy mix and reduce greenhouse gas emissions but also help reduce poverty among these types of customers.

The direct beneficiaries of the program will include the Mauritian Minister of Economy, Planning and Development, as well as other ministries responsible for areas covered by the operation.

The private sector will also benefit from better investment opportunities in agro-industry.

The African Development Bank’s Country Manager in Mauritius, Kennedy Mbekeani, welcomed the approval, stating that it represents a significant step towards supporting economic diversification and competitiveness in Mauritius.

“This second phase of the program will continue to support improvements in economic diversification and competitiveness, improve the country’s resilience, and achieve more inclusive and sustainable growth,” Mbekeani said.

“The program will also support the economic recovery following the COVID-19 pandemic through fundamental reforms to improve the business environment and real economy.”

Source: African Development Bank Group