Exploring the financial sector of the Mauritian economy for Africa Connected, leading South African journalist, Nikiwe Bikitsha talks to the CEO of Standard Bank Mauritius.
A key contributor to the Mauritian economy, financial services currently accounts for up to 12% of the country’s GDP. To put that in context, it currently equals the tourism sector. As such, Mauritius has established itself as a major financial hub in its region with one of the highest GDPs in Africa.
While consumer market and the size of the population is a key input, with that said, our size also give us agility.— Lakshman Bheenick, Chief Executive at Standard Bank Mauritius
With a track record of political stability, the country’s inflation has remained low at less than 1% over the past 2 years with a slight pick-up that has paved the way for a 2% interest rate.
Taking a look at policy making, over the decades, the country has built a good reputation for moving efficient in terms of innovation and implementation. This means that the monetary policy in its current state promotes growth.
I would say, the monetary policy has served the purpose of the country’s economy for recent years.— Lakshman Bheenick, Chief Executive at Standard Bank Mauritius
The Mauritian government has been able to fund itself with low rates for its expenditure and continues to steer clear of the global trend of negative interest rates.
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