SMEs: Xavier-Luc Duval Discusses Possibilities of Access to Finance

Xavier-Luc Duval  also announced the commissioning in late June, 40 industrial sites in La Tour Koenig and delivery by December 2013, 40 other units Bamboo.

Surrounded Minister Jim Seetaram (Business, Enterprise and Cooperatives) , Raj Ringadoo, President of EMS Partnership Fund, and Raj Dussoye, president of NRF Equity Fund and also CEO of Bank One, Grand treasurer dwelt on the availability of various financial support schemes for SMEs (including annual turnover does not exceed Rs 50 million) and micro-enterprises (those with a turnover of not more than Rs 10 million). Xavier-Luc Duval referred first to the special three-year plan and a total amount of Rs 3 billion, which was launched in December 2011 with the participation of commercial banks.

Under this plan, customers of commercial banks benefit from a concessional interest rate (currently 7.9%) and a guarantee of 35% on any loan from the government. At the end of May 2013, approximately 1,500 cases were approved borrowing by banks and for a total amount of Rs 1.9 billion. "There was no bad debts recorded so far under this plan. Everything suggests that the amount allocated to departure or Rs 3 billion will be exceeded at the end of three years, "said Deputy Prime Minister and Minister of Finance.

latter then reported the special plan of Rs 250 million announced in the Budget Speech 2013 and to date has supported 148 companies. Commercial banks have disbursed Rs 105 million, the loan is guaranteed up to 50% by the government. "This is a public / private partnership that works well," commented Xavier-Luc Duval . The resources available under the Leasing Equipment Modernization Scheme (LEMS) have also helped 377 SMEs in their acquisition of new machinery and equipment. Under the LEMS, Rs 546 million were released. With a line of credit of Rs 1 billion in foreign currency available to companies leasing, SMEs will have the opportunity to benefit of funding in foreign currencies (dollar, euro and pound sterling) at rates deemed interesting . Projects valued at about Rs 50 million has already been approved and are indicated in the media companies leasing a dozen companies intend to use this type of financing for a total of Rs 400 million.

Equity

Xavier-Luc Duval developed on two levels of funding have not been fully utilized by SMEs and micro-enterprises namely NRF Equity Fund and the SME Partnership Fund. Managed by Mazars Corporate Finance Ltd and an amount of Rs 300 million with a contribution 50/50 government and commercial banks, the NRF Equity Fund takes equity stakes in companies in a range of 25% to 49%. The duration of this participation is 10 years. The shares held by the fund may be redeemed by the company. Meanwhile, the fund is entitled to a dividend of 5% if the company announces profits. EMS Partnership Fund takes her holdings in companies whose annual turnover is less than Rs 10 million. Since its inception, it has occurred in the capital of 87 companies and has invested a budget of Rs 162 million. EMS Partnership Fund has the same functions as the NRF Equity Fund and buys preference shares. His participation may vary between Rs 300,000 and Rs 10 million in a company but it is limited to 49% of capital.

According to the Grand treasurer, a combination of the two aforementioned funds is envisaged. He said that initially the headquarters of the two funds in question will be based at Celicourt Building and showed that their management is done professionally.

50% subsidy

Regarding industrial, Xavier-Luc Duval  noted the entry into operation of 15 locations Abattoir Road, Roche Bois, and delivery of 40 units at the end of June 2013, in La Tour Koenig and Bamboo 40 others to the end of the year. The authorities have also already identified land Plaine Magnien and Solitude for the construction of new industrial buildings. The Deputy Prime Minister and Minister of Finance pointed out that tenants receive a subsidy of 50% of the state on rent. At Rs 8 per square foot for the first year of operation, Xavier-Luc Duval  believes that this is an incentive for SMEs.

Minister Jim Seetram elaborated on measures to support enterprises to develop their production. Under the Mauritius Business Growth Scheme, 178 manufacturing and service companies have received financial assistance amounting to Rs 207 million to meet specific costs (consultants or experts in technical fields). According to Jim Seetaram, 90% of the costs of consultants are supported by the government. Beneficiary companies must repay the amount awarded after a three-year moratorium.

Doing In addition, an overview of the contribution of the SME sector in economic development, Xavier-Luc Duval  announced that the share of agriculture in GDP has increased from 39% in 2007 to 40% in 2012, the number of jobs in SMEs accounted for 54% of total jobs in the country in 2012 against 51% in 2007. It is estimated that the sector employed 108,000 enterprises last year compared with 94,000 five years earlier. "This is a growing sector, which contributes to employment and wealth creation. "Xavier-Luc Duval  argued that in 2012 the net some 9 300 created in the country, about 8,000 were in the SME sector. "It is therefore not correct to say that this is an area where labor decreases," he added.