Simplified systems create thriving Mauritian textile industry

Cutting bureaucracy has not only created a thriving textile and garment industry in Mauritius but also significantly boosted its exports. According to Dev Chamroo, CEO of Enterprise Mauritius, this was all achieved on an island with no cotton fields and no sheep. “So how do you even think of starting a cotton industry when you have none of the basic requirements,” he asked during a panel discussion at Source Africa 2014 in Cape Town. “By being innovative and by creating an environment that can thrive.” He said bold steps were taken at times - including a resolution where applications for licences and permits are considered granted within a set period of time when one does not hear from the civil servant. “In other words, if you apply for a permit and the civil service take their time and don’t get back to you within a stipulated time period, that permit or licence is then considered granted. If they want to revoke it then the civil service must go to court to do it,” he said. “Also, all kinds of incentives were taken away completely. In their place is an extremely simple customs and duties process. The same goes for taxation on the island.” Generating billion of dollars of export every year, the industry has grown to such an extent that they are now outsourcing production to foreign countries including South Africa, Botswana, India and Bangladesh. “We are also in the process of setting up production processes in Uganda and Ethiopia. We have introduced cotton farming in Madagascar and Mozambique to secure production,” he said. He said the key to success was being able to add value to the production line. INSERT In place of incentives there is an extremely simple customs and duties process. – Dev Chamroo