The Road Ahead: Reviewing Government Initiatives as Mauritius Prepares for Elections

As Mauritius gears up for its general election on November 10, 2024, the performance of Prime Minister Pravind Jugnauth’s government is under review. The ruling Militant Socialist Movement (MSM) aims to retain power amid a blend of economic challenges and successes, with many voters reflecting on the government’s initiatives during the past term.

Economic Diversification and Growth

One of the main highlights of Jugnauth’s government has been its efforts to deal  with the Covid 19 crisis in 2020/21 and the continued infrastructure developments such as the new Metro tramway and various road bypass initiatives.  This has helped to continue to diversify Mauritius’ economy from the past decades. Traditionally reliant on sugar, textiles, and tourism, the country has gradually shifted its focus to manufacturing and financial services. Manufacturing, in particular, has shown impressive growth, recording a 10.4% increase in 2022 and a further 12.9% rise in 2023 (Global Finance, October 2024). This surge has been essential in boosting exports, which have grown to $2.1 billion, with a government target of $3.2 billion annually (Global Finance, October 2024).

However, the financial services sector has seen more modest growth, registering only a 4.4% increase last year. Despite government efforts to position Mauritius as an international financial hub, challenges remain, prompting the need for recalibrated strategies (Global Finance, October 2024). Legal reforms, such as the establishment of a Financial Crime Commission in 2024, were implemented to improve financial integrity and attract foreign investment (Global Finance, October 2024). These reforms are expected to have long-term benefits for the economy but are still in their early stages.

Social and Economic Challenges

Despite some areas of economic progress, the Jugnauth government faces criticism for several social and economic issues. Unemployment remains at 6.1%, and income inequality continues to widen (Global Finance, October 2024). Moreover, the aging population has added financial strain, with pensioners constituting over 20% of the population.  The government doubled pension payments from 2019 to its latest 2024-2025 budget, raising monthly payments to $346 for those over 65 and $380 for those over 75 (Global Finance, October 2024). While this move was welcomed by retirees, it has raised concerns about the long-term sustainability of public finances, given the ageing population projections.

The public debt, which stands at 74.5% of GDP, also remains a pressing issue, despite a slight improvement from the previous year (Global Finance, October 2024). Many citizens are questioning whether the government has the resources to address future economic challenges, especially as it looks to push forward with energy transition plans that require significant financial investment.

There are also concerns that the government has potentially weakened the proper operation of separation of powers between the Legislative, the Executive and the Judiciary and their independence.

Public Sentiment and the Election Outlook

As the election approaches, the government’s handling of these issues is likely to be a key factor in the decision-making process for voters. Public opinion is divided, with some praising the government’s social efforts and others criticising its failure to really address social inequalities and rising living costs in the longer term. The opposition, led by the Labour Party and the Mauritian Militant Movement (MMM), is looking to capitalise on this dissatisfaction (Africa Centre for Strategic Studies, October 2024).

While the opposition has struggled with fragmentation, the upcoming election represents a critical test for the Jugnauth administration. The ability of the MSM government to communicate its achievements, particularly in manufacturing and legal reforms, will be essential as it seeks re-election. Additionally, the electorate will be watching closely to see whether the government can offer viable solutions for pressing social and economic issues, such as unemployment and public debt.

Conclusion

Mauritius stands at a pivotal point as it prepares for the November 2024 election. The Jugnauth government’s efforts to please various categories through social security benefits, coupled with its attempts to implement legal reforms, demonstrate a forward-looking approach to income distribution.

However, economic challenges such as rising debt and social inequalities remain concerns for voters. As the election approaches, the performance of the current administration will be under close scrutiny, and its ability to address these issues will likely determine the outcome of the vote.

Sources:

• Global Finance Magazine, « Mauritius at a Crossroads, » October 2024.
• Africa Center for Strategic Studies, « Mauritius: November 10 2024 Elections, » October 2024.