He says he is aware of the difficulties the country will have to face in the coming months and asserts the government will take appropriate remedial decisions. Even when he is asked about eventual conflicts between ministers, he remains confident: “Each minister has his/her own way of doing things. But, overall, there is a consensus on the fact that the situation is tough and that the solution may require difficult decisions to be made.”

So, now that we all know that the best we can expect from two of our traditional sectors – sugar and textile - is that they will remain at a standstill, what can we hope for so that our economy remains viable? “The future of Mauritius lies in the framework of a diversified economy. This should now become reality. 2006 will be the year of a new economic architecture,” answered the minister of Finance.

So, 2006 should be the year when Mauritius repositions itself. Not only should we fight for a good compensation from the European Union and for a new boost to our tourism sector – with a new branding and a more aggressive marketing strategy – but we should also look for new avenues of development.

The government intends to engage in some new activities – or better develop existing ones – to make sure the country does not find itself in a situation where it has to rely on only two or three pillars. With this in mind, Rama Sithanen enumerated a number of sectors. He is positive that new services and diversified financial products will boost the growth rate; he also relies on Information and Communication technologies (ICT), the seafood hub and the emergence of a new sector, the land-based oceanic industry. The knowledge hub, medical tourism, medical research and the export of medicines are also among his projects. And he adds, “We are still working on the idea of making Mauritius become a duty-free paradise.”

<B>Reassure investors</B>

The minister of Finance made it clear that “production capacity should be increased to boost investment”. The IMF is clear on the need to attract more investors; structural and policy reforms also appear essential to restore economic stability. “Such an agenda will reassure international and domestic investors, improve the environment for more activities by the private sector and will give the bases to achieve higher growth rates and more employment opportunities.”

According to Rama Sithanen, “the fast track committee on investment has already met three times and has made great progress in terms of the investment climate. Within the next three months, our task of simplifying and modernising our framework to encourage investment will be completed.”

Moreover, he confirmed a recent meeting with members of the Board of Investment (BOI) concerning the “implementation of a promotion campaign in specific sectors abroad. We will hit the road in terms of promotion in Europe, India, the Middle East, Far East, South Africa and even the United States for financial services. We can become a centre and an investment platform for the whole region,” the minister of Finance added with confidence.