Managing Director (BOI)

1. Mauritius is currently going through a phase of transformation from a middle-income to a high-income country. How do you think this moment has to be managed in order to keep growing?

We have come a long way from a mono-agricultural economy to a diversified global economy stayed on various pillars, while maintaining our established sectors of growth. We have developed our textile, tourism and services industry, our financial services, ICT and BPO sectors as well as an agro industry. Now, the Government has launched the vision for exploring and exploiting the potential of the ocean economy. Owing to the far-reaching implications of the initiative, it is considered a powerful game changer that will impact and boost the economy.

To achieve our transition to a high-income economy, we need to consolidate this broad base. Also, we need to ensure that the manufacturing base is stabilized through increased private sector investment, while ensuring the competitiveness of our labor market.

Above all, we need to focus on the fundamental enablers for growth, namely education, infrastructure and innovation.

With the extension of the facilities of the seaport, the creation of a new international airport, improvements in the road network and the acquisition of modern telecommunication means, our human capital will be more effective and competitive if we keep investing in their training at all levels. A rational combination of all those factors will contribute to position Mauritius as a very competitive regional platform.

We are a country that has managed to maintain full market access. We are part of a strong and broad network secured through trade agreements with the EU, the US and Africa. This allows us to project ourselves with a broader market access. Now with the promotion and development of an ocean economy, Mauritius should evolve to be a services platform to consolidate key sectors that contribute to the economic development of the country. More importantly, we also want to create high-income jobs in new sectors of sea-related business.


2. The plan of the government is to transform Mauritius into a business hub; taking advantage of the role the country plays as a bridge to enter the African continent. Why does it make sense for an investor to enter the African market via Mauritius?

Mauritius is well positioned. We are strategically located between Asia and Africa. When you consider the geographic position of Mauritius it makes sense for investors to use Mauritius as a base of their operations.

Sound economic fundamentals, political stability, a well-regulated jurisdiction, a legal system combining English and French laws, and a well-trained and disciplined work force will provide any investor with a competitive platform to access a potential market of some 600 million consumers when you are an active player in the Common Market for Eastern and Southern Africa (COMESA) and the South African Development Community (SADC).

Mauritius is thus quite an interesting proposition for multinational companies. As the capital market is available, to raise funds for projects in Africa, investors can elect to work with any of the 21 banks operating in Mauritius. These are some of the reasons investors have given to support the attractiveness of Mauritius and to justify their investment in some of the emerging markets.
 

Investors do not look at Mauritius for the local market. It is too small. They are rather interested to use Mauritius as a platform because we have managed to get market access in countries like Turkey or Pakistan. There is an active effort from the Government to ensure we have market access. Furthermore, with regard to human capital, we have the highest number of accountants and lawyers per capita in the world. This capacity helps to give confidence to the investors.


3. Mauritius's development expectations have been overcome in different areas. The country has achieved great stability and it has become an active player on the international scenario. What do you think is the key of this success?

Our success can be partly attributed to the country’s capacity to always unearth opportunities in challenges, to take on and overcome these challenges, making sure we face them squarely and with optimism. Mauritius does not have oil or gas, as yet. However, every ten years we have been able to double the GPD per capita by creating opportunities out of formidable challenges that loomed on the horizon.

In 2002 we were connected to the information highway by the fiber optic cable. We seized this instrument as a strategic tool to develop the ICT sector which today employees more than 19,200 people and contributes 6.8% to our GDP. As an island State, Mauritius has been able to address issues promptly and elaborate road maps to implement result-oriented strategies.


4. The country's strategy of growth is to capitalize an economic diversification. Which would be the sector to be considered a priority on the country's development agenda?

Mauritius works on the consolidation of all existing economic sectors. All along we have seen within these sectors a capacity for transformation and growth towards higher value-added activities. For example, in the sugar cane cluster, formerly the cane industry, we are today producing refined sugar, we are generating renewable energy and we are producing ethanol. This is a vivid case of how we use whatever is available and optimize all resources.
 

In the ICT sector we started with low-end activities with the first call centers. Now we are going for greater valued-added into the space of social media. These are the trends which we see and in which we are focusing our efforts. All sectors are and remain important. We reinforce the traditional ones while developing new ones. In line with the Africa strategy we already have 70 Mauritian companies operating in a number of States in the continent. We are promoting Africa and encouraging more companies to seize opportunities to penetrate the continent, to increase their presence and have prominence across the whole of Africa.


5. The Board of Investment of Mauritius aims to increase the country's competitiveness and generate a positive business environment. What has been BOI’s impact in the country since it started operating?

