“We have five budgets to implement our program”

Dhaneshwar Damry, Junior Minister of Finance

“I know how long it takes to get a license from the FSC. I know how challenging it is to open a bank account. We are committed to changing that”

Junior Minister of Finance Dhaneshwar Damry has outlined his proposal for the financial sector to step into its next phase of growth, emphasizing four key areas: capital markets expansion, digital transformation, global business competitiveness, and talent development. Addressing industry stakeholders, he highlighted the urgent need to strengthen the bond market, particularly to meet the country’s $6.5 billion climate financing commitments by 2030. He also stressed the importance of embracing digital financial services, drawing inspiration from India’s fintech advancements. Regulatory inefficiencies, he noted, have cost Mauritius valuable international investments, reinforcing the need for streamlined processes to enhance competitiveness. Additionally, he advocated for targeted training programs and global partnerships to bridge the financial sector’s skills gap.

Speaking at the consultative workshop organized by the Ministry of Financial Services and Economic Planning, Dhaneshwar Damry, Junior Minister of Finance, laid out his vision for the sector’s future, emphasizing modernization, digitalization, and regulatory efficiency.

“If there is one thing I have learned from the Prime Minister, it is to challenge the status quo. Change is necessary, and it is our responsibility to drive it forward,” he stated.

Drawing from his prior experience in the private sector, where he worked in management and global business services, Minister Damry assured stakeholders that the government understands the concerns of the industry. He acknowledged the frustration caused by bureaucratic delays, particularly in licensing processes and banking operations. “I know how long it takes to get a license from the FSC. I know how challenging it is to open a bank account. We are committed to changing that,” he affirmed.

Key Growth Drivers for the Financial Services Industry

Minister Damry outlined four key areas that will shape the future of Mauritius’ financial sector:

1. Capital Markets Expansion

The Junior Minister identified the capital markets as an underutilized area with significant growth potential. He pointed out that Mauritius must develop its bond market, particularly to address climate financing needs. “The government needs to raise $6.5 billion to meet our climate commitments by 2030. So far, we have raised only $400 million. This is where the industry can step in and be more creative,” he explained, advocating for greater private-sector participation in sustainable finance.

2. Digitalization as a Cornerstone of Development

Minister Damry emphasized the necessity of transitioning Mauritius into a fully digital economy, drawing inspiration from India’s advancements in fintech. “In India, even street vendors accept digital payments. This is the level we should aspire to. The financial sector must lead this transformation by embracing digital financial services,” he asserted. He also called for a seamless digital ecosystem that integrates payments, regulatory compliance, and customer onboarding.

3. Global Business Expansion and Regulatory Efficiency

Addressing the global business sector, Minister Damry shared anecdotes illustrating how slow regulatory processes have cost Mauritius major international investments. He recounted a case where a European digital bank considered outsourcing client onboarding services to either Mauritius or Singapore. “Because of regulatory delays, Singapore won the contract, creating jobs that could have been in Mauritius,” he revealed, highlighting the urgent need to streamline licensing and approval processes.

“If we want to integrate better into the Indian market, why not adopt NISM certifications for our professionals?”

He further compared Mauritius to Malta, which has successfully expanded its financial services sector by licensing nearly 400 payment institutions. “In Mauritius, we have less than 10. There’s confusion over whether companies should apply for a PSP license with the central bank or a PIS license from the FSC. We must address these inefficiencies to remain competitive,” he urged.

4. Talent Development and International Partnerships

Acknowledging the skills gap within the financial sector, Minister Damry called for targeted training programs and international partnerships to enhance Mauritius’ workforce capabilities. He proposed closer collaboration with institutions such as the National Institute of Securities Markets (NISM) in India to certify Mauritian professionals in fund management and investment strategies. “If we want to integrate better into the Indian market, why not adopt NISM certifications for our professionals?” he suggested.

Minister Damry assured stakeholders that the government is dedicated to ensuring effective policymaking and avoiding “policy paralysis,” and highlighted the establishment of a high-powered committee tasked with implementing the government’s financial sector agenda. “You voted for change, and we will deliver change. Our commitment is to good governance, a business-friendly environment, and job creation. We will simplify processes, listen to the industry, and drive meaningful reforms,” he stated.

Recognizing the crucial role of international partnerships, he advocated for Mauritius to strengthen its position as a financial gateway to Africa. “Africa is rapidly digitalizing its economy. How can Mauritius position itself as a hub for digital financial services on the continent? This is the question we need to answer,” he remarked, calling for a more proactive engagement with African markets.

“We have five budgets to implement our program, and we will report back to the nation. This government is here to serve the industry, the nation, and every stakeholder invested in the success of our financial services sector”, the Junior Minister of Finance concluded.