IMF Recommends 3 Key Reforms for Mauritius’ Economic Revival

The Mauritian government, under the stewardship of Prime Minister Navin Ramgoolam, has pledged its unwavering commitment to an economic recovery, responding to the urgent recommendations put forth by the International Monetary Fund (IMF) and the World Bank. This declaration came during a parliamentary session on Tuesday, 6th May, when Ramgoolam addressed a query from Grand-Baie and Poudre-d’Or MP, Ram Etwareea.

Meetings in Washington

The Prime Minister revealed that Mauritius was represented at the Spring Meetings of the IMF and World Bank, held in Washington, D.C., from 21st to 26th April 2025.

The delegation was led by Rama Sithanen, the Governor of the Bank of Mauritius, who served as the acting governor for Mauritius at the IMF Board of Governors.

This participation followed a crucial Article IV consultation mission conducted by the IMF just days prior to the meetings in Washington.

The Road to Structural Reform

Ramgoolam conveyed that the IMF had expressed profound concerns regarding the economic and fiscal situation bequeathed by the previous administration.

He underscored the pressing need for a fiscal consolidation programme and a robust enhancement of the monetary policy framework—two critical components deemed essential for restoring the nation’s financial stability.

The discussions further illuminated the imperative for structural reforms aimed at bolstering external competitiveness, fostering private sector-led growth, and enhancing the supply of skilled labour.

“The IMF has commended our commitment and the efforts made towards a credible medium-term recovery plan,” the Prime Minister asserted before the members of the National Assembly.

Moreover, Ramgoolam noted that the World Bank echoed the IMF’s assessments, recommending a series of measures to support economic revitalisation in a context deemed “precarious,” a legacy of the previous administration.

The call for action is clear: the time for reform is now, as Mauritius stands at a crossroads, grappling with the weight of its economic future.

Source: Defi Media