The second deputy governor of the Bank of Mauritius, Gerard Sanspeur, has stepped down from his role, confirming his resignation on Friday. The announcement came after reports surfaced of a deepening dispute between him and the head of the institution, a conflict that had attracted the attention of Prime Minister Navinchandra Ramgoolam.
Sources suggested on Friday that Prime Minister Ramgoolam had already dismissed Sanspeur. At a press briefing, Sanspeur revealed that Ramgoolam had personally called him earlier that day, after which he tendered his resignation. He explained that his decision was linked to what he described as “external influence”, pointing to an unnamed figure who allegedly attempted to exert control over several sensitive operations at the bank.
According to Sanspeur, this individual sought to interfere in banking licence approvals, staff recruitment and dismissals, as well as tender processes. “When I made it clear that I didn’t want to collaborate with that person, things started to become difficult for me. There were all sorts of traps to push me out,” he told reporters, declining to provide further details.
The Bank of Mauritius later issued a brief statement confirming Sanspeur’s resignation but did not explain his departure.
Just days before the resignation, Prime Minister Ramgoolam had spoken publicly about tensions between central bank governor Rama Sithanen and Sanspeur. Ramgoolam, describing the feud as “unacceptable”, had indicated he hoped to settle the matter by the end of the week.
Sanspeur’s position as second deputy governor made him the number three official at the central bank. His disagreements within the institution reportedly spanned several issues, including the recognition of a trade union at the bank, the audit of the state-owned Mauritius Investment Corporation, and the appointment of the chairman of the State Bank of Mauritius.
Mauritius Faces Economic Slowdown And Rising Pressures
The political shake-up at the Bank of Mauritius comes as the country navigates a fragile economic environment. Growth has slowed markedly since 2024, with GDP expanding by 4.9% last year but cooling to an estimated 3.5% for 2025. The first quarter of this year recorded 4.2% growth, but performance across key sectors such as tourism and construction has moderated.
Inflation, meanwhile, has risen above 5% mid-year before easing slightly to 5.2% in July 2025. Rising prices for food, beverages, hospitality services, and financial products have been the main drivers. The central bank has maintained its repo rate at 4.5%, a cautious stance aimed at restraining inflation without undermining growth. Authorities expect inflation to remain within a medium-term target range of 2–5%.
Public debt, however, continues to mount. By the end of 2024, government debt stood at around USD 11.3 billion, roughly 77% of GDP, and is projected to reach 83% by the close of 2025. This rise has been linked to higher recurrent spending, including pensions and COVID-19 related measures. The government is now under pressure to consolidate its fiscal position through revenue-raising and deficit-reducing policies.
Unemployment has edged upward to about 6% in early 2025, compared to 5.8% late last year, with young people and women disproportionately affected.
Despite these pressures, the banking sector has held steady. Strong capital buffers, high liquidity ratios, and robust financial soundness indicators underpin its resilience.
Although some deterioration in loan quality is anticipated due to macroeconomic headwinds, banks are benefiting from higher interest rates that support profitability. Mauritius remains one of Africa’s most integrated financial hubs, though policymakers remain wary of external shocks and asset quality risks.
Against this backdrop of slowing growth, rising inflation, and increasing public debt, Sanspeur’s sudden resignation adds a layer of uncertainty. The government’s ability to navigate the internal conflict in the central bank, maintain fiscal discipline, and drive economic diversification will be key to stabilizing the country’s financial and political outlook.
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