Official Resources

⇒ www.covid19.mu
⇒ besafemoris.mu

COVID-19 Restrictions

Movement Restrictions:

• Is a curfew in place? No
• Are there restrictions on intercity or interstate travel? Yes
  Some areas have been declared red zones to limit the propagation of the virus, protect the health of the inhabitants and limit their movements.

Transportation Options:

• Are commercial flights operating? Yes
  There are limited commercial flight departures for passengers traveling out of Mauritius.
• Is public transportation operating? Yes
  Buses operate along all major routes. Passengers should wear their face masks.

Fines for Non-Compliance:

• Non-compliance of mask regulations may result in a fine of MRs. 500,000.

Economic Measures

Key Policy Responses as of June 3, 2021

FISCAL

• At the beginning of the Covid outbreak, the authorities announced plans to increase general public health spending by Rs1.3bill (0.28 percent of GDP). A range of fiscal support measures have also been taken to limit the socio-economic impact of COVID-19.

  These include the implementation of a wage subsidy to employers under Government Wage Assistance Scheme – GWAS (for employees drawing a monthly basic wage of up to Rs 50,000 subject to a cap of Rs 12,500 per employee), as well as income support under Self-Employed Assistance Scheme – SEAS, for those employed in the informal sector or self-employed (receiving an amount of Rs 5,100 per month). Since July 2020, the schemes covered only employees in the tourism sector. It was announced that the support to the sector would continue until the opening of borders, with some Rs20 bill being used until June 2021. Throughout the lockdown in March 2021, the support was also provided to other sectors as half-a month payment, as well as a one-off grant of Rs 10,000 to the self-employed. In April 2021, as reopening started, the full month assistance was provided under both GWAS and SEAS for all sectors.

  The State Investment Corporation has been raising some Rs4 bill (0.8 percent of GDP) to make equity investments in troubled firms, including SMEs. The Development Bank of Mauritius Ltd (DBM) is to provide Rs10.2 bill (2.3 percent of GDP) in credit to distressed enterprises and cooperatives. All labor contracts set to expire this year have been extended through December 2021. The government has also established COVID-19 Solidarity Fund aimed at funding COVID-19 related projects (financial support to Mauritian residents and the financing of projects related to the COVID-19 virus and other related health issues), primarily relying on donations from the public and enterprises, however it was quite small - at roughly Rs500 mill. The government is to provide Rs9 bill support to Air Mauritius from its National Resilience Fund. In October 2020, it was announced that Rs9 bill would be redirected to limit the increase in unemployment. From November 1, 2020, until June 30, 2021 five initiatives will be funded: i) The Human Resource Development Council (HHRDC) increased the National Training and Reskilling Intake by some 9,000 unemployed in the construction, manufacturing, logistics, ICT-BPO, agro-industry, renewable energy and the circular economy. Beneficiaries are paid monthly stipends of Rs10,200 over a training period spanning six months; ii) Employment Support Scheme for SMEs to support 11,000 employees with a monthly payment of Rs10,200 per capita; iii) Recruitment by Landscope (Mtius) Ltd of some 2,000 technically unemployed people for the National Clean-Up Campaign; iv) The Air Freight Scheme, incorporated into the Economic Recovery Plan, has two components; namely supervision for the national airline, Air Mauritius, currently under voluntary administration and support for the export sector. As part of the Covid response, the government submitted to Parliament a supplementary spending bill of Rs17 bill (3.6% of GDP) in November 2020. The Mauritius Revenue Authority introduced a tax relief, where tax payments with due date falling in the period from November 2020 and up to May 2021 are deferred to end of June 2021. To support the most vulnerable following a new lockdown, the electricity was made free for March and April for individuals under the Social Register of Mauritius (SRM) or under the National Empowerment Foundation (NEF), as well as low-consuming SMEs, and at 46% discount for the following 4 months.

