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Development

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.

banks mauritiusThe Mauritian banking industry currently includes 22 banks, 5 of which are local banks, 10 are foreign-owned subsidiaries, 1 is a joint venture, 4 are branches of foreign banks and 2 are licensed as private banks. The central bank, the Bank of Mauritius licenses these banks to carry out local and international banking business.

economic indicators mauiritius Here are some of the factors that make Mauritius an attractive prospect for foreign investors:
GDP per capita: approx. USD 9,600 (2016)
Moody’s Investors Service: BAA1 (2017)
GDP Growth: 3.6% (2016)
Unemployment: 7.9% (2015)
Inflation: 1.2%
Repo Rate: 4%
Convenient time zone (GMT +4)
Main Languages: French and English

foreign investement 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.
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.

shipping oceanThe ‘Blue Economy’ is considered to be a new frontier for Mauritius, and the government aims to conserve and make use of the oceans, seas and marine resources for sustainable development. Mauritius lays claims to an Exclusive Economic Zone (EEZ), of approximately 2 million square kilometres in the South West Indian Ocean, This EEZ still has a reasonable stock of various fish, for both offshore tuna fishing and local artisanal fishermen who use basket traps, harpoons hook-and-line, and large nets. However, deep-sea and ‘big game’ fishing produces a better income than artisanal fishing, but much of the lagoon and other areas that were traditionally fished have been overexploited, so now the government is providing incentives to fish in better, but which for some are less convenient, areas.

textile manufacturing mauritiusMauritius developed its textile manufacturing sector to diversify its economy and by the 1980s the share of manufacturing in GDP rose to 25% from 19% in the 1970s. The development of the exportation of textiles and garments complemented the tourism and sugar export industry. However with the expiration of the Multi-Fibre Agreement and the strength of China in the global textile market, Mauritius has had to refine its strategy to find other sources of manufacturing growth. Some of the growth areas in manufacturing include: light processing, electronics, precision engineering, watchmaking, and fine and costume jewellery. Another sector with potential is the production of organic and renewable energy, like wind turbines, solar panels, and bio-fuels through the industrial production of ethanol. With continued diversification, the manufacturing sector can remain a pillar of the economy for the foreseeable future.