• Mauritius faces deeper turmoil as PM Ramgoolam asks central bank governor Rama Krishna Sithanen to resign after weeks of tensions.
• The S&P Mauritius Sovereign Bond Index shows modest gains (+1.6% YTD, +2.4% over 1 year), reflecting stability amid political crisis.
• Compared to Kenya (+33% 1yr), Egypt (+27% 1yr) and Ghana (+79% 1yr), Mauritius offers lower returns but steadier bond performance.

The crisis at the Bank of Mauritius has deepened. On September 20, 2025, media reports citing Prime Minister Navinchandra Ramgoolam announced that the government had asked Governor Rama Krishna Sithanen to resign. This decision comes after several weeks of internal tensions that have weakened the institution.

At the end of August, Deputy Governor Gérard Sanspeur had already stepped down. He accused the governor’s son of interference in the management of the central bank. These accusations triggered a series of reactions and counter-accusations, creating a climate of mistrust. The matter ultimately culminated in the official request for the governor’s departure.

The Bank of Mauritius plays a crucial role in the country’s economy. It manages monetary policy, supervises the banking system, and ensures the stability of public debt. The current crisis therefore raises serious concerns about the institution’s ability to remain independent and maintain the confidence of investors.

Government bonds are one of the main ways the country finances its budget. As of September 20, 2025, the S&P Mauritius Sovereign Bond Index showed an increase of 1.6 percent since the start of the year and 2.4 percent over one year. Over a ten-year period, returns remain positive at just over 4 percent. These results reflect steady performance and relative stability despite the crisis.

In comparison, performance is much higher in other African countries. In Kenya, government bonds have risen more than 15 percent since January and 33 percent over one year. In Egypt, they have gained nearly 19 percent this year. In Ghana, which has recently restructured its debt, the figures are striking, with nearly 70 percent since the start of the year. Mauritius is therefore positioned in a calmer zone, but also less attractive for investors seeking higher returns.

Since his return to power in 2024, Prime Minister Ramgoolam had promised to boost growth and strengthen Mauritius as a financial hub. The current crisis casts doubt on that ambition, as it undermines the image of central bank independence. The appointments expected in the coming days will be crucial to restoring confidence. For now, the bond market remains stable despite the political turbulence. The next update of the sovereign rating by Fitch, expected by the end of September, will be key in assessing the impact of this crisis on Mauritius’s economic stability.

Idriss Linge