The Minister of Finance, Xavier Luc Duval, has initiated a new project today to promote the expansion of businesses in Africa. A Rs 500 million fund was launched to buy shares in companies which look forward to develop their businesses in Africa. The African Development Bank has anticipated that African consumer expenditures will undergo a twofold increase in the coming ten years, since the lifestyle has greatly been enhanced with an increase in the generation of jobs.
Xavier Duval aims to increase the fund up to Rs 2 billion, by having more shareholders investing in the project. Therefore, attracting important investors is currently of major concern.
No particular company has been mentioned yet, but retails, telecommunication and banking seem to the main expanding fields. In the last few years, Mauritius has been struggling to reduce its dependency on sectors like the sugar and textile industries and tourism, since too heavily relying on a limited number of sectors for economic growth could prove to be dangerous in the long run, specially if external factors could come into play and bring the country to its knees.
Diversifying the country’s main capital-generating hubs is one of the ways to counter the potential problems that are bound to come up with a limited economic growth.