Local enterprises in Mauritius, ranging from small-and-medium enterprises (SMEs) to major groups, are struggling to cope with a surge in fuel, electricity, and essential input prices. This has led to a significant reshaping of the nation's economic landscape. Many businesses have reached the end of their operational margins, and some have already been forced to close. Sakinah Caunhye, a 60-year-old business owner, had to permanently close her small business, Les Délices de Sakinah, due to escalating costs of essential inputs.
The mounting financial crisis has had a sector-wide impact. In the production and manufacturing sector, Christopher Lim, Chief Financial Officer of Esko & Co. Ltd, noted that fuel spikes have cascading effects on transportation, raw materials, and packaging expenses. While solar investments have partially mitigated electricity hikes, Lim warned that continuous increases can no longer be absorbed without raising retail prices to protect local production and employment.
The logistics sector is also feeling the strain, with Neerish Chooramun, Chief Marketing & Communications Officer at Velogic, stressing that transport fuel, equipment/vehicle maintenance, electricity, and general operational goods are placing severe pressure on the entire supply chain. The textile industry, represented by Nitish Rama, director of V Formula, highlighted that electricity remains a major overhead for industrial production, finishing, and washing.
The jewelry and retail sector, represented by Ashley and Wandan Gunness, founders of Djoko Stones Mauritius, pointed to the accumulation of rent, bank fees, professional services, marketing, and import costs. Balancing these against consumer purchasing power has severely compressed SME margins. The professional services sector, represented by Dr. Sameera Chattun Koyratty, CEO of Safe Sha Training Centre Ltd, detailed how non-energy-intensive businesses are hit by rising IT software, licenses, equipment, trainer travel, and venue rental costs.
To weather the storm, firms are turning to internal restructuring and technological tools rather than immediate job cuts. Esko & Co. Ltd has cut discretionary marketing expenses to safeguard its core business and jobs, while Velogic is prioritizing operational efficiency, resource optimization, digitalisation, and regular tariff reviews. V Formula is driving automation, waste reduction, purchasing controls, and energy management while moving toward higher value-added goods.
Djoko Stones Mauritius is tightening stock control, capping fixed overheads by avoiding new physical branches, and expanding online sales and social media presence. Safe Sha Training Centre Ltd is expanding online and hybrid training formats, alongside automation and artificial intelligence (AI) investments to contain logistics and travel expenses. These strategies aim to mitigate the effects of rising costs and maintain business viability.
Business leaders and industry experts are calling for government support to address the crisis. Arnaud Lagesse, President of Business Mauritius, urged for accelerated green energy transitions to lower fossil fuel dependency, alongside structured public-private dialogue to tackle critical water security, recruitment, and international retention hurdles. Sanjay Mungur, CEO of Empretec Mauritius, emphasized the need for targeted government support focusing on high-growth and export-capable SMEs.
Key points
- Mauritius' businesses face financial crisis as rising fuel, electricity, and input prices shrink margins.
- Firms are turning to internal restructuring and technological tools to mitigate the effects of rising costs.
- Business leaders are calling for government support to address the crisis, including accelerated green energy transitions and targeted support for high-growth SMEs.
