The Economic Development Board (EDB) of Mauritius, in collaboration with the Human Resource Development Council (HRDC), recently organized a workshop on digital transformation, e-marketing, and artificial intelligence (AI). The event, held on September 17, brought together industry experts and stakeholders, including representatives from Infosys, the University of Technology (UTM), and the University of Mauritius (UoM). The workshop aimed to position AI as a strategic tool for identifying new markets, targeting international buyers, and developing a digital roadmap.

Despite the potential benefits of AI, its adoption among exporters in Mauritius faces significant structural challenges. Over 80% of local manufacturing enterprises are small and medium-sized enterprises (SMEs) that lack modern Enterprise Resource Planning (ERP) systems and exploitable customer databases. These are essential prerequisites for implementing AI algorithms. Furthermore, deploying AI tools requires substantial capital investments, which can be a significant burden for companies already struggling with compressed profit margins due to inflation and freight costs.

The shortage of specialized skills in Data Science and AI engineering is another major obstacle to the widespread adoption of AI in Mauritius. The country's exporters need to invest in training and upskilling their workforce to effectively leverage AI technologies. Additionally, the EDB and HRDC must consider these challenges when developing strategies to support the adoption of AI among local businesses.

The implementation of AI in Mauritius' export sector is also influenced by the government's support mechanisms. The Freight Rebate Scheme (FRS) and the Trade Promotion and Marketing Scheme (TPMS) are two key initiatives that have been instrumental in promoting exports. However, these schemes are set to undergo changes between 2025 and 2027, which may impact the financial sustainability of exporters. The reduction in reimbursement rates may lead to a buildup of unpaid debts and arrears, further exacerbating the challenges faced by local businesses.

Industry experts emphasize that while AI can be a powerful business accelerator, it cannot replace sound public fund management and timely payment of company debts. To create a favorable business environment, the government must prioritize the financial health of local operators over the adoption of cutting-edge technologies. This approach will ensure that Mauritius' export sector is built on a solid foundation, enabling it to reap the benefits of AI and other digital technologies.

The EDB and HRDC are working to develop a digital roadmap that will support the growth of Mauritius' export sector. This roadmap is expected to address the challenges faced by local businesses, including the adoption of AI and other digital technologies. By providing a clear framework for digital transformation, the government aims to enhance the competitiveness of Mauritian exporters and increase their market share.

The successful integration of AI into Mauritius' export sector will require a coordinated effort from the government, industry stakeholders, and educational institutions. By working together, these stakeholders can address the structural challenges and skills shortages that currently hinder the adoption of AI. This collaborative approach will enable Mauritius to harness the potential of AI and drive sustainable growth in its export sector.

Key points

  • - The adoption of AI among exporters in Mauritius faces significant structural challenges, including a lack of modern ERP systems and exploitable customer databases. - The shortage of specialized skills in Data Science and AI engineering is a major obstacle to the widespread adoption of AI in Mauritius. - The government's support mechanisms, such as the FRS and TPMS, will undergo changes between 2025 and 2027, which may impact the financial sustainability of exporters.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.