Stability, Subsidies, and a Hub Between Asia and Africa – Mauritius: The Strategic Gateway for Trade Between Asia and Africa

Minister Hon. Michaël Yeung Sik Yuen reveals how Mauritius balances robust consumer protection with a bold ambition to become the primary commercial bridge for the Asia-Africa trade corridor.

Question: Can you tell us about your background and the journey that brought you to the Ministry of Commerce and Consumer Protection?

Answer: I studied commerce in Canada before returning to Mauritius to join my family’s retail and supermarket business. I entered politics in 2005 as a councillor for Curepipe and later became mayor. In 2010, I was first appointed Minister of Business, Enterprise, Commerce and Consumer Protection before moving to the Ministry of Tourism and Leisure in 2011. I returned to the government in November 2024 when the Prime Minister appointed me once again to lead the Commerce and Consumer Protection portfolio.

Question: What did you find when you returned to the ministry in November 2024, and what has changed since?

Answer: We inherited major financial deficits, particularly at the State Trading Corporation, which manages the pricing mechanism for petrol and diesel. That account alone carried a deficit of approximately MUR 2.4 billion (about US$74 million). Today it has been reduced to around MUR 1.6 billion (about US$35 million), while we have also lowered the price of mogas twice and diesel once. The turnaround has been significant. The State Trading Corporation recorded losses of MUR 3.7 billion (about US$80.5 million) in 2021-2022, but this year it posted a profit of MUR 3.5 billion (about US$76.2 million). That demonstrates what disciplined management and clear priorities can achieve.

Question: Cost of living is a global concern. How is Mauritius keeping essential goods affordable for its people?

Answer: Before the election, we committed to a price stabilization fund of MUR 10 billion (about US$218 million), and implementation has already begun at around MUR 2 billion (about US$43.5 million)per year. Working with the Chamber of Commerce and consumer associations, we identified a basket of essential products including milk, cheese, edible oil, diapers, canned goods, and selected pharmaceutical products. Milk powder is subsidized by MUR 50 (about US$1.10), edible oil by MUR 10 to MUR 15 (about US$0.22 to US$0.33), and medicines for hypertension, diabetes, and cardiac conditions priced above MUR 100 (about US$2.18) receive a MUR 50 discount. Medicines below that threshold are provided free of charge.

Question: Do these subsidies apply only to Mauritians, or to everyone?
Answer: They apply to everyone, including tourists. The same principle applies to LPG gas and flour, which remain heavily subsidized. A 12kg LPG bottle costs the government close to MUR 600 (about US$13)and is sold at MUR 190 (about US$4.10). These measures help maintain affordability while supporting Mauritius’ attractiveness as a place to live and do business.

“Mauritius is a place where you have political stability. We respect the decision of the population.”

Question: How is this level of consumer support financed without creating new deficits?
Answer: The food basket is financed through the price stabilization fund, while LPG gas, flour, and rice subsidies are supported through a dedicated levy of MUR 7.20 (about US$0.16) per litre collected on mogas and gas oil. It is a transparent mechanism that allows us to maintain predictable pricing for essential goods without destabilizing the broader economy.

Question: Beyond consumer protection, how does Mauritius position itself as a commercial gateway between Asia and Africa?
Answer: Mauritius has long understood that its competitive advantage lies in being a predictable and transparent bridge between markets. Several ministries and institutions work together on this strategy, including Financial Services, Industry, SMEs, and the Economic Development Board. One of my ambitions is to develop a large-scale trade fair modeled on the Canton Fair, where Indian and Chinese exporters can showcase opportunities for African markets while African entrepreneurs identify investment and trade partnerships. Mauritius offers investors clarity, stability, and ease of doing business, which are critical advantages for a regional hub.

Question: E-commerce is reshaping retail worldwide. How is Mauritius approaching this sector?
Answer: E-commerce is growing rapidly, but it also requires regulation. We are finalizing a framework designed to strengthen transparency and consumer trust. Businesses operating online will need to register under their legal business name, hold valid licences, and comply with clear standards. Innovation is important, but it must operate within a credible regulatory framework that protects consumers.

Question: Where do you see the commerce sector of Mauritius heading over the next five to ten years?
Answer: The sector will become more competitive, more digital, and more consumer-driven. We are encouraging greater competition by expanding the range of imported products through the State Trading Corporation while supporting innovation in retail and marketing. The objective is to create a more dynamic marketplace where consumers benefit from wider choice, stronger competition, and fair pricing.

Question: Finally, what message would you like to share with TIME Africa readers on why now is the right moment to invest in Mauritius?
Answer: Mauritius offers political stability, institutional transparency, a stable currency, and a business-friendly environment. Investors value predictability, and Mauritius has built credibility through governance, consistency, and openness. Beyond that, Mauritius is positioning itself strategically between Asia and Africa as a trade, investment, and services hub. The long-term ambition is to strengthen the country’s role within the Asia–Africa corridor while continuing to attract investors, entrepreneurs, and international businesses looking for a stable and globally connected platform.

Download the full Mauritius report in PDF format here.

The post Stability, Subsidies, and a Hub Between Asia and Africa – Mauritius: The Strategic Gateway for Trade Between Asia and Africa appeared first on Time Africa.