MONETARY AND MACRO-FINANCIAL

• The Bank of Mauritius (BOM) reduced the Key Repo Rate from 3.35 percent to 2.85 percent on March 10, 2020, followed by a further reduction to 1.85 percent on April 16, 2020. On March 13, 2020, the BOM also adopted a set of measures focused on economic operators which are being directly impacted by COVID-19, including: i) reduction of the cash reserve ratio from 9 to 8 percent, with the amount released through the cut earmarked to be made available to affected economic operators; ii) special credit line of Rs5 bill (1.1 percent or GDP) through commercial banks for affected firms to meet their cash flow and working capital requirements; iii) commercial banks also introduced a moratorium of six months on capital repayment for existing loans of affected economic operators; iv) the BOM also eased supervisory guidelines on handling credit impairments; and v) Rs5 bill (1.1 percent of GDP) of 2.5 percent two-year BOM savings bonds which were made available to retail investors.

  On March 23, 2020, BOM announced additional support measures: i) six-month moratorium on household loans at commercial banks, while BOM will bear interest payments for households with the lowest income; ii) Special Foreign Currency (USD) Line of Credit (initially $300 mill, extended by 200mill) targeting operators having foreign currency earnings, including SMEs; iii) swap arrangement to support import-oriented businesses (initial amount $100 mill); and iv) Shared ATM Services - waving ATM fees during national confinement period.

  On September 7, 2020, BOM announced the extension to December 31, 2020 of the moratoriums granted to economic operators (including Small and Medium Enterprises), households and individuals under its COVID-19 Support Program. The terms and conditions of the moratoriums remained unchanged. On December 2, 2020, these, together with a number of other measures falling under the Support Program, were further extended to June 30, 2021. Following the amendments to the BOM Act adopted by the parliament as part of CoVid Bill on May 15, 2020, the BOM Board approved the following additional measures in late May, 2020: 1) a one-off exceptional contribution of Rs60 bill (13.8% GDP) for the purpose of assisting Government in its fiscal measures to stabilize the economy of Mauritius; 2) setting up the Mauritius Investment Corporation Ltd (MIC) as a Special Purpose Vehicle with two-fold objectives: 1. mitigate contagion of the ongoing economic downturn to the banking sector, thus limiting macro-economic and financial risks; 2. secure and enhance financial wealth for current and future Mauritian generations while ensuring the stability of the banking sector. BOM announced that it would invest $2 bill of FX reserves in MIC towards the latter objective. It has also been announced Mauritius Investment Corporation (MIC) will focus on investing in the Pharmaceutical and Blue Economy as new strategic sectors. As of April 30, 2021, the MIC has been provided with Rs80 bill in financing by the BoM, of which about Rs2 bill was disbursed by end-April 2021.

  In mid-March 2021, to support the SMEs through the new lockdown, additional financial support has been put in place: i) An SME Interest-Free Loan Scheme in the amount of Rs100,000, without interest rate and a 5-year moratorium, for SMEs with less than Rs50 mill turnover. ii) the One Million SME Covid Special Support Scheme by DBM, with loans of up to Rs1 mill, without a guarantee, at 0.5% interest rate p.a. The DBM also granted an extended loan moratorium period of one year to all SMEs.

EXCHANGE RATE AND BALANCE OF PAYMENTS

• The central bank has maintained the flexible exchange rate regime and has intervened in the domestic foreign exchange market to prevent disorderly fluctuations and maintain FX liquidity in the financial system. In addition, BOM conducts swap transactions with commercial banks under its support program for import oriented businesses for an initial amount of $100 mill, later enlarged by another $100 mill available until December 2020. Furthermore, it has also provided the State Trading Corporation Ltd (STC) with FX to ensure adequate supply of essential goods to the public.

Civic Freedom Tracker

QUARANTINE (QUARANTINABLE DISEASES) REGULATIONS, 2020

The order, issued by the Minister of Health and Wellness under Section 4 of the Public Health Act, imposes a complete lockdown for 14 days, including on supermarkets. Police have authority to enter any premises without a warrant to enforce compliance with the regulations. Criminal sanctions can be imposed for violations, including imprisonment of up to 6 months. Essential service workers must apply for an access permit to attend work on-site. (See primary source or citation here)

Type: order
Date Introduced: 20 Mar 2020
Issue(s): Privacy, Movement