Structural Gaps and 15 % Energy Hikes Threaten Mauritius Tech Sector Viability

The newly re-elected President of the Outsourcing and Telecommunications Association of Mauritius (OTAM), Jenny Chan, has warned that the nation is falling behind technologically due to a critical lack of infrastructure suited for innovation.

Speaking following the association’s Annual General Meeting, Ms Chan highlighted a widening gap between Mauritius and global technological advancements, particularly in Artificial Intelligence (AI).

She cautioned that the country can no longer afford to remain sidelined as it faces “dramatic change” and fierce competition from emerging markets in Asia and Africa.

Slow Growth and Global Instability

The ICT-BPO sector reported slow progress during the first quarter of 2026.

Ms Chan attributed this stagnation to client hesitation fueled by global economic instability and the ongoing conflict in the Middle East.

“There is a lot of ‘wait-and-see’ and it is complicated,” Ms Chan stated, noting that Mauritius is struggling to maintain its attractiveness in the European and American markets.

Energy Crisis and Rising Costs

The sector is bracing for a projected 15% increase in electricity bills starting this May, a move expected to hit low-margin businesses like call centres particularly hard.

Because these firms often cannot pass costs on to clients without risking contract losses, some are being forced to explore more cost-competitive markets or shift toward higher-value-added processes.

Sustainability efforts remain hampered by structural issues:

• Green Energy Barriers: Most ICT firms rent their office space, making it difficult to participate in national green energy programmes.
• Targeted Investment: Only firms and data centres that own their buildings are currently able to consider independent green energy production.

A Call for Synergy

Ms Chan stressed that while the Mauritius Digital Promotion Authority is working to promote human capital and digital literacy, a “rapprochement” between the public and private sectors is essential.

The President concluded that in an environment of limited resources, only reinforced coordination between various authorities can address the industry’s major challenge: accessing the specific talent required to navigate the current technological shift.

Source: Defi Media