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?A public-private taskforce will hopefully enforce measures for local manufacturers?
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?A public-private taskforce will hopefully enforce measures for local manufacturers?
● What is the contribution of the manufacturing sector in the local economy?
We employ some 54,000 people, which represent 10.4% of the active population. We are the second biggest employer after the EPZ sector and our investment has been of about Rs 1.6 billion last year. We actually contribute about 12 % of the country?s Gross Domestic Product (GDP). It would also be important to note that the sector is a key income contributor to thousands more through indirect employment in advertising, engineering, training among others.
● Last year, you were talking about the association?s difficulties with imported products. What is the situation today?
There can be some differences in the laws governing imported products and the ones applied to locally manufactured goods. Local products are subject to health inspectors and are well-controlled for instance while there is a feeling that the authorities are more lenient towards imported products whose production might even not have been authorised in Mauritius. This creates a sort of unfair competition in our opinion? There is no anti-dumping legislation while we firmly believe that any further reduction in tariffs should go concomitantly with the implementation of an anti-dumping legislation. Dumping is not only done to the detriment of local manufacturers but also for the public at large because some foreign companies tend to put products that have almost reached expiry date on the market.
● What have been the other main difficulties of the sector?
Mauritius is a small country and can?t afford to have an economy of scale. We can?t be competitive with big producers like China, India or South Africa. While Mauritius is producing 100,000 units of an item, China would be manufacturing 10 million. Moreover, our labour force is more expensive than emerging countries. Export could be a way of opening up our production but it is not easy for small companies to find a market to export. The non-tariff barriers also make it difficult for a company to export.
?Our association is not asking for any favour from the authorities but is simply asking for what is according to us, a prerequisite to trade liberalisation."
● Is this part of the problem you mentioned at your general assembly about the association?s perception that this ?sector is one of the past? for the authorities?
The association has existed for 13 years and it?s been almost 13 years since we have made requests for anti-dumping legislation and for at least a level-playing field. This has remained unattended so far. We have the feeling that the authorities are now focusing on other sectors like tourism, IRS, ICT, etc?
● The minister of Trade, Rajesh Jeetah, was present. Did he attend to your requests?
We are reassured by the commitment taken by Rajesh Jeetah that a joint working group will be set up on a regular basis ? every month ? to tackle the concrete problems of local manufacturers and follow a plan of action to give them the required infrastructure to face trade liberalisation. This will be a platform where representatives of private and public sectors can solve problems in a pragmatic way. Our association is not asking for any favour from the authorities but is simply asking for what is according to us, a prerequisite to trade liberalisation. The Industrial Development Task Force will not only analyse the different problems and recommend solutions, but we hope it will also be mandated to ensure that the recommendations, where feasible, are enforced.
● You?ve been raising the issue of liberalisation for one year. You were then asking for more time to face the coming liberalisation?
Our association is not against liberalisation but we are also saying that local industries should first be given the means to do it. The priority for this year is to do a complete audit of the companies and see what problems they could be facing to enable them to face them.
● The competition bill should also be a way of helping the sector. Are you satisfied with it?
The request for the introduction of a competition bill was made by the private sector so we are definitely satisfied with its introduction. As soon as the competition commission will be set up and the guidelines clearly established, there will no longer be any price control. However, the anti-dumping legislation, which is part of the competition bill in most countries, is not part of ours in Mauritius?
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