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development mauritius

The Mauritian economy is considered one of the most successful in Africa and is often cited as an example of a long-term stable economy. The Mauritius economy has developed from being reliant solely on sugar revenues (Agriculture) to a more diverse economy with five major pillars: sugar, tourism, textiles, financial services and IT.

Traditionally sugar was the main source of income for Mauritius but diversification gave rise to new pillars to create a stronger economy.

In spite of its small economic size, limited natural resources and remoteness from world markets; Mauritius has transformed itself from a poor sugar economy into one of the most successful economies in Africa in recent decades, largely through reliance on trade-led development but also its ability to negotiate tax, investment and financial agreements with Asian and African countries that established Mauritius as an financial transit hub and tax haven both in the Grey zone thus, attracting foreign companies and investors to the benefit of the country.

Technology also occupies a prominent place within the economy and is gradually positioning itself as one of the most important sources of income for the country.

Foreign Investment in Mauritius

Mauritius is an increasingly attractive prospect for foreign investors, with real estate and the financial services the most popular sectors. According to statistics from the Bank of Mauritius, Foreign Direct Investment (FDI) inflows into the Mauritian economy for 2016 saw an increase of 41% compared to the previous year, amounting to MUR 13.6 billion.

There are also signs of an increase in FDI from developing countries, with MUR 6.46 billion invested in 2016 as compared to MUR 3.34 billion in 2015.

France remains the leading source of FDI in Mauritius with a contribution of MUR 4.5 billion in 2016. The other main sources of FDI are from China and South Africa.

Freeport Zone Mauritius, Africa The activities of the Mauritius Freeport have positioned Mauritius as a leading regional trading, logistics value-added and distribution hub. Due to its strategic location in the Indian Ocean, Mauritius is today host to over 27,000 global operators looking to explore the regional and international consumer markets.
Mauritius Freeport is home to companies involved in regional trade, break bulk operations, simple assembly and transformation, light assembly and manufacturing for exports, LPG storage and re-export, and the processing of seafood products for leading global markets in the EU, the US and Far East.

Mauritius Pillars of the economy There are considered to be five pillars of the Mauritian economy: sugar; textiles and manufacturing; tourism and hospitality; financial services; and ICT. Mauritius has one of the stronger economies of the African countries, and has successfully diversified from a mainly sugar based economy to include tourism and textiles exportation from the 1980s onwards, with the newer financial and ICT sectors being added later.
Part of the strength of the Mauritian economy lies in the relative stability of its government, and the perception of a high degree of democracy, certainly when compared to other African countries, and an independent judiciary. Others strengths include its ability to attract foreign investors and gain access to foreign markets, respect for private property, good exchange rate management, and streamlined regulation.

Cultivation of Sugarcane in MauritiusSugar is one of the most commonly used commodities in the world, with countries with suitable climates located in the tropics, some of the largest producers of it. The history of this particular island in the tropics has been bound with the epic story of sugar for 300 years. Yet over 1000 years ago, sugar was already well known to the Indians and Chinese. As a valuable commodity, sugar travelled from the Far and Middle East to the gates of the Mediterranean, transported by Greek and Arab conquerors and introduced to the West by the Crusaders and sold for the price of gold by Venetian merchants in the 19th century.

Sugarcane cutting in Mauritius IslandEtymologically the word "Sugar" has its roots in the word "Arquera" which means "sand "in Sanskrit, one of the first known languages. This term has transformed into the word sugar in all Indo-European languages: sacquerons in Greek; in Latin, saccharin; sugar in English; in German, zucker; zucchero in Italian; in Arabic, sukkar; and azucar in Spanish. Sugar cane was first introduced to Mauritius by the Dutch and cultivated by the French and British as the tropical climate was perfect for growing sugar cane.