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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 124
March
2010
March
2011
March
2012
March
2013
March
2014
March
2015
1500
1600
1700
1800
1900
2000
2100
2200
Source: Stock Exchange of Mauritius Newsletter, July 2015
Source: Statistics Mauritius, Productivity and Competitiveness indicators
The challenge of low productivity: Evolution of Productivity indices
The Mauritian economy has been operating in a context of declining productivity gains for several years in a row, which is keeping the
economy on a low value-added growth path. The Bank commends Government’s declared ambition to speed up the shift from an industrial
policy to an innovation policy model but reckons that bold reforms would be required to achieve the transition.
Adopting a new growth model would indeed require improving productivity at the firm level to raise the country’s competitiveness.
As identified by the World Bank, several factors are currently holding back the potential of the Mauritian economy to accelerate economic
growth and these include limited and inadequate skills, limitations for technology absorption and inadequate trade facilitation. The fact that
Mauritius’ innovation system ranks 76
th
in the 2014 global competitiveness index – far behind other middle-income countries – also require
urgent attention on the part of the political masters.
-1
0
1
-3
-2
2
3
4
5
6
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Labour Productivity
Capital Productivity
Multifactor Productivity
MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)
EVOLUTION OF THE SEMDEX, 2010 - 2015
ANNUAL PRODUCTIVITY GROWTH IN MAURITIUS, 2003-2013