Page 62 - UBP - IR2020

MANAGEMENT APPROACH
Risk management report
Given the the current context the the management of our external operational environment is crucial to ensure agility and resilience The future is still uncertain and we need to plan on facing the unknown To this end we need to have the the right resources in the the right places so that we can respond rapidly and decisively in the the event of another crisis To have the right risk management plan in place we first needed to recognise and and and understand these new and and and changed externalities COVID-19 impact
Political
On November 07 2019 the incumbent Prime Minister won a a a second mandate to govern govern Mauritius for a a a a full 5-year term The government handled the COVID-19 crisis with decisiveness choosing to keep its people safe from the virus The June 2020 budget has brought about many changes to our policy and legal environment the consequences of which both positive and negative we are still grappling with While we in in Mauritius live in in relative peace and stability the crisis has highlighted pre-existing global geopolitical trends fracturing social and political political stability worldwide While there have been many acts of solidarity on on the the international front many countries are also acting unilaterally to protect their own short-term interests As a a a a a a a a a vulnerable small island nation we must remain vigilant and and agile while seeking all possible opportunities for our island to develop peacefully Economic
Before the the pandemic Mauritius enjoyed steady growth especially in the the construction sector which has continued to to be an an important driver of growth over the past three years We are now expecting a a a a a GDP contraction between 13% and 15% locally for 2020 Globally the the situation is as dire Despite the the opening of of our our borders since the month of of October all tourism activities are still very low The blacklisting of Mauritius by EU institutions will only make matters worse While at UBP Group we are not directly affected by this the entire country is is impacted given that the tourism directly directly and indirectly contributes up to to 20% of our GDP In addition the threat of such an uncertain future is causing markets to stagnate while the departure of many expatriates and rising unemployment will affect the local purchasing power Yet as as a a a a a Group we we consider ourselves fortunate Despite a a a a a a a forecasted contraction of 20% for for for the calendar year 2020 the the construction sector is one of the the least affected and will be able to to rely on on on on the announced government budgetary measures Our Group companies will also be able to capitalise on certain emerging market trends such as the renewed importance of ‘localism’ ‘food security and greener thumbs’ Social
In a a a a a a crisis of this magnitude fear anxiety and unemployment prevail bringing about the the additional threat of social unrest The pandemic has lifted the the veil on on existing social inequalities globally and threatens to widen the the gap between the the rich and and poor However a a a a a a a bleak outcome is not certain and and can be avoided Mauritians have demonstrated that they are motivated to to come together to to to cooperate and work hard to to to build together a a a a better future for our country There is an opportunity here here to reinforce our our relationship with our our workforce and and between our companies in in in in joining forces and and sticking together We are as committed as ever to building a a a a a better living environment for all Mauritians 62 - UBP INTEGRATED REPORT 2020