Textile: Empower the Industry to Reinvent Itself

The fabric is 29% of the manufacturing sector which, in turn, contributes about 18% of gross domestic product and 26% of the workforce of the country. What makes an important segment of the textile manufacturing hub of our economy.

Among the measures announced in the fiscal year 2013 include the allocation of Rs 130 million to Enterprise Mauritius for the development of overseas markets, a depreciation of 50% of the cost of machinery, cancellation Bank Guarantee for the employment of foreign workers and the abolition of the AGOA Levy .

These measures have facilitated the use of foreign labor and helped to conquer new markets. " Enterprise Mauritius has done a good job of coaching through several 'B2B Meetings'. Several 'schemes' announced last year also had a supporting effect on the sector. Textiles today does need a little more resilient, because there is this desire to reach markets that are not traditional , "says Aline Wong, director of The Unexpected Ltd..

Operators textile export much to the United States and the African market, where Maurice is gaining significant market share, says Aline Wong. " The government should focus in the next budget, over 'schemes' for the textile industry, in particular by promoting research and development in this sector , "she advance.

For Guillaume Dalais, Executive Director of Tropic Knits Limited and Consolidated Dyeing and Fabrics Limited, a member of the SKY group, there is a need for continuity in promoting capital investment in new and modern equipment through Schemes such as the Forex LEMS Scheme announced in Budget 2013. " We also need more flexibility in the recruitment of foreign workers, especially with fewer conditions and administrative procedures for the abolition of the 'Bank Guarantee' is a reality. The fabric also needs a clear strategy in terms of cost and energy supply , "said William Dalais. It also underlines the urgency to reassess the cost of logistics by air between Mauritius and Madagascar to allow the region to be more attractive to European customers.

Cost of borrowing too high

In addition, operators of textile wish that the banking system is reviewed. Ram Mardemootoo, Future Textiles Ltd, argues that the cost of borrowing is too high in Mauritius. It would, he said, reviewing the banking system, specifically the bank charges on foreign exchange rates, and the Committee on the other bank charges.

" Each garment worth $ 12 exported by an SME, the bank pocketed Rs 18 on the exchange rates between the buying and selling of currencies. This, without omitting commissions on the letter of credit. For large companies that source their raw materials and pay their foreign currency account, the bank will acquire Rs 9, plus other interest and fees , "said he.

Operators, for the most part, expect still to terminerl'annéesurune positive note. " I anticipate a 20% growth in my income for the year 2013 , "suggests Aline Wong. She added: " Nous anticipons égalementu ne bonne croissance du textile en général cette année. "

The MEXA predicts an annual growth of 5% by 2018

The Mauritius Export Association (MEXA) anticipates an annual growth of 5% in the textile sector, to reach the threshold of Rs 60 billion in exports by 2018. To do this, it proposes the reintroduction of Investment Tax Allowance , over a period of five years, the export-oriented manufacturing companies. It also recommends reducing the price of LPG gas for industrial use.