01 October 2021

The reopening of borders is expected to have the most positive impact on businesses. This is the opinion of the majority (63%) of companies surveyed in a new study commissioned by Business Mauritius and Statistics Mauritius on the impact of COVID-19 on businesses, one year after the first survey. Made public at a press conference held on Friday 1 October, this report conducted by DCDM Research benefited from the participation of the nine partner members of Business Mauritius, namely AHRIM, AMM, IAM, MCA, MCCI, MEXA, BACECA, MBA, and OTAM, with technical and financial support from the United Nations Development Programme (UNDP) and the Government of Japan. The findings reveal the impact of the pandemic on businesses, and the expectations of business leaders for the remaining months of 2021.

"The reopening of borders, the recovery in our main markets and the vaccination against COVID-19 are, according to the companies surveyed, the three main factors that will contribute to business recovery in 2021. The findings of the report highlight the importance of tackling these challenges efficiently to ensure the recovery of the country and of its economy. In addition, the opening of borders will benefit all sectors of activity, beyond the tourism industry," said Kevin Ramkaloan, CEO of Business Mauritius.

609 private entities participated in this new survey from April to June 2021. The sample consisted of 56% SMEs, 25% medium sized and 19% large enterprises. Two-thirds of the companies surveyed were focused on the domestic market (69%), while a third (31%) were export-oriented. In June 2021, 65% of the companies surveyed were operating normally (52% for SMEs). 42% of respondents anticipate similar or better cashflow compared to 2019 figures, while two-thirds of them (67%) expect an increase in input costs this year.

The pandemic has forced many companies to adapt. While only 39% of firms adopted work-from-home in 2020, this figure rose to 57% during the second lockdown in 2021. 80% of large enterprises surveyed claimed that they are able to implement work-form-home, compared to 61% of SMEs.

After a complicated year in 2020, the first signs of recovery are here. 69% of companies plan to recruit or retain all their staff this year. While 69% of businesses surveyed experienced a decline in their sales in 2020, fewer (54%) predict a lower sales value in 2021 compared to 2019. Concerning exports, 52% of companies surveyed experienced a decrease in 2020, but 43% expect an increase in 2021 compared to 2020.

Finally, the study proposes areas of work and collaboration to decision-makers and other stakeholders, to find solutions designed for different types of enterprises, ranging from SMEs to large corporations, and to accelerate digitalization and innovation.

"The unprecedented disruption caused by COVID-19 has prompted companies to adapt their operations to the new business environment. In this context, this study provides data that will be useful for the improvement of official statistics," said Mukesh Dawoonauth, Acting Director General of Statistics Mauritius.

"As the pandemic has persisted, and evolved into several waves, it is now clear that resilience remains key. Business longevity will depend on the capacity for adaptation and reinvention; and on the responsiveness of the policy and regulatory environment to enable the private sector to evolve and thrive. Regular surveys of this kind can be instrumental in informing businesses and the regulatory environment to enable them to collectively plot the most effective way ahead.” said Amanda Serumaga, UNDP Resident Representative in Mauritius.  

"Mauritius, like other small island developing states, has been severely affected by the pandemic. However, the country has a good chance of reviving its economy. Given the size of its population, the rate of people vaccinated and their level of information and responsiveness, the Government will exercise strong leadership in the formulation of economic policies during this difficult period," added Shuichiro Kawaguchi, Ambassador of Japan to Mauritius.

To view the full report, please click here.

To view the launch video, please click here.