Regional Centre of Excellence

Upholding Integrity, Sustainability, and Transparency in the Financial System

In the coming years, we are committed to bring back the debt level below 60%.

In his keynote address at the Regional Centre of Excellence (RCE) Workshop on “Integrity, Sustainability, and Transparency in the Financial System,” Dr. Renganaden Padayachy, Mauritius’ Minister of Finance, Economic Planning and Development, underscored the fundamental importance of trust in fostering economic prosperity. Against the backdrop of esteemed delegates, including international dignitaries, policymakers, and financial experts, Dr. Padayachy articulated a vision for a financial ecosystem built upon the principles of integrity, sustainability and transparency.

The Minister acknowledged the pivotal role played by the RCE, in collaboration with the Organization for Economic Co-operation and Development (OECD), in fostering dialogue and knowledge exchange across the African region. Reflecting on the RCE’s substantial contributions since its inception in 2019, he highlighted the diverse range of workshops convened and the significant number of participants trained, underscoring the commitment to regional socio-economic development.

Emphasizing the symbiotic relationship between economic growth and ethical conduct, Dr. Padayachy outlined Mauritius’ impressive economic achievements in recent years. Citing robust GDP growth rates and declining unemployment figures, he attributed these successes to a concerted effort to combat corruption, promote sustainable finance, and cultivate responsible business practices.

“Prosperity is for sure very much linked to economic growth, and this growth will only be supported if we commit to further combat corruption, champion sustainable finance and promote responsible business conduct. In Mauritius, this strategy, which has been ours over the recent years, has brought tremendous results. The GDP growth, supported by record-high levels of investments and exports, is proven to be robust and consistent. Mauritius has indeed registered an economic growth of 8.9% in 2022, 7.1% in 2023, and is projecting a 6.5% additional increase in 2024. Going forward, our aim is to sustain a 5% GDP growth over the medium term. Thanks to the real dynamism of the economy, unemployment has recently fallen to 6.3%, and is expected to reach below 6% in the short term. The same trend can be observed with respect to fiscal consolidation. After a peak of 91.9% in 2021, the ratio of public debt to GDP has rapidly fallen to 79% in September 2023. This is already below the IMF debt anchor estimated at 80%. In the coming years, we are committed to bring back the debt level below 60%,” the Minister stated.

Central to Mauritius’ economic transformation has been a steadfast commitment to strengthening institutional governance and regulatory frameworks. Dr. Padayachy cited notable improvements in corruption perception indexes and economic freedom scores as evidence of Mauritius’ progress in fostering an environment conducive to trust and confidence among market participants.

Addressing the imperative of combating financial crime, the Minister reiterated the government’s unwavering commitment to anti-money laundering and counter-terrorism financing reforms. He emphasized the importance of sustained efforts in maintaining compliance with international standards, which are essential for bolstering investor confidence and safeguarding the country’s reputation.

In light of the escalating climate crisis, Dr. Padayachy underscored the urgency of transitioning to sustainable finance practices. He highlighted Mauritius’ ambitious plans, including the launch of the Sustainable Finance Framework and the forthcoming issuance of the country’s inaugural ESG sovereign bond, as concrete steps towards aligning financial activities with environmental and social objectives.

Mauritius needs an amount of USD 6.5 billion by 2030 to finance its Climate agenda, both in terms of mitigation and adaptation

“The recent cyclone Belal that our country has experienced just a week ago is another concrete reminder of what climate change is about. Mauritius needs an amount of USD 6.5 billion by 2030 to finance its Climate agenda, both in terms of mitigation and adaptation. Against this background of transitioning to the realm of sustainable finance, the global landscape is shifting towards environmentally conscious practices. In recent years, we have embarked on a sustainable finance journey, reflecting a collective commitment to responsible and ethical financial practices. As a result, the Global Sustainable Investment Alliance investment review 2022 reveals a 20 per cent increase in sustainable investments globally, excluding the US data. While we examine the trends and developments shaping this landscape, we must recognise the pivotal role played by policymakers, financial institutions and responsible investors in steering us towards a more sustainable and inclusive economic trajectory. On this front, the Government of Mauritius is actively developing policies and incentives to promote green and inclusive finance. A few months ago, on 1^st September 2023, we launched the Mauritius Sustainable Finance Framework to allow the issuance in the near future of our very first ESG sovereign bond. In line with the Mauritius Vision 2030, the Sustainable Finance Framework details the process of issuance and reporting of Green, Social, Sustainable, Thematic and Sustainability-Linked Financing instruments,” highlighted the Minister of Finance.

Furthermore, Dr. Padayachy lauded Mauritius’ adoption of the Equator Principles and the implementation of mandatory Corporate Social Responsibility (CSR) initiatives, illustrating the country’s commitment to responsible business conduct. He also acknowledged ongoing collaboration with the OECD to enhance corporate governance standards, further solidifying Mauritius’ reputation as a transparent and reliable financial hub.

In conclusion, the Minister of Finance emphasized the transformative potential of upholding integrity, sustainability, and transparency in the financial system. He underscored the importance of collective action, involving financial institutions, regulatory bodies, and the government, in fostering an environment conducive to inclusive growth and societal well-being.