Clensy Appavoo, CEO & Senior Partner of HLB Mauritius: “we must not blindly announce measures”

Has improving purchasing power become a card for politicians to play?

Obviously ! People have received raises, but the first quarter of this year took up a lot of that. Prices of food and services have risen dramatically.

The different political parties are sharpening their measures in order to pamper the electorate. Is this a way to win votes?

It is still early to comment on this question. Some measures have been announced by the Opposition Alliance, but we do not have the complete picture. We have to see what the regime in place will propose in response. The government in place has a lot of cards in its hand. A lot of water will flow under the bridge until the next budget and the next general election. It is also important to see what other political parties are proposing.

What about the economic implications that the measures linked to purchasing power could bring about?

We must not blindly announce measures. When we talk about free transport for all, it is not enough to say that it is a measure that is current in Luxembourg. There is an extraordinary gap between Luxembourg, which is a rich country, and Mauritius. The gross domestic product per capita of Luxembourg compared to Mauritius is incomparable. Our island, with all its problems, has no natural resources. We must not engage in demagoguery. It should be explained how the measures will be financed.

the population will benefit from any measure aimed at improving purchasing power. However, the financing of the announced measures should be defined.

Some of the measures envisaged gave rise to various comments. Are there winners and losers for measures that have been described as far-fetched?

Purchasing power affects the entire population. This will benefit from any measure aimed at improving purchasing power. However, as mentioned before, the financing of the proposed measures must be defined. A section of the population risks being skinned. Funding will come from taxes and consumption. The government finances the budget and creates economic growth primarily through consumption. It is therefore a question of value added tax. Thus, on the one hand, we improve purchasing power and on the other hand, we take from everyone's pocket.