SMEs lure Mauritian expats to come home

Small and medium enterprises (SMEs) look as  fertile grounds for Mauritian expats coming home. The Mauritian government, after all, has set up sound mechanisms for SMEs helpful to the Mauritian diaspora’s homecoming.

Enterprising migrants plotting for their return to the island can take some cues from the government’s 10-year SME Master Plan.  Launched in 2017, this plan has set in motion the cogs aimed at propelling SMEs’ annual growth by 5 to 8 per cent.  Overall, the aim is to boost the sector’s GDP contribution from 40 percent to 52 per cent by 2026.

By that year, the government hopes to increase SMEs value-added contribution to the economy from MUR175 billion to MUR388 billion. It also aims at boosting SME share in employment from 55 per cent to 54 per cent. The sector’s exports (products and services) are likewise projected to increase from under 3 per cent to 18 per cent.

Most promising SME areas

The SME areas that appear with the most potential for returning Mauritian expats include innovation-based and technology-intensive services. The 10-year master plan indicates that these areas remain largely underserved. The plan notes that the development potential of these services areas isn’t only huge. Its rosy prospect is also tied with the government’s vision for the country to have a knowledge-based economy.

The plan further suggests that entrepreneurs should contemplate on exporting substantive services in this SME area. It notes that the African market now requires the know-how of specialist experts to build new frameworks and systems for industries and businesses.

Start-up financing and more

Already, this potent SME niche has begun to attract plenty of entrepreneurs engaged in innovation-based and technology-intensive activities. A recent industry analysis showed that Port Louis and Plaines Wilhems in Mauritius are now the leading start-up hubs in Africa. The pair notably bested Nairobi, Johannesburg, Cape Town, Lagos, and Cairo in this ranking.

The Mauritian government has set up more than 37 development schemes available to SME ventures like the local startups. In access to financing, there are 12 windows that aspiring Mauritian entrepreneurs can look into.

The Mauritius Bank (MauBank), for one, offers an SME Financing Scheme. The bank requires no collaterals, but it applies floating charges. The Development Bank of Mauritius also provides allocations for SMEs at 0.5 per cent concessional rate per annum. The Stock Exchange of Mauritius, in addition, is setting up a new Venture Capital Market for start-ups and SMEs.

Significantly, Mauritian expats are also eligible for other government incentives complementary to setting up a business venture upon their return. Tax exemptions, for instance, are available in the Mauritian Diaspora Scheme that could help leverage their SME interest in Mauritius.

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