SMEs

This year’s measures aim at further easing access to finance for SMEs and reducing their costs


Most important measures:

Support to micro and small enterprises
Guarantee to banks by Government for losses on SME financing

 

Some statistics
Low cost financing provided to SMEs in 2012 Rs 1.5bn
Additional financing for 2013 Rs 250m
  • Annual additional loans of Rs250m to micro and small enterprises with turnover under Rs10m at interest rates capped at repo + 3%
  • Government will guarantee 50% of any losses incurred by banks to further ease the SME financing process
  • Leasing Equipment Modernisation Scheme (‘LEMS’) extended with interest rates on new leases reduced from 8.5% to 7.25%
  • Value Added Tax (‘VAT’) registration threshold  increased from a turnover of Rs2m to Rs4m per annum
  • Loans made by DBM to SMEs with capital outstanding  not exceeding Rs20,000 and unpaid for 3 years waived
  • Multiplicity of schemes for SMEs will be regrouped and rationalised
  • Performance bonds not required for government contracts up to Rs5m and Advance Payment Guarantees considerably overhauled
  • Refund to SMEs for participation in international fairs doubled to Rs200,000
  • Special grant of Rs10m to Enterprise Mauritius for the marketing of the local shoe industry.