BEST PROSPECTS FOR U.S. EXPORTERS
In general, the best prospects for U.S. exports to Mauritius are in capital goods, food products (including grains and seeds), and services. Of particular note are:
PUBLIC INFRASTRUCTURE: In its 2008-09 Budget, the Finance Minister announced massive investment to improve infrastructure and remove impediments to economic growth as it pertains to the sea port, airport, energy, roads, water and sanitation. He warns that public infrastructure will need an estimated $4.6 billion investment boost over the next decade. Between January 2009 and December 2010, the Minister estimates $120 million will be spent on public infrastructure projects, including a ring road and a harbor bridge in Port Louis to ease traffic congestion as well as a new passenger terminal at the airport. Regarding the port, the Mauritius Ports Authority will invest $40 million in 2009 in (i) new port equipment to address the increase in container traffic (ii) 3 tug boats (iii) construction of a Cruise Terminal, and (iv) a flood wall at the Container Terminal. Likewise, the Cargo Handling Corporation, with the assistance of the World Bank, will be looking for a strategic partner to provide expertise and increase efficiency.
The Minister also announced the construction of a new city in Highlands area, located in the center of the island, which will require an investment of $3.7 billion. A financial advisor is currently validating the financial feasibility of the project and preparing bidding documents for the selection of a master developer to implement the project. In addition, construction on the Chinese Tianli Economic Zone, a new trading city near Port Louis, is expected to start before mid-2009. This $740 million project supported by the Chinese government will involve 40,000 persons and is being touted as a gateway for companies to invest in and trade with Africa.
RENEWABLE ENERGY: The 2008-09 Budget provided for a $40 million Maurice Ile Durable (Sustainable Island) Fund to support measures to increase reliance on renewable energy, protect the environment through recycling, and encourage more efficient use of energy. Replacement of imported fossil fuel by local renewable sources will involve the production of electricity through (i) two wind farms (ii) two new hydro units (iii) use of cold sea water for air conditioning by the upcoming Land Based Oceanic Industries Park, (iv) burning of solid waste and (v) development of the Mare Chicose Landfill Gas project. The Government of Mauritius (GOM) recently approved a coal power project to be undertaken by a Malaysian firm and is expected to support a waste-to–energy power plant proposed by a joint venture project between a U.S. and a Mauritian firm.
FOOD PRODUCTS/GRAINS: Mauritius has always been a net food importing country. Food imports currently account for USD 692 million, equivalent to 18 percent of Mauritius’ total import bill. The major items imported include rice, wheat, pulses, edible oil, meat, and dairy products, which represent at least 70 percent of all food imports. Mauritius also imports 100,000 metric tons of corn and 40,000 metric tons of soybeans annually as raw materials for its livestock feed factories. The total grain requirement valued at USD 50 million is traditionally imported from Argentina. Mauritius depends on Australia for most of the 1,500 metric tons of potato seeds it imports annually. In April, the U.S. Grain Council and the U.S. Potato Board will participate in a market development workshop with Mauritian importers and farmers, organized by the Embassy.
Mauritius traditionally imports about 140,000 metric tons of wheat annually from France and Australia. In 2007-08, due to a poor crop in its traditional markets, Mauritius imported about 50,000 metric tons of wheat from the U.S. for the first time. The satisfaction with the U.S. wheat and the relationship between U.S. Wheat Associates and the local milling company has opened the door for more U.S. wheat to be sold in the future.
Mauritius offers U.S. exporters opportunities to supply both bulk commodities and consumer-oriented food products. During a recent trip of the USDA Agricultural Counselor to Mauritius, the Mauritian Ministry of Agro-Industry, Food Production and Security expressed interest in U.S. animal genetics and seed potatoes. One private fruit trader is currently importing U.S. table grapes and is also interested in U.S. apples. Likewise, there may be opportunities for U.S. beef to supply the over 100 hotels and numerous luxury resorts with high-value cuts and the remaining domestic market with less expensive cuts and variety meats.
AGRICULTURAL MACHINERY, SUPPLIES & SERVICES: The Budget provides $32 million for a Food Security Fund to finance the government’s food self-sufficiency strategy. The Food Security Strategy Plan (2009-2011) provides for the mobilization of an additional 1,700 acres of land for food crop production (potatoes, corn, pulses, onions, vegetables and fruits) and about 300 acres for milk and meat production. To implement the above strategy, equipment and services such as irrigation, de-rocking and mechanization equipment, pesticides, fertilizers, seeds, and animal genetics are required. In addition, in January 2009, the Ministry of Agro-Industry issued an international tender for consultancy services for the preparation of an e-Agricultural Action Plan to enhance the operations and service delivery of the Ministry through the use of appropriate IT solutions.
REAL ESTATE/HOTEL INDUSTRY: Three years ago the GOM created an Integrated Resort Scheme (IRS) to attract high net worth foreigners that desire to own residential property in Mauritius. As a result, 20 IRS projects involving hundreds of luxury villas equipped with golf courses, commercial centers and other amenities have been or are being implemented. The majority of these units have already been sold, boosting the FDI into Mauritius. Nine other projects are expected to start in 2009. These projects represent opportunities for firms involved with architectural designs, interior decoration, construction materials, equipment and services.
Mauritius also has more than 100 hotels and last year received close to one million tourists. Given this, business opportunities abound for suppliers of hotel and restaurant equipment and supplies as well as hotel management services. Flagship brands such as Starwood, Hilton, Four Seasons, Oberoi, Taj, Sun Resorts, and Accor are already in Mauritius.
COLD CHAIN: Moving fresh product, including fruits, vegetables, dairy, meat, poultry, and fish from the farm and ocean to the plate of consumers in as high-quality condition as possible is increasingly recognized in Mauritius as important from both the standpoint of customer satisfaction and consumer safety. As incomes rise, more and more fresh or frozen products, which require a continuous stable temperature from their point of production to the consumer’s plate, are arriving in the market. As a result, Mauritian companies are buying Cold Chain products in increasing quantities, including cold storage equipment, refrigerated trucks and containers, and refrigerated display cases.
The majority of these cold chain products in Mauritius are currently being imported from France, England, and Italy. The Embassy organized a Cold Chain workshop in March 2008 with the collaboration of two U.S. experts. During their visit to Mauritius, several companies expressed interest in receiving information and in some cases quotes on U.S. equipment, particularly for new refrigeration systems, evaporators, air doors, and insulated panels. The U.S experts also found great interest in establishing Cold Chain training programs in Mauritius. All the local companies the experts visited had a critical shortage of trained personnel and dated technology, which seriously inhibit their operations.