BOI was established in 2000. It's the national apex promotion and facilitation agency. It is at the very core of economic activities in Mauritius. It is the institution that facilitates business and acts as the interface between the public and the private sector, both local and international. We have within our mandate the authority and duty to give professional support to all sectors to make sure they remain competitive. The mandate has been extended and it now comprises the Africa strategy. We have evolved into a key institution which promotes the country’s development. This is why we are present everywhere and this constitutes one of our biggest challenges.

We operate as clusters which oversee different regions. We promote Mauritius first because we were initially known as a tourism destination. Now we are selling Mauritius as business destination. There are a number of initiatives which we have launched in various markets. We encourage people to network through our social media platform but, more importantly, we are active on the network which we have developed with regional investment promotion agencies. We have also initiated actions to increase our visibility when we organize yearly conferences in Mauritius and abroad. We invite international experts and investors to attend, and our message is very simple: if you want to invest in Africa, Mauritius is your best platform for that.


6. In 2013, global Foreign Direct Investment inflows rose by 11% to reach about USD 1.46 trillion. What are your strategies, as Managing Director of the BOI, to maintain and even increase this indicator?

The figure mentioned covers global investment. In Mauritius we have an average of USD 350 million in terms of foreign direct investment. What we want is to make sure that we receive greater flows of FDI in various sectors where we need more economic activity; this will include the ocean economy and the new emerging sectors. And we will  encourage further investment in the growth sectors, those that are generating employment, that are able to provide transfer of  technology for our people and the sectors that will also draw more capital to Mauritius.

A number of companies are establishing their headquarters in Mauritius. By doing so, they are investing in property development and then they start doing business. We want to consolidate this process and promote the whole spectrum of economic activities present in the country.




7.  BOI is the first point of contact for investors exploring business opportunities in Mauritius and the Region. What is the main challenge you face in this role of intermediary and how do you overcome it?

The real challenge is about educating our prospective investors. Making sure people have relevant information about the country and the possibilities it offers. The market is very aggressive; all countries are now looking for FDI. Therefore, it becomes very important for our strategies to be focused; we must refine them and be smart as to how we approach investors. There are so many places offering generous incentives for investment. The challenge for us is how to make Mauritius grow with regard to its competitiveness so that our value proposition represents a real advantage. We are waging an unending battle focusing on the refinement of our strategies.


8. In the first edition of your 2014 newsletter series, you talk about the importance of attracting new global players. Which are the countries from which you would like to start attracting investment?

We have started to look at China, because that's where the economic power has shifted and it is important for us to position ourselves. In India we already have a presence; we are looking at the Middle East as well as other emerging markets. At the same time we need to consolidate our traditional markets, such as Europe and South Africa. We've seen some interest from Australia. So we are starting to work on this new continent too.


9. One of the government's initiatives and a Prime Minister's priority is to develop the ocean economy. What are your strategies, as Managing Director of BOI, to contribute to this specific project?

We work closely with the Prime Minister's office by organizing and facilitating workshops, like the one we had in July of 2013. We collaborated for the organisation of the National Dialogue on the Ocean Economy. From that first event, there are a number of technical committees that have been set up. We have been working closely with them to achieve goals and meet deadlines according to expectations. We are proud to be active players, contributing to the creation of the Road Map of the Ocean Economy, a strategic document that new generations will benefit from.


10. You have spent several years promoting and facilitating investment across sectors from different positions. Looking back at all your years of experience, what do you feel more proud of?

I feel proud when I look at young people going to work, gaining experience and holding leading positions in companies we have attracted to Mauritius. I feel proud that through BOI’s actions we've been able to make sure that people are getting jobs. I feel proud about the results of our national social programs, namely the reduction of poverty.

We are contributing in our own way to achieve the vision of the Mauritian government for the modernization of Mauritius. Making sure that the nation as a whole benefits from our actions and new industries are created. All this gives me a confirmation that the country is going forward. There is a sense of pride to be part of this economic progress.


11. To conclude this interview Mr. Poonoosamy, our readers are more interested on the leaders we interview than on the company or institution itself. In that context, what message would you like to send to our worldwide readers of HARVARD BUSINESS REVIEW?

Mauritius is a country which has come a long way and, that, against unimaginable odds; it has proved its mettle. We are aspiring to become a high-income economy and we all have is just the determination and the resolve to achieve it.

Mauritius is a great place to be. Mauritius is a great place to work and a great place to live. I invite CEOs and top executives to consider Mauritius as the place to establish themselves if they are expanding their business into Africa.