Formulating an Africa trade and investment strategy for Mauritius

Reference: PX/MUS/0703
Location: Mauritius
Duration: 105 person days over 7 months
Closing Date: 15 Feb 2013

Project Background

The Government of Mauritius, through the Ministry of Foreign Affairs, requested the Commonwealth Secretariat for assistance to a) develop a policy and strategy to refocus the country's trade and investment towards Africa b) assess the competitiveness of the country's International Financial Centre (MIFC) and propose an entry strategy for Africa. The Commonwealth Secretariat’s Special Advisory Services Division (SASD) invites bids to provide the required technical assistance.

Mauritius continues to perform well on many economic and trade indicators. After declining for 2 consecutive years, the country is now in the top 20 of the latest World Bank Doing Business Report. The country is ranked among the top ten economies in both the Wall Street Journal’s Heritage Foundation and the Fraser Institute indices. Together with South Africa, Mauritius is leading Sub Saharan Africa in the World Economic Forum’s Global Competitiveness Index of 2011. Nonetheless, the EU accounts for more than 60 per cent of Mauritian exports, 75 per cent of tourism revenues and substantial Foreign Direct Investment (FDI). In the financial sector, Mauritius has become a major source of FDI in India. 

This level of dependence points to an urgent need for the country to diversify her trade and investment, particularly in light of the economic slowdown in the EU. At the same time, the profile of Africa as a strong trading partner is growing. This is due to the consistent GDP growth rates fuelled by increased FDI in extractive industries, infrastructure and services; rising purchasing power and deeper regional integration. Mauritian merchandise exports to the African continent expanded by about 11 per cent annually during the period 2005-2011 demonstrating the potential for stronger trade and investment links.

Scope of work

The project will assist the Government of Mauritius to develop a framework to proactively engage Africa for greater trade and investment. The overall goal of the Project is to strengthen Mauritius’ resilience by improving competitiveness with the objective of increasing the country’s trade and investment in Africa. The outputs are:

• A “look Africa” policy
• An “Africa hub strategy”
• A marketing plan for the MIFC.

The project foresees a coherent policy to guide the country’s trade and investment efforts in Africa; a vibrant private sector taking advantage of opportunities and institutions (including diplomatic missions) equipped to provide the necessary support. Through the definition of the “Look Africa Policy” and the implementation of the “Global Africa Hub strategy”, Mauritius has the ambition to become an effective and vibrant gateway to Africa, using its strategic location, network of bilateral, regional and multilateral agreements on trade and investment, preferential market access, and its modern business-friendly environment as a platform.

The project will have 2 inter-related components:

Component 1: Africa policy and strategy

• Analyse the recent economic performance and patterns of trade, investment and business activity in Mauritius to:

• assess key trends and implications
• identify the critical domestic and external factors affecting future growth
• identify the key drivers of competitiveness

• Examine the country's Regional and Bilateral Trade Agreements (RTAs and BTAs); Bilateral Investment Treaties (BIT) with Africa and outline key opportunities for trade (goods and services) and investment. This should encompass, inter alia, COMESA (Common Market for Eastern and Southern Africa) and SADC (Southern African Development Community) Free Trade Areas, the Africa Growth and Opportunity Act (AGOA) and Economic Partnership Agreements (EPA).
• Assess the country’s performance in the regional trade agreements; bilateral investment treaties; investment protection and promotion agreements; double taxation agreements and memoranda of understanding that the Board of Investment has signed with investment promotion agencies in Africa with regard to:

• Net benefits
• Status of Mauritius’ and partners’ implementation of key commitments aimed at enhancing trade and investment in the region.

• Assess the extent to which the current regional integration strategies reflect the country's aspirations to become a high income country. In this regard:

• Identify the constraints hindering realisation of the potential that an emerging Africa can provide; and,
• Make recommendations on the measures required to overcome them.

• Make a comparative analysis of similar initiatives undertaken by a small state in the recent past to determine whether the approach is appropriate for Mauritius and draw out key lessons.
• Examine trade and investment performance in Africa and future growth patterns to:

• identify strategic partners for Mauritius, indicating the recommended positioning (such as resource, markets, efficiency seeking or other strategic motives) in the context of related activity of key foreign players
• Recommend priority sectors for export
• Prepare a strategic plan showing export targets, market entry and positioning strategies, short medium and long term actions, and resource requirements
• Make recommendations on implementation arrangements, including mechanisms for co-ordination, monitoring and evaluation

• Review the institutional framework for trade, investment and tourism and for key organisations make proposals on:

• Mandate, structure, staffing and funding
• Their programmes, activities and representation in Africa
• How short and medium term priorities are determined
• Performance measurement and evaluation
• Mechanisms for collaboration and joint co-ordination with other promotion organisations and relevant private sector bodies
• Linkages with the private sector in Mauritius and external partners

• Based on the activities above:

• make recommendations for the ‘look Africa policy’ including:

• Policy objectives and fit (coherence) with the country’s medium and long term development plans
• Measures to optimise the country’s competitiveness potential
• Supportive strategies , programmes and necessary instruments
• The institutional framework to underpin its  implementation

• Prepare a 'global Africa hub strategy'

Component 2: Marketing Plan for the financial sector (Africa)

• Assess the export performance of the country’s financial sector in the context of global developments ( particularly in Asia) and draw out key trends
• Review the implementation of the 2006 roadmap for financial services and outline major achievements and challenges
• Assess growth and demand patterns for financial products and services in Africa and identify business opportunities for Mauritius
• Recommend priority products and services, target countries and applicable market entry strategies
• Prepare an implementation plan for the MIFC to take advantage of the identified opportunities
• Submit a final marketing plan showing the MIFC positioning viz a viz other IFCs, target products/services and countries, short and medium term actions to improve performance

Milestones

• Week 5- An Inception report following the first mission to Mauritius
• Week 12- A Progress report
• Week 18- Draft “look Africa policy” and “Global Africa Hub Strategy”
• Week 20- Draft MIFC Marketing Plan
• Week 22- Final documents

Electronic versions of all reports are to be submitted to the Trade Advisor, Special Advisory Services Division, Commonwealth Secretariat.

Implementation Arrangements

The consultants will work closely with a co-ordinating committee under the Ministry of Foreign Affairs and the overall supervision of the Commonwealth Secretariat’s Trade Advisor. The project will employ a participatory approach. The consultants are expected to meet with stakeholders, and to convene consultations to discuss emerging findings and secure broader endorsement of recommendations at key stages of the assignment.

Professional qualifications and experience

A multi-disciplinary team with a Master’s degree or equivalent in Business, Economics, Law or related field is required. All experts should have a minimum of 10 years of relevant experience in finance /marketing / strategic planning / institutional development. The team should exhibit experience in all areas mentioned above. An in-depth understanding of the business environment in Mauritius and Africa and up to date knowledge of international and regional trade policy are key requirements.

Additionally, the lead consultant should have the ability to co-ordinate teams and be conversant with dealing with multiple stakeholders. S/he should have excellent communication skills and be familiar with scenario building. S/he should possess at least 15 years’ experience in both practical and advisory roles in international business and public sector management.

Level of effort and budget

• 21 person weeks (105 person days) of technical input over 7 months.
• An all-inclusive budget of £68,000 is provided. Workshops and document production will be covered separately.

Further Information

How to apply

Terms of Reference