I have read with much interest the recent article of Mr Abbas Currimjee on social housing in l’express. His proposal merits serious consideration since it addresses not only a social need but also has the potential of generating employment in the short term and at low cost. It is also in line with the mission of the Ministry of Housing which is “to provide /facilitate access to a variety of affordable housing to cater for the different and evolving needs of present and future generations”. One of its objectives is to provide housing for the low, lower middle and middle income groups. Housing has been a priority for the government as exemplified in the incentives provided in the last Budget, given the backlog of housing units in the country.

It is well known that the construction sector has been on the downtrend over the years; it had negative growth in the past five years. Construction activities have dropped by 25% between 2010 and 2015. Although the sector is projected to recover with a growth of 1.6% in 2016, I am skeptical whether this will be achieved given the slackness in the start of huge projects. Mauritius is yet to become a “grand chantier” and we are already in the second half of the year. Investment in construction today is only 56% of its 2010 level. The sector has been fed with the idea that some big projects will give a boost to the sector but these have not materialized to date.

Of course, we always think of huge projects to give a fillip to the construction sector or, for that matter, to any sector. In last year’s Budget Smart Ci- ties and the Heritage City were announced and these have their own raison d’être. Large enter- prises in construction do depend on big projects for their activities to expand. But they have not been forthcoming; there is a big gap between intent and action. In the meantime, the unemployment situation worsens. Given the limited funds available, encouraging Mauritians to invest in their own housing can provide gainful employment to many persons working in the construction sector especially in different regions of the country. Small projects have a potential to generate employment and meet an economic and a social need. This is particularly so since construction activities have a high multiplier effect and is bound to give a boost to other related activities.

Integrated approach

One peculiarity of the construction sector is that small enterprises, entrepreneurs and self-employed represent the bulk of employment in the sector; they represent 70% of employment, that is 36,059 compared to 14,741 for large enterprises. Very often, these small ones are forgotten just like we pay much lip service to SMEs compared to their bigger counterparts. In this perspective, building social housing can help to generate employment across the country and contribute to alleviate the housing deficit that the country has.

The Ministry of Housing has its own projects implemented through institutions like NHDC. The CSR has also been used to provide housing for those in dire need with limited success. But there is room for decent and more spacious housing catering for the lower middle and middle class. With a low cost to the government, it will lead to initiative by the population to save and invest in their own housing and promote an integrated approach to development from the environmental, economic and social standpoints. This is an argument I have made in a recent article to the effect that if we can invest billions in huge projects we can at least spare a trickle for projects which bene- fit lower income groups. Smart cities have their own infrastructure and amenities. Smaller housing units can be built with modest facilities and amenities to ensure a more balanced socio-economic development and be a model to help improve the environment and infrastructure for the entire population.

It is a Keynesian and pragmatic approach. Limited funds channelled to labour intensive activities may generate employment in the short run. We have taken housing as an example. The same logic applies be it Agriculture or SMEs or Transport. It is becoming a long wait. The construction sector has been waiting for 5 years for a recovery. The unemployed are also waiting. The Government is waiting for fun- ding partners from abroad. Now we are all waiting for the Budget. At least we can kick-start something.