LAUNCH OF AFRINEX, 25 OCTOBER 2021

Hon Mr. Pravind Kumar Jugnauth, Prime Minister of the Republic of Mauritius;

Hon Mr. Shri Alan Ganoo, Minister of Land Transport and Light Rail, Foreign Affairs, Regional Integration and International Trade;

Hon Mr Renganenden Padyachi, Minister of Finance,

Hon Mr Mahen Kumar Seeruttun, Minister of Financial Services and Good Governance

Hon. Mr. Rampertab, Chairman of MGI

• Mr Harvesh Seegolam, Governor of the Bank of Mauritius
• Mr Mardayah Kona Yerukunondu, Chairman of the Financial Services Commisision
• Mr Dhanesswurnath Thakoor, Chief Executive, Financial Services Commission
• Mr Ashish Chauhan, MD & CEO of Bombay Stock Exchange Ltd.
• Baronness Sandip Verma & other distinguished Directors of AFRINEX
• Krishna Gangopadhyaya, CEO & MD of AFRINEX,
• S.K. Chadda

Namaste, Good morning, Bon jour to all of you!

1. I have been here in this beautiful country for over 10 months now and have had the privilege of attending several important events. But this is the first time that I feel like I am participating in a historic moment. To me, it is a red-letter day because, it is not everyday that one gets to be a part of launching a path-breaking new institution with the potential to transform a country, a continent and the world. It is not everyday that one sees a far-sighted vision transform into reality on the ground. Today’s inauguration of AFRINEX is indeed one such defining moment because, it was the Hon’ble Prime Minister Mr. Pravind Jugnauth’s personal vision to have a pan-African exchange in Mauritius – an exchange that adds value to Mauritius’s global profile as an international financial centre of high repute while also imparting greater economic heft to the African region. I would therefore like to congratulate H.E. the Prime Minister of Republic of Mauritius for his farsighted and visionary leadership and personal drive that has made AFRINEX a reality today, despite the challenges of a Covid economy.

2. We are happy that the vision sprang from the Hon’ble Prime Minister’s visit to the Bombay Stock Exchange in 2019 and are deeply honoured that AFRINEX is being set up with Mauritius-India cooperation under a Public Private Partnership model. Given the special ties between Mauritius and India, it is no surprise that India understood the compelling economic case that AFRINEX presented, and that in 2016, India’s former Finance Minister Late Shri Arun Jaitley ji had mooted the idea of setting up an international exchange in Mauritius that could potentially serve as a Gateway to Africa. In a reflection of the importance India attaches to Mauritius, the Government of India invited the Bombay Stock Exchange to support the setting up of AFRINEX by providing the necessary technology, skill and infrastructure, especially the Exchange and Clearing and Settlement technology platform. I am therefore, deeply honoured to be a part of this important chapter in the India-Mauritius relationship and this moment in our exciting, economic journey forward.

3. The Bombay Stock Exchange has an important role in making this day possible and so, I would like to thank BSE for their steadfast support, not only in terms of technology, skills and manpower, but also by investing in AFRINEX. I look forward to AFRINEX joining the long list of successful India-Mauritius bilateral projects; paving the way towards our shared vision for Mauritius, India and Africa; and adding further depth and substance to the rich relationship that Mauritius and India enjoy. I would also like to warmly congratulate the Directors of AFRINEX and Ms. Krishna Gangopadhyay and her team for their dedication, determined efforts and their commendable commitment to setting up Afrinex, despite several challenges.

4. As a Pan African Exchange based out of Mauritius, AFRINEX can be a game-changer, not only for Mauritius but also for Africa and beyond.  With the world admiringly acknowledging  the key contribution of the financial services sector to the “Mauritian Miracle” in which Mauritius transformed itself from  a poor single crop country into a high income country in just about 50 years, Mauritius has shown that it has the financial know-how and experience and is ideally suited to be the Financial and Capital Market hub of Africa.  The fact that today, Mauritius is categorized as the leading democracy in Africa with the highest transparency and Human Development Index and as the easiest place to do business in the continent, makes it ideally suited to position itself as an international financial services and capital market destination for Africa and beyond.

5. Ladies and Gentlemen, as wise people say, in life, timing is everything. There could not have been a better time to launch AFRINEX. 4 days ago, Mauritius exited the FATF Grey list in record time, going down in history as the first country in the world to get off the FATF list so quickly, despite the daunting challenges of Covid. We all know that Mauritius was able to achieve this, thanks to the strong and focused leadership of H.E. Prime Minister Shri Pravind Jugnauth and the determined and dedicated efforts of his team. As a friend and well-wisher of Mauritius, all of India joins me in congratulating you, Your Excellency, on this extraordinary achievement. Given that Mauritius is the second largest source of Foreign Direct Investment into India, all Indians are also looking forward to a welcome increase in FDI inflows into India through Mauritius, following the de-listing.

