With the UK’s decision to exit Europe’s common market, Mauritius apparel export earnings is likely to be hit by about a 10 per cent, in line with the rupee’s appreciation against the pound. Britain remains the largest buyer of Mauritian goods within the EU, accounting for 18 percent of total exports to the bloc. Textiles are Mauritius’ top export to the UK.
About 90 per cent of Mauritius’ revenue from export of textile and apparel to the UK comes in pounds while imports are in U.S. dollars.
According to Yogesh Singh, Chairman, Mauritius Exports Association, textile and clothing sector will be the most hit by the Brexit. It will definitely have a significant impact on the Mauritian economy as it is the largest export sector of the country. Moreover, medium-sized companies will be hardest-hit.
The Mauritian currency has strengthened to 46.6 rupees per pound from 51.92 rupees when the electorate voted to leave the EU. The bloc takes up more than half of Mauritius’ exports, providing 25.6 billion rupees worth of sales. Meanwhile, the dollar’s appreciation since the referendum has inflated manufacturers’ import costs, causing a “double whammy.”