The Association of Mauritian Manufacturers (AMM) wants time to adapt to the government?s liberalisation policy. Its president, Patrick Rivalland, made it clear that, in the face of an ?exceptionally difficult economic situation?, local players should be given ?either the time or the necessary tools to enable them to face competition from imported products?.

The Trade minister, Rajesh Jeetah, replied that he perfectly agreed with the president?s views and announced that some measures were under way but he invited entrepreneurs to use all the resources already at their disposal. Liberalisation has led to major reduction in tariffs and local industrialists stressed their difficulties to adapt to this new environment.

The ?high labour costs, rigid labour legislation, high financing costs and more importantly the absence of economies of scale? are some problems that prevent local manufacturers from competing with products coming from China or other Asian countries, for instance. The AMM, however, pointed out that it ?is not asking for any favour from the authorities, but simply asking for a prerequisite to trade liberalisation?.

Among the most important measures to protect the country from unfair competition, the AMM president stressed on ?dumping, government subsidies to promote exports, substandard goods, child labour and non-tariff barriers?. The urgent and systematic application of the Metrology Act, the Food Act and the Dangerous Chemicals Act on imported goods ? just as it is the case for the local products ? has been one of the main requests made to the government. With a touch of humour, the AMM president recalled the story related last year at the general assembly by the minister on the difficulty to find a ?multi-plug? working properly. ?You will be very surprised by the quantity of substandard products being imported into this country.?

However, Minister Jeetah somehow reassured the association, as he gave the guarantee that the Competition Bill was in its final stage and would definitely be implemented this year. He also made it clear that his ministry was working with the Mauritius Standards Bureau to improve quality control on imported goods.

The AMM president also mentioned the need to ?bring a greater measure of flexibility? in labour markets. He hopes that the ?new labour legislation, satisfying all the socioeconomic partners, will be enacted at the earliest?.

Obviously, Patrick Rivalland?s mention of price control hit the bull?s eye. While he stressed the ?utmost importance that Mauritius frees itself from this price control mindset at the earliest and set up an independent competition institution to ensure that the local market operates fairly?, the minister flew off the handle.

Need to take more risks

Minister Jeetah made it clear that ?mark-up and price controls are only applied on some 20 items out of the 4,000 existing ones?. He acknowledged that there were some ?contentions between technicians of the ministry and associations of manufacturers? but he emphasised on the necessity of keeping such controls in the short and medium-term.

Although the minister agreed on the problems facing the sector, he expressed his optimism concerning the future. He expressed his belief that, with some efforts made by entrepreneurs themselves, the sector should be thriving in a few years. ?We can?t afford to wait; we have to take risks now,? he claimed. He was firm in his request to the private sector.

He further stated that the country benefited from human and financial resources that were underused by local players. ?There are brains sitting at the University of Mauritius and the Mauritius Research Council only waiting to be exploited.? Moreover, ?institutions are there to provide financial help but people often do not even know where to go and find some help?.

By taking more risks, manufacturers should also realise that the ?future of the sector is not in Mauritius?. The AMM is aware of the need to ?export more?. This is why they have started a close collaboration with Enterprise Mauritius to ?find a way to promote exports from our members?. They are organising a joint fair next July to ?display and promote products to both local consumers and some 100 foreign professionals from neighbouring countries and from all over the African continent?. Hopefully, this is just the beginning!