6. From a larger bilateral perspective too, AFRINEX is coming up at an opportune time. Six months ago, India’s first-ever Free Trade Agreement in Africa, the CECPA with Mauritius, entered into force. It underscored once again, the importance of Mauritius to India and India’s continued commitment to Africa’s growth and rise.  When our External Affairs Minister interacted with Mauritian business leaders in February when CECPA was signed, he talked about how CECPA could contribute to not only enhancing Maurtitius-India trade and investment, but also to position Mauritius as a “hub to Africa”. With CECPA and with Mauritius being party to several African Trade Agreements including the recent African Continental Free Trade Area Agreement; through AFRINEX, Mauritius could become a fund-raising destination that helps integrate the continent economically.  It could also generate greater employment opportunities across the international financial market value chain. AFRINEX can be a game changer not just for Mauritius or India or Africa, but for the entire world.  For a beleaguered world that desperately needs a revitalized post-Covid global economy, I think this is the kind of good news that the world needs!

7. AFRINEX also comes when the Covid pandemic has globally accelerated the changing priorities of businesses, governments and people and transformed the way we work. As with music, news or films today, increasingly, an International Financial Centre of tomorrow will no longer be about physical infrastructure, but more about offering transactions platforms that seamlessly capture global financial transactions in investment and trade.  It is inevitable that Mauritius too will need to adopt a futuristic model of International Financial Centre services that facilitates the global flow of transactions and is driven more by government policies, incentives, and ease of doing business; rather than physical infrastructure facilities. In this, what is helpful is that although the focus of AFRINEX is primarily on Africa, the Exchange is also uniquely positioned at a time zone that allows it to cater to European, US as well as African and Asian markets.  With the proposed extended trading hours of the Exchange, there would also be ease of price discovery.

8. In May this year, when I had the honour of joining Madam Kobita Jugnauth in launching the commencement of mock trading, I was delighted to hear that the Government of Mauritius has already taken policy initiatives to make the Securities Laws in Mauritius comparable with those of leading International Financial Centres, such as the Securities Act, Securities Disclosure Rules and several other capital market rules. These initiatives towards a progressive and adaptive financial market ecosystem in Mauritius, are truly commendable. Similarly, as a market infrastructure institution, it is wonderful news that AFRINEX’s robust and transparent rules spell out its commitment to enable innovative partnerships between investors and enterprises, that challenge conventional business and operating models.

9. Excellencies, Ladies and Gentlemen, in this context, please allow me to say a few words about the GIFT City in India. The lovely video that we just saw mentioned about exploring the concept of an international exchange at GIFT City in India, way back in 2017. I wish to inform that much has evolved over the past 4 years in GIFT City as well. The total cumulative trading turnover has exceeded 7 trillion US Dollars in the past 4 years. The floodgates have opened in primary market fund raising and listing through GIFT City, with more than 55 Billion US dollars of Medium Term Note (MTN) programmes established at international exchanges there. New business lines and transactions such as aircraft leasing have also been enabled. I believe AFRINEX is uniquely positioned to define the contours of a Mauritius IFC–GIFT City corridor that further augments the international financial centre services offered in Mauritius.  I think that this opens the door to the possibility of deeper financial and economic engagement between Mauritius and India.

10. With Africa, the world’s youngest continent containing extraordinary resources, being seen as the growth continent of the future; and Mauritius reinventing itself as a springboard to Africa; the entry into force of CECPA and other Free Trade Agreements signed by Mauritius, the gradual return to a pre-Covid economy; Mauritius’s exit from the FATF’s Grey-list and the launch of AFRINEX today – all of these seem like a well-timed synchronicty that was meant to happen. AFRINEX couldn’t have come at a more opportune time.

11. In this festive season of Diwali when we worship Goddess Lakshmi, the Goddess of wealth and prosperity, I pray for the success of AFRINEX and extend my best wishes to the Managing Director Ms. Gangopadhyay and her team; the investors who have betted on AFRINEX with their wallets; to the Bombay Stock Exchange, as well as the government and people of Mauritius. THANK YOU! DHANYAVAAD

12. Before closing, I would like to extend a special thanks once again, to H.E. the Hon.Prime Minister Mr. Pravind Jugnauth for his visionary initiative and for making the Bombay Stock Exchange and India a partner in this exciting new journey. THANK YOU.