2ND TRIPARTITE CONFERENCE ON SUSTAINABLE URBANISATION FOR POVERTY ERADICATION

3 - 6 SEPTEMBER 2013

Kigali

Rwanda •Socio-Economic Growth for Financing Slum Upgrading

•Case Study of Mauritius

Presentation by Nandlall Seenauth

(BSc. Hons., MSc. City and Regional Planning)

Ministry of Housing and Lands

Republic of Mauritius

Presentation Content

1. History of Mauritius

2. Evolution of the Economy

3. Housing and Social Fund

Republic of Mauritius

Location of Mauritius

Geography

Mauritius is located approximately 2000 kilometers to the south eastern coast of Africa and lies east of Madagascar.

4

Brief History of Mauritius

First Visited by Portuguese sailors in (1507–1513)

Dutch First visited Island in 1598, colonization (1638–1710)

- Introduced Sugar cane(Abandoned in 1710 - cyclones, pest infestations, cattle illnesses, and droughts

Brief History of Mauritius

French Rule- (1710–1810)- Consolidated sugar Plantation

Naval Battle in 1810 (Napoleonic War)

(British Captured Island in 1810)

British Rule -(1810–1968)

Independence – 1968

Republic - 1992

Area : 2,040 sq km ( include Rodrigues and other islands) 1.27million sq.km of Ocean as EEZ (2X France) Terrain : small coastal plain rising to discontinuous

mountains encircling central plateau Population: 1.286 Million (as at 2011) Average population density: 632 /sq km Population growth rate: 0.751 %/ year Urban population : 42 %

Ethnic Groups Indo-Mauritian 68% General Population 27% Sino-Mauritian 3% Franco-Mauritian 2%

Facts about Mauritius

7

Economic Diversification in Mauritius

Pre- Independence Until the 1970’s- Sugarcane (Monocrop) – Guaranteed Price - Lome Convention

(ACP-EU)

No Natural Resources-

8

Year 1968 1980 1990 2012

Share of GDP (%) 27.6 10.5 10.7 1.2

% of Export 96 69.7 30.8

% of Employment 45.3 25.9 14.1

Economic Evolution in Mauritius

• Early 1970's – Export Processing Zone (Textile)

• Mid 1970’s Tourist Industry Take-off(free education – Secondary) – 1976

• 1990’s Financial Services (Offshore)

• 2000—to Date:

→Property Development:- Integrated Resort schemes- Real Estate Schemes

→ Freeport Operation (Transhipment)

Other Prospective Economic Pillars

Sea Food Hub – 1.27million sq.km of Ocean as EEZ

Land Based Oceanic Industry

Education Hub

Medical Tourists

Factors Enabling Economic Resilience

➢Political Stability➢Social Cohesiionn➢Literate Population (Free Education)➢Economic Diversification➢Package of Incentives to Attract FDI➢Good Air and Sea Links➢Good Infrastructture

Government Intervention in Eradication of Absolute Poverty 2010 – Creation of the Ministry of Social Integration and

Economic Empowerment (MSIEE) andNational Empowerment Foundation(NEF) and TrustFund for Social Integration of Vulnerable Groups(TFSIVG) created under Ministry.

2011 Government announced in the Budget Speech 2011, aNational Housing Programme to cater for the

needs of a variety of household groups, from the low tothe middle income groups. The programme consists of a mix

housing development of houses, serviced lots, socialamenities and recreational facilities.

2012 - Setting up of the Social Register of Mauritius (SRM)which will be a used as a powerful tool to maximisepolicy effectiveness in the social housing sector,especially families who are at the lower rungs of thesocio- economic ladder. 13

National Housing Programme (2011)Objective: To provide access to housing for the low, lower middle and middle income groups in the next 10 years.

Requirements: The provision of some 10,000 housing units for the low income groups (income bracket less than Rs 10,000) and 5,000numbers of serviced lots for the lower middle and middle income groups (income bracket between Rs 10,000 -25,000).

Target groups:

Scheme 1-housing units 39m2 for income earners <Rs 10,000Scheme 2-housing units 57m2 for income earners between Rs10,000 to Rs15,000Scheme 3-serviced lots for income earners between Rs15,001 to Rs25,000Scheme 4 -financial assistance to purchase a house in the open market for income

earners between Rs25,001 to Rs50,000

14

New Policy Direction Adopted in Budget 2012

Setting up of a Social Housing Development Fund - --(fund provided: Rs 1.5 billion). Financing of housingprojects to enable implementation agencies such as NHDCto be more efficient and to maintain a stable cash flow.

Private sector participation - encourage the setting upof Housing Development Trust ( not-for-profit) . The aim ofthe Trust is to enter the social housing market while bringingin private sector investment. Housing projects to beimplemented by the Trusts will be funded partly through theCSR (Corporate Social Responsibility). This will provide awider range of delivery units.

15

New Policy Direction Adopted in Budget 2012

Financial assistance to vulnerable groups – in line with the policy of Government to encourage ownership of land through sale of State Land in ex-CHA housing estates, families who simply do not have the means to purchase the state land on which stand their houses are being granted the land free of charge.

Improvement of infrastructure on existing NHDC housing estates - Most of the NHDC housing estates do not have a proper Syndic and this has resulted overtime towards the degradation of utility services and common areas. Government agreed to finance the setting up of Syndics in those housing estates.

Corporate Social Responsibility•Profitable company to set up a Corporate Social Responsibility (CSR) Fund equivalent to 2% of its profits chargeable to income tax

•utilize 50% of their CSR Fund to finance one or any of the four priority areas:

Four priority areas:

(a) Social housing;(b) Eradication of Absolute poverty andcommunity empowerment;(c) Welfare of children from vulnerable groups; and(d) Prevention of non-communicable diseases.

An estimated Rs. 5 billion (165million USD)is expected to be mobilised from CSR over the next ten years to support these programmes

Role of PSUP

Coordinate the :

Role of Institutions

Involve NGO’s and CBO’s

Action Oriented

Thank You