The United Kingdom is considering fast-tracking a major financial package to Mauritius as part of an agreement to transfer sovereignty over the Chagos Islands, including the strategically important military base of Diego Garcia, to the island nation. This long-awaited deal follows a ruling by the International Court of Justice (ICJ) in 2019 that declared the UK’s administration of the islands unlawful. It comes at a time when the new Mauritian government has raised concerns about the terms of the agreement finalized in October 2023 under the previous administration.
Sources familiar with the ongoing negotiations indicate that while the UK is unwilling to increase the financial payout, it is considering speeding up the delivery of funds to Mauritius. Options under discussion include upfront lump-sum payments or revising the annual installments, allowing Mauritius to access more funds sooner. This is viewed as a strategy to help address the country’s urgent economic challenges while finalizing the sovereignty transfer.
The deal aims to resolve a long-standing territorial dispute between the UK and Mauritius, where Britain would relinquish sovereignty over the Chagos Archipelago but retain control of Diego Garcia for an additional 99 years under Mauritius’s sovereign rights. For Mauritius, the financial aspects of the deal are crucial not just for territorial sovereignty, but for securing much-needed financial support to stabilize its economy, which is grappling with rising public debt and a struggling currency.
The Mauritian government, facing a significant fiscal deficit and a projected gap of 6.7% of GDP for 2024-25, has emphasized that the financial terms of the agreement must align with the country’s current economic needs. While the former government had indicated that the UK would provide “many billions of rupees” in support, UK officials have downplayed reports suggesting a financial payout could reach £800 million per year, calling such figures inaccurate.
Mauritius’ new administration, under Prime Minister Navinchandra Ramgoolam, has expressed concerns that the deal’s terms may not sufficiently address the nation’s economic needs. The government has called for better financial support to help Mauritius manage its economic difficulties and ensure long-term stability. Deputy Prime Minister Paul Berenger recently stressed that Mauritius would not accept any deal that fails to provide adequate support for the people of the country, noting the importance of a fair deal for economic recovery.
The deal’s ratification has faced delays, with concerns raised not only by the Mauritian government but also by the incoming US administration, led by President-elect Donald Trump. Figures such as Marco Rubio, the proposed Secretary of State, have questioned the security implications of the deal, particularly regarding the control of Diego Garcia, a key base for both British and US military operations in the Indian Ocean.
Despite these objections, UK officials remain optimistic that the deal will proceed, with British diplomats confident that the Pentagon and State Department, who were instrumental in urging the UK to negotiate the agreement, will support it. The UK’s resolution of the Chagos Islands issue is seen as vital for maintaining the strategic significance of Diego Garcia, while Mauritius stands to gain both sovereignty over the islands and crucial economic assistance.
For Africa, the Chagos Islands issue highlights the complex dynamics of territorial disputes and the role of international law in resolving them. Mauritius’ successful negotiation for sovereignty could serve as an example for other African nations engaged in similar disputes. Moreover, it emphasizes the importance of securing fair financial deals that can help stabilize economies while asserting sovereignty, not just for Mauritius but for the broader African continent.