With African banks mired in bad debt and swamped by sluggish economies, Mauritius is thriving.
MCB Group and SBM Holdings, saw an increase in profits in 2016 with substantial growth anticipated for this year. As two of the largest banks in Mauritius both own large and valuable stock portfolios.
Financially speaking, Mauritius is able to keep its head above water in treacherous economic times. This is a result of an ever-growing economy; and it is this factor which prompted The World Bank to declare Mauritius as “the easiest place to do business”. The Mauritian economy is expected to grow by 4%, as compared to the gloomy International Monetary Fund’s forecast of 2.6%. Additionally, the government is anticipating that the foreign direct investment will increase to around 21% for 2017. Despite the fact the Mauritian Rupee weakened against the US Dollar, it picked up momentum by the middle of the second quarter in 2017.
Robert Besseling, Exx Africa Johannesburg Director believes that the Mauritian banking sector is robust in terms of its capital adequacy ratios, and furthermore has a relatively low non-performing loan ratio, with supportive profitability. Despite its smaller size in comparison to it African brothers, Mauritius has shown to have relative economic stability and favourable business policies which are key factors in attracting investment. These factors become even more compelling when compared to other African giants like Nigeria who have suffered the blow of the dollar shortage and falling oil prices. African markets have been historically volatile; however Mauritius shows promise and despite the obstacles, continues to compel foreign investors.
