Mauritius

Economic Overview

The Republic of Mauritius is widely regarded as one of Africa's most successful and competitive economies. It has achieved a remarkable transition from a low-income, agriculture-based economy into a diversified, high-income economy driven by tourism, financial services, and technology. As a stable democracy with strong institutions and a favorable business environment, Mauritius has positioned itself as a premier International Financial Centre (IFC) and a gateway for investment into Africa and Asia. The 2025-2026 outlook is positive, supported by a robust recovery in tourism and continued strength in its financial and ICT sectors.

GDP Size & Growth Trajectory

Mauritius has a small but resilient economy. After being hit hard by the collapse in global travel during the pandemic, the economy has staged a powerful recovery. Real GDP growth was estimated at a strong 7.0% in 2023. Growth is expected to normalize to a stable and healthy rate, with the IMF forecasting 4.5% in 2025. This growth is driven by the full recovery of the tourism sector and continued expansion in financial services and ICT.

Sector Composition

Mauritius's economic success is a story of deliberate diversification.

• Services: This is the overwhelmingly dominant sector, contributing over 70% of GDP. It is led by three key pillars:
  • Tourism: A cornerstone of the economy, focusing on the high-end luxury market.
  • Financial Services: The country is a leading International Financial Centre, specializing in global business, cross-border investment, and private wealth management.
  • ICT/BPO: A rapidly growing sector focused on business process outsourcing, IT services, and software development.
• Industry: Accounting for around 20% of GDP, the industrial sector includes light manufacturing (especially textiles), agro-processing (sugar), and construction.
• Agriculture: While its economic importance has declined significantly (around 3% of GDP), the sugar cane industry remains a feature of the landscape and a source of export earnings.

Inflation Trends

The Bank of Mauritius has been proactive in managing inflation. After a period of elevated prices due to global factors, inflation has been brought back under control. Inflation is forecast to moderate further, falling to 4.9% in 2025, aligning with the central bank's price stability objectives.

Fiscal & Monetary Policy Stance

• Monetary Policy: The Bank of Mauritius has pursued a data-driven monetary policy, tightening when necessary to combat inflation and now holding a steady course to support growth.
• Fiscal Policy: The government is focused on maintaining fiscal discipline, gradually reducing the budget deficit, and ensuring public debt remains on a sustainable path.

Debt Sustainability Indicators

Public debt levels rose to support the economy during the pandemic but are now on a downward trajectory. Prudent fiscal management and a return to strong economic growth are expected to further improve debt metrics.

Table 1: Key Macroeconomic Indicators (2023-2026F)

Market Size & Demand Potential

As a small island nation, Mauritius's market strategy is outward-looking, serving as a hub for international business rather than relying on its domestic market.

Population Size and Demographics

With a population of approximately 1.3 million, the domestic market is small. The population is ethnically diverse and has a high level of education.

Urbanization and Consumer Hubs

The country is highly urbanized, with the capital city, Port Louis, serving as the main administrative and business center. Other important areas include the Cybercity at Ebène, which is the hub of the ICT industry, and coastal regions like Grand Baie, which are centers for tourism and expatriate living.

Consumer Spending & Market Access

Mauritius is a high-income country with a sophisticated consumer base and high purchasing power. The retail sector is well-developed and modern, with a wide range of international products and services available.

Business Environment: Africa's Most Competitive Economy

Mauritius consistently ranks as the easiest place to do business in Sub-Saharan Africa. Its business environment is its primary competitive advantage.

Ease of Doing Business & Regulatory Reforms

The country was ranked 13th globally in the World Bank's last Doing Business report. The government has created a highly efficient, transparent, and business-friendly regulatory framework. The Economic Development Board (EDB) is a high-functioning, one-stop-shop agency for investment promotion and facilitation.

Company Registration Process

The company registration process is fully digitized and exceptionally efficient. A company can be incorporated online in a matter of hours. The process for obtaining business permits, licenses, and visas for skilled professionals is streamlined and predictable.

Tax Regime

Mauritius has a simple and attractive tax system:

• Corporate Income Tax (CIT): A harmonized rate of 15%.
• Personal Income Tax: A harmonized rate of 15%.
• Value Added Tax (VAT): The standard rate is 15%. There is no capital gains tax, no inheritance tax, and no exchange controls, making it a highly attractive jurisdiction for international business and investment.

Political Stability & Governance

Mauritius is a beacon of political stability, with a long and uninterrupted history of democratic governance.

Political Environment

The country is a stable, multi-party parliamentary democracy based on the Westminster model. It has a strong tradition of peaceful elections and orderly transfers of power. This political predictability is a cornerstone of investor confidence.

Rule of Law & Investor Protection

The legal system is a unique hybrid of French civil law and British common law. The judiciary is independent and highly respected, with the UK's Privy Council serving as the final court of appeal. Property rights are strongly protected, and contract enforcement is reliable. The country's commitment to the rule of law is a key reason for its success as an International Financial Centre.

Infrastructure Readiness

Mauritius boasts high-quality, modern infrastructure.

Transport and Logistics

• Airport: Sir Seewoosagur Ramgoolam International Airport is a modern and efficient hub, connecting Mauritius to major cities in Africa, Europe, Asia, and the Middle East.
• Port: Port Louis is a modern deep-water port that plays a key role in regional trade and serves as a hub for container transshipment.

Digital Infrastructure

This is a key strength. Mauritius has invested heavily in digital connectivity. The country is connected to multiple undersea fiber-optic cables, ensuring fast and reliable internet access. A high-speed fiber-to-the-home network covers the entire island, providing near-universal access to broadband internet, which is the foundation for its thriving ICT/BPO sector.

Sector-Specific Opportunities

1. Financial Services (Global Business)

This is the most sophisticated sector. Mauritius is a leading platform for structuring cross-border investments into Africa and India. Opportunities are vast in:

• Global Business Companies: Establishing holding companies, investment funds, and special purpose vehicles.
• Wealth Management: Providing private banking and wealth management services to high-net-worth individuals.
• FinTech: The country's well-regulated environment and modern infrastructure make it an ideal sandbox for developing and deploying FinTech solutions.

2. Information and Communication Technology (ICT) / Business Process Outsourcing (BPO)

Leveraging its bilingual (English/French) and educated workforce, excellent digital infrastructure, and favorable time zone, Mauritius is a major hub for BPO, IT support, and software development services for European and African markets.

3. High-End Tourism and Real Estate

The tourism sector continues to offer opportunities in the luxury segment. A key related sector is real estate, with government schemes like the Integrated Resort Scheme (IRS) and Property Development Scheme (PDS) allowing foreigners to purchase luxury villas and obtain residency, driving significant investment in high-end residential and hospitality projects.

4. Renewable Energy

As an island nation dependent on imported fossil fuels, there is a strong government push to increase the share of renewable energy. Opportunities exist in developing solar and wind power projects to improve the country's energy security.