Jyoti Jeetun: “We Will Support Those Struggling to Work Until 65”

Mauritius’s Finance and Planning Minister, Jyoti Jeetun, addressed the country’s latest budget, highlighting key measures amid widespread public criticism. The most controversial change is raising the retirement age from 60 to 65, a decision that has sparked protests but is justified by the government as necessary due to economic pressures.

Jeetun spoke at the EY & CMS Prism Budget Focus event held on the 11th June. She stated that “very harsh measures have been taken,” acknowledging the public’s strong backlash.

“Maybe we could have communicated better,” she said. Still, she emphasized that the country’s financial situation left no alternative.

“We had to press the Reset Button because Moody’s is watchful,” she explained, stressing that continued high levels of debt were unsustainable.

The minister recognized that the reform has social impacts. She suggested that support measures are needed for workers who cannot or will not work until 65.

She noted that many already do, and clarified that confusion between the retirement age and pension eligibility contributes to misunderstandings.

Jeetun stressed that these reforms are part of a long-term vision.

“We cannot have a short-term view,” she said, adding that the budget aims to “repair the broken foundations” with major structural reforms ahead.

Regarding the public sector, she criticized bureaucratic stagnation, saying, “The civil service still operates as it did 20 or 30 years ago.

Nothing has changed, and it’s difficult when officials reply, ‘We’re not in the private sector.’ Attitudes must change.”

She also highlighted the limitations of Mauritius’s current consumption-based economic model. She announced the development of a 25-year plan, “Vision 2050,” expected to be ready by March 2026, along with a ten-year development plan.

On financial services, Jeetun said the country is not yet prepared for more advanced products but remains committed to progressing the sector with practical solutions, moving beyond slogans.

In energy, she sounded an urgent warning:

“We have only six months before the summer to improve power supply. Many projects are ready, but there’s no electricity to start them.”

Addressing the business community, Jeetun reassured: “We will help, facilitate, and promote enterprises.”

She closed with an optimistic message, urging unity: “We will get this country out of this mess, and we need the people’s support. Solidarity is essential for change.”

Reactions from Business Leaders

During the panel at the Budget Focus event, several business leaders shared their views. Patrice Robert, Executive Director of IBL, stressed the importance of rebuilding trust.

“The key is in how well we implement the measures,” he said.

He also emphasized the need for a clear export strategy with targeted incentives, stating:

“We need to reinvent this industry. To attract investors in manufacturing, we need a mix of incentives.”

He added that regional integration, especially with East Africa, is crucial for growth.

Rubina Toorawa Taujoo, head of Apex Group in Mauritius, praised the government’s cautious approach, saying it made tough decisions to safeguard the country’s stability.

Afar Ebrahim, from Kick Advisory Services, acknowledged that the budget reflects expected change.

However, he questioned whether it would attract enough foreign investment, citing new taxes on high-net-worth individuals as a potential deterrent.

He also pointed out the country’s limited competitive edge compared to markets like India and Kenya, and expressed concern about the tourism sector’s decline, noting a drop in service quality and competitiveness.

Economist Manisha Dookhony, president of Africa Legal Support Facility, called the budget “very courageous.”

She welcomed the shift from a consumption-driven economy to one focused on investment, emphasizing that while difficult, the long-term benefits will be worth it.

She urged policymakers to address structural imbalances and consider the budget in conjunction with the “State of the Economy” report to effectively tackle Mauritius’s triple deficits.

Source: Le Mauricien