Financial sector – Profits from the MIC: the BoM creates a fund

The projects in which the Mauritius Investment Corporation (MIC) has invested have generated returns on investment. Harvesh Seegolam, governor of the Bank of Mauritius (BoM), announces that a fund will be created from these profits, for the benefit of the local economy. It was this Monday, June 10, at the Intercontinental Hotel in Balaclava, on the occasion of the annual meeting of the Africa Sovereign Investors Forum (ASIF), which ends on June 11 and whose theme is “Sustainable Development: Navigating Transitions, Catalyzing Opportunities and Driving Impact”.

“The MIC was created as an investment tool for the Bank of Mauritius. The institution was able to invest in projects with a return on investment. The MIC will have to start paying these returns to shareholders, with the Bank of Mauritius being a shareholder. The profits from the MIC will be put in a special reserve by the Bank of Mauritius,” explains Harvesh Seegolam. This fund will be expected to grow to constitute a substantial sum in the long term which will be used in the event of an economic shock to protect the financial system of Mauritius.

For his part, Mark Florman, president of the MIC, indicates that Mauritius can play an important role in mobilizing capital. The primary strategy of the MIC, he made clear, was to be a financial response to the crisis to protect jobs and support the community. The second strategy consists of working on the basis of our capital in order to diversify the local economy. “This involves partnerships with sophisticated foreign investors for the development of 'venture capital'. We need to consider the different opportunities,” he adds.

Furthermore, the ASIF Annual Meeting serves as a platform for discussions that aim to catalyze opportunities and generate significant impact on the African continent.