Mauritius is a prime example of success when it comes to a country being intent on growing its economy. It has done so through many different avenues, including trading. Now this country is looking at generating $6.5 billion in gold trading over the next five years.
The trading roster in Mauritius has been based on several commodities, but now it is primarily looking at gold. $6.5 billion on a yearly basis is the expectation that has been placed on this trade. If proven successful, then this island will become Africa’s financial gateway.
What is taking place is the result of a promise made by the Prime Minister, who was intent on introducing gold trading to the island. The growth of this trade will see trading in derivatives, as well as a refinery and bullion storage vault.
This type of undertaking does not come without the need for investment. It is estimated the cost for the country will be about $35 million, which includes the building of the vault.
Projects are in place for the trade activity, being estimated that in 2019 there will be 31 tons of gold traded, and by 2023 this amount will increase to 156 tons. The value for a three year period is expected to be about $1.2 billion of market gold in the trade.
The Country’s Gold
Mauritius has an impressive Gold reserve, which was about 12.40 tonnes in the second quarter of 2018. The gold assets of the island are in the control of the central bank. Mauritius manages to remain stable with its gold reserves, making it a prime candidate for gold trading.
It is believed that the involvement in this new trade opportunity is going to serve to boost the economy of the country to an even greater degree. It may provide the opportunity for the country to eliminate its trade deficit.