[{"bbox": [85, 153, 323, 185], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 219, 234, 247], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 265, 1161, 558], "category": "Text", "text": "Mauritius has served as model of a well-accomplished transformation from a low-income, mono-crop agricultural (sugar) economy in the 70s to the highly diversified and competitive economy it is today. Mauritius is an Upper Middle Income Country with a population of approximately 1.3 million. The country temporarily became a High Income Country in 2020 but lost this status in 2021 due to the Covid-19 crisis. In 2020 the country suffered its first recession after 40 years with a negative growth rate of 15%. A gradual economic recovery started in 2021 and is expected to continue in 2022 and beyond. Tourism, one of the main drivers of growth, gradually resumed in the second semester of 2021 with travel restrictions easing following increasing vaccination rates. Besides, continued recovery of manufacturing exports is in line with global demand. Uptakes in construction, wholesale trade, and financial and insurance services are also expected. The recovery remains subject to significant risks, including a prolonged pandemic or failure to address longstanding structural constraints to investments, competitiveness, and skills development."}, {"bbox": [96, 583, 1161, 715], "category": "Text", "text": "In October 2020, Mauritius was identified by the EU as a high-risk third country on Anti-Money Laundering and Countering Terrorist Financing (AML/CTF). With consistent support from the EU and other donors and thanks to the efforts by the authorities, the country addressed the strategic deficiencies identified by the Financial Action Task Force (FATF), stopped being subject to the FATF monitoring process in October 2021 and was delisted by the EU as of March 2022."}, {"bbox": [96, 742, 1161, 850], "category": "Text", "text": "Mauritius is a key partner for the EU. An ally for regional integration in the African and Indian Ocean regions (it is a member of Africa Union, the Common Market for Eastern and Southern Africa (COMESA), the Indian Ocean Commission (IOC) whose HQ it hosts, the Southern African Development Community (SADC) as well as Indian Ocean Rim Association), it has the potential to be a champion for the Indo-Pacific vision."}, {"bbox": [96, 874, 835, 902], "category": "Text", "text": "Mauritius has a generally good track record for the implementation of EU funds."}, {"bbox": [96, 927, 1161, 1115], "category": "Text", "text": "By supporting the implementation of the MIP and of the TEI, the CF will contribute to the implementation of the Government \"Vision 2030\" and to the Masterplan for Environment (2020-2030). In both the public and the private sector in Mauritius, there is a lack of necessary resources and expertise to carry out studies, project preparation, to carry out effective policy dialogues and for promoting EU's action. The CF will provide the required support to both the EU and institutional partners in the implementation of the MIP and Government's emerging needs and priorities and of the TEI. It will also support policy dialogues and ensure awareness and understanding of the EU's action in, and cooperation with Mauritius through strategic communication and public diplomacy."}, {"bbox": [85, 1154, 340, 1185], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1202, 1161, 1335], "category": "Text", "text": "Despite the intrinsic political stability of Mauritius, Government's priorities tend to change very rapidly in Mauritius and the EU is often confronted with requests to assist the authorities in a number of varied areas that are constantly changing. It is important to have an adequate capacity to respond to request with high level quality technical assistance to support at the national institutions, also to ensure the successful implementation of the EU cooperation and the sustainable development of the country."}, {"bbox": [96, 1360, 1161, 1442], "category": "Text", "text": "Also, the end of the role of the National Authorising Officer (NAO) under the NDICI/Global Europe represents an opportunity to develop new cooperation mechanisms with the Government and to ensure that the limited resources are used to support common priorities, as established in the MIP."}, {"bbox": [96, 1466, 1161, 1600], "category": "Text", "text": "At the same time, the few past experiences with technical assistance support to private sector organisations have shown that dynamic local entrepreneurs have clear ideas in mind, with strong potential for innovation, job creation and value added, but often lack access to good international expertise or do not know how to activate the right channels to obtain the support needed to structure, design and kick-start innovative projects. Moreover, it is the private sector which is in the driver seat for the Mauritian economy. As a consequence, the EU plans to use this CF to work more"}, {"bbox": [1038, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 4 of 12"}]