France and EU Pledge Rs 6.3 Billion to Fix Mauritius Water Crisis

Prime Minister Navin Ramgoolam has secured a major financial package worth 120 million euros, approximately Rs 6.3 billion, to address Mauritius's long-standing water supply problems. The agreement was announced on Tuesday 10 November during an official visit to Paris.

The funding comes from two sources. The Agence française de développement (AFD), France's public development finance institution, is providing a loan of 100 million euros. The European Union is contributing an additional grant of 20 million euros. Together, the package represents one of the largest single investments in Mauritius's water infrastructure in recent memory.

The deal is not yet fully binding. It remains subject to final approval by the AFD's board of directors, which is expected to meet and vote on the matter the following week.

Once confirmed, the funds will be directed at three main priorities: renovating ageing water infrastructure across the island, improving water production and distribution capacity, and significantly reducing leaks in the national pipe network. Water losses through leaky pipes have been a persistent problem in Mauritius, with the Central Water Authority (CWA), the state body responsible for water supply, long acknowledging that a substantial share of treated water never reaches consumers.

Discussions between Prime Minister Ramgoolam and the director general of the AFD also touched on future cooperation from 2027 onwards, covering waste management, renewable energy and the broader green transition. These areas are likely to form the basis of follow-on agreements once the current water project is underway.

Speaking after the meetings, Ramgoolam expressed gratitude toward the AFD, the French government and the European Union, describing the partnership as essential for confronting Mauritius's environmental and development challenges.

What this means: For ordinary Mauritians, this investment could translate into fewer water cuts, more reliable supply in areas that currently face rationing, and a reduction in the government's long-term cost of treating and distributing water. For the broader economy, improving water infrastructure supports agriculture, tourism and construction, all sectors that depend on consistent water access. The involvement of both France and the EU signals continued international confidence in Mauritius as a development partner, and the grant component means a portion of the funding does not need to be repaid.

Source: ION News