Mauritius Economy

Since independence in 1968, Mauritius has developed from a low-income, agriculturally based economy to a diversified economy with growing industrial, financial, and tourist sectors. For most of the period, annual growth has been of the order of 5% to 6%.

Mauritius has the seventh-highest GDP per capita in Africa. The economy is mainly dependent on sugarcane plantations, tourism, textiles, and services, but other sectors are rapidly developing as well. Mauritius, Libya, and Seychelles are the only three African nations with a “high” Human Development Index rating. Sugar cane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings.

The government’s development strategy centers on foreign investment. Mauritius has attracted more than 9,000 offshore entities; many aimed at commerce in India and South Africa while investment in the banking sector alone has reached over $1 billion. Economic performance during the period from 2000 through 2004 combined strong economic growth with unemployment at 7.6% in December 2004.

France is the country’s biggest trading partner, has close ties with the country, and provides technical assistance in various forms. In addition, reforms aimed at attracting new business opportunities have also been implemented. But, one of the biggest black spot is the traffic movement between the towns, which is slowing the development of Mauritius. The corporate tax has recently been reduced to 15% to encourage non resident companies to trade or invest through a permanent establishment or otherwise.

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