5 Key Moves to Make Mauritius the Fintech Powerhouse

Rama Sithanen, the new Governor of the Bank of Mauritius, stated that developing innovative solutions within the banking and regulatory sectors will accelerate the growth of the fintech ecosystem in the country. As a former Minister of Finance, Sithanen is convinced that the benefits of fintech, blockchain, and artificial intelligence (AI) could elevate Mauritius to the forefront of nations leveraging innovative technologies to establish new economic pillars.

Mauritius is keen on seizing the vast opportunities presented by fintech, blockchain, and AI.

Sithanen is aiming to ensure that the country does not miss out on the current trend of identifying technologies that can foster economic growth while integrating sustainable development principles.

His ambition is clear: using the potential of fintech, blockchain, and AI, he envisions transforming Mauritius into a regional hub for innovation.

Fintech has fundamentally altered how financial sector entrepreneurs operate, while blockchain has revolutionized data storage and transmission in finance, leading to the rise of cryptocurrencies like Bitcoin and Ethereum.

Meanwhile, AI represents the pinnacle of technological advancement, showcasing the potential to replicate human intelligence.

Sithanen aspires to extend Mauritius’s role in this innovative landscape beyond its borders, positioning the island as a leader in the region.

“We want to take a holistic approach to develop Mauritius into a regional center for blockchain and fintech,” he stated on December 30th at the Bank of Mauritius Innovation Hub, dubbed Innov8.

Launched on September 4, 2024, Innov8 embodies the vital role of the banking regulator in harnessing innovative technologies for economic development.

This initiative coincided with the conclusion of the inaugural Hacktiv8 Hackathon Challenge, where 39 participants designed a banking cybersecurity application.

The competition was notably won by three students from Africa studying at Middlesex University: Sharon Salami and Akinbinu Moraanu from Nigeria, along with Awel Chuang from South Sudan, who collectively took home a prize of 250,000 Rs.

Dinesh Kumar Hurreeman, the Director-General of the University of Technology, Mauritius (UTM), emphasized the urgent need for the nation to embrace innovative technologies as a primary engine for economic development.

He pointed out that until now, technology in local economic sectors has primarily served as a growth catalyst rather than a main driver.

The focus has largely been on enhancing productivity and efficiency across various sectors, including manufacturing, banking, finance, healthcare, and education.

Positioning ICT as a Key Economic Pillar in Mauritius

Mauritius has yet to establish information and communication technologies (ICT) and IT services as a major economic pillar, comparable to sectors such as tourism, manufacturing, and financial services.

This acknowledgment came from key figures involved in the push for technological innovation in the nation.

One of the major benefits of developing an economic foundation based on innovative technologies is the potential to attract younger generations and curb the brain drain.

This would involve creating strategic investment opportunities in IT services and cultivating a highly skilled workforce akin to that of India.

Additionally, it would pave the way for a comprehensive ecosystem encouraging innovation, collaboration, and commercialization of ideas, leading to the development of innovative digital solutions aimed at enhancing social and economic progress.

Dinesh Kumar Hurreeman, Director-General of the University of Technology, Mauritius (UTM), emphasized that platforms like the Bank of Mauritius Innovation Hub and various university incubators can facilitate collaborations among industry experts, academics, students, and tech enthusiasts.

Such initiatives could drive innovative solutions in sectors like fintech and blockchain, revitalizing both public and private sectors.

The overarching goal is to leverage innovative technologies to transform Mauritius into a resilient, future-oriented economy, opening doors for higher education institutions like UTM to contribute significantly to human capital development and research.

Aslam Kathrada, Managing Director of NAK Enterprises, highlights the potential for a fintech-driven model to significantly revitalize the economy by creating new jobs and countless business opportunities.

However, he warned that if the country lacks sufficient expertise in fintech and AI, establishing businesses in these fields will demand a high level of skill.

“The development of this new economic pillar should signal policymakers’ intentions for Mauritius to become a smart nation, actively pursuing initiatives that align with innovative technological development,” he asserted.

Kathrada stressed that the concept of a smart nation should enhance the efficiency of existing systems across various sectors, including healthcare, education, transportation, and finance.

This vision aligned with viewpoints expressed by the Mauritius Chamber of Commerce and Industry (MCCI).

Dr. Drishtysingh Ramdenee, Secretary General of the MCCI, agreed with Sithanen’s perspective, stating, “Mauritius already has a recognized position in services, particularly within the ICT sector and service exports.

This is providing a solid foundation for developing this new economic pillar.

Our ecosystem is well-suited to attract and stimulate the emergence of businesses and startups in these advanced technological fields.”

He added that this focus would allow Mauritius to position itself as a major regional hub capable of delivering effective fintech and regtech solutions to meet growing regional demands.

Ramdenee noted that the technologies identified by the central bank governor have dual advantages: they not only create new sectors with fresh sources of economic growth, but also enhance the competitiveness of existing economic pillars.

“Particularly, the manufacturing and retail sectors can significantly benefit from automation and innovation to improve their productivity, product quality, and service offerings,” he added.

The MCCI is already taking practical steps in this direction, evidenced by the recent launch of two innovative tools by GS1 Mauritius Ltd in partnership with Mauritius Network Services Ltd (MNS): Docucheck and Track2Asset.

These solutions, built on blockchain technology, enhance the traceability and authenticity of documents and assets, showcasing the practical potential of advanced technologies within the local context.

In conclusion, as Mauritius seeks to redefine its economic landscape, the strategic integration of innovative technologies into its foundational sectors presents a vital opportunity for sustainable growth and development.

Source: l’Express