NEWS HIGHLIGHTS

For period of 06th to 10th February 2012 Agri-business sector

Local Economic Outlook

General

Decrease in the price of sugar on the local market The price of sugar on the international market is between $630-635 per ton, compared to $850 last year Local price to be updated mainly due to price decrease but also because of the local market liberalization as the Mauritius Sugar Syndicate no longer holds the monopoly in this sector Price for white sugar ranges between Rs 34-37 per kilo but will be revised down soon, whereas the price for speciality sugar is 2.5 times more expensive than white sugar In 2011, the sugar industry has produced 435,000 tons of sugar and generated a turnover of Rs 6.9 billion compared to Rs 6.1 billion in 2010 New companies importing sugar for local consumption Two companies, Funny Traders and another one not yet disclosed, are importing sugar for the local market The Sugar syndicate and small planters are lobbying so that a levy is applied on the imported sugar by those companies The Mauritius Cane Industry Authority Act soon to be amended so that a contribution fee will be paid for the dockers pension Upon enactment of this Act, the levy will be applied to all importers The BOI and Invest India sign a protocol agreement Invest India is a joint venture between the Indian government and the Federation of Indian Chambers of Commerce and Industry (FICCI) The agreement will be useful to both organisation so as to facilitate investment between India & Mauritius. The conditions are as follows: To promote entrepreneurship in their respective countries To identify specific investment projects To exchange information on investment opportunities, process, resources and legal framework To assist the companies in their pre-investment stage, identify potential business partners and help them in their negotiation process

Terra Milling Co. Ltd Targets production of 85,000 tons of speciality sugar Speciality sugar is more remunerative for the country than normal sugar The sugar company situated in Belle-Vue plans to produce 120% more of its current capacity of 70,000 tons An agreement was reached with Flacq United Estates Ltd for an additional 14,000 tons of sugar. Brown sugar received by Terra Milling will be converted into speciality sugar with high added-value This year, thanks to the agreement between Terra & FUEL for the supply of sugarcane from Mon Loisir to Terra Milling, the company will not require sugar from any other local factories to achieve its target of 85,000 tons The annual limit for the export of speciality sugar to Europe is 125,000 tons as per agreement with Sdzucker. With 85,000 tons from Terra Milling, the difference is exported by Deep River Beau Champ & FUEL

Tourism sector

LUX* Island Resorts 115% profit increase for the half-year ending 31st December 2011 115% increase in its operational profits, with Rs 175,216,000 against Rs 81,346,000 for the same period in 2010 Increase of 6% in the occupancy rate as ompared to last year The CEO is confident that the new identity of the group has played a role in 2011s progression

International and Regional News

General

Local Industry News

General

Oxenham E.C & Co Ltd Invests in a wines and spirits factory in Zambia The company will enter into partnership with a Zambian company, where Oxenham will hold 70% of shares Production in Zambia to begin in September 2012, but should not exceed that of Mauritius or India where they are now present for nearly 2 years The company intend to use Zambia to penetrate the neighbouring countries The distribution of its product will be through a Zambia company which is already active in the sector They are also investing in Angola whose production unit is scheduled to begin in July 2012

Property sector

ENL Group Moves to Zambia for the development of a commercial centre The group in partnership with the south-African firm Atterbury will invest in a commercial centre at the cost of Rs 2 billion Construction is scheduled to begin this year and be completed by next year Socota Textile Mills Ltd Invests Rs 2 billion in property development 1st phase: Construction of office spaces at the cost of Rs 100 million, is expected to be delivered in April 2012 2nd phase: Leisure, commercial and residential spaces to begin by next year Project will cover a total surface area of 26 acres on freehold land Architectural concept was designed by Eric Chavoix Architects

Banking sector

AfrAsia To be listed on the stock exchanges of Mauritius and Johannesburg The company is targeting its entry on both stock exchanges by the end of 2012 or the beginning of first trimester of 2013 This is expected to reinforce the banks expansion strategy in Africa AfrAsia has already set-up an office in South-Africa As a reminder, AfrAsia has acquired 35% shareholding in the Kingdom Financial Holdings of Zimbabwe for USD 9.5 million

Africa A new frontier for Mauritian companies 6 out of 10 world economies who have experienced the strongest growths for the past ten years were African countries Africa has registered a superior growth compared to East-Asia including Japan over the past 8 out of 10 years Some Mauritian companies who have moved to Africa in the following sectors: Agricultural Harel Freres holds 25% in the Ivorian company, Sucrivoire Deep River Beau Champ of CIEL Group in partnership with the European giant Tereos, owns a sugar factory in Tanzania FUEL Group of GML, owns 13.57% in the Companhia de Sena that operates a grant of 98,000 hectares of agriculture. They also owns a factory of annual production capacity of 110,000 tons of sugar Omnicane in negotiation to create a joint subsidiary with the Kenyan company, Kwale International Sugar Company British American Investment is studying a food production and renewable energy project in Mozambique, in partnership with the British group Sun Biofuels Food & Allied is part of a consortium who purchased the Companhia Industrial da Matola, an industrial complex that produces wheat and corn flour, semolina and pasta Food Innodis Ltd has invested in the production of poultry in Mozambique and is also negotiating management contracts in Nigeria Property Development ENL Group in partnership with South-African company Atterbury, to develop, build and manage a commercial centre in Lusaka, Zambia Finance Mauritius Commercial Bank Ltd is already present in Madagascar, Mozambique and South Africa. It has lately expanded its branch networks in these countries British American Investment already listed on the stock exchange of Nairobi has acquired 11% in the Kenyan bank, Equity Bank. They are also developing an insurance activity in East-Africa AfrAsia Bank of GML, has recently increased its capital from 37.5% to 50% in the AfrAsia Corporate Finance, with an option of total acquisition within 4 years. The company has also acquired 35% shareholding in the Kingdom Financial Holdings of Zimbabwe for USD 9.5 million Hotels Beachcomber Group investing in the construction of a hotel in Morocco

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