Last year Mauritius lent more than $10 billion to organisations in many African countries, according to AfriAsia Kingdom Financial Holdings Limited.
“While Zimbabwe has focused on Asia, China in particular, one African country that has been overlooked is Mauritius. With a Gross Domestic Product of around $11 billion and a deposit base of $22 billion, Mauritius represents a potential source of funding,” says Kingdom’s latest report.
Investor scepticism about politics, limited foreign capital inflows and reduced capacity utilisation, a lack of competitiveness and weak export capacity have resulted in companies struggling to raise capital to recapitalise.
Tight liquidity conditions in the entire economy have also pushed up the cost of borrowing, making it almost impossible for companies to access bank loans to support their operations.
Post published in: Business