(Last updated: 1 Sep 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Mauritius. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Mauritius has successfully moved away from being a low-income, monocrop economy. The economic policy of the government has been focused on steering the economy away from its traditional dependence initially on sugar, moving on to textiles, then more elaborate sectors to seek greater diversification and openness.

The island is recognised and highlighted worldwide as a success story. It was ranked 20^th globally and 1^st in Africa in the 2011 World Bank Doing Business Report. The island boasts a business-friendly environment with supportive legislation/ frameworks to international standards.

The International Monetary Fund and the World Bank favourably assessed the Financial Sector of Mauritius under the Financial Sector Assessment Programme and it has always featured on the G-20 white list for international financial centres.

Mauritius is positioned as a regional centre for financial services and for information and communications technology. Another element of the diversification of the country’s economic base is the further development of the tourism and seafood sectors. The government is also working on transforming Mauritius into a regional hub for tertiary education by establishing links with reputable foreign institutions to enhance local delivery of courses and attract more international students to the island.

Mauritius economic reform program has been based on supply side, growth promoting policies characterised by low taxes (15 per cent income and corporate tax), deregulation and fiscal prudence. In 2010 the volume of investment from Mauritius to Africa was to a level of around $53 million.

Main challenges remain unemployment, inflation, budget deficits and social and economic imbalances.

Mauritian GDP is today largely dependent on services (tourism, business and financial services, wholesale and retail trade), manufacturing (textiles), and agriculture (sugar).

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Mauritius is a parliamentary republic. Administrative power lies in the hands of the Prime Minister and his cabinet. A 62-member National Assembly holds legislative power. The National Assembly is elected every five years, as is the term for the Presidency. The President, who is appointed by the National Assembly, is a symbolic figure.

Ideological differences between major political groupings in Mauritius no longer exist, as is demonstrated by the ease with which alliances are made and broken. The frequency and fluidity of changing alliances may create the impression of political instability, but this is not the case. The commitment to democracy is strong and all parties seem to agree broadly on the country’s major developmental and economic priorities.

The Labour Party Leader and current Prime Minister is leading the Alliance de l’Avenir, with a slim majority in the National Assembly following some last minute political moves by one of its former partners. The government is now steering on course and seeks to move forward with its policy agenda. The next elections are scheduled for 2015.

The Government of Mauritius' official website contains a vast amount of information on the various ministries, parastatal bodies and contacts, with links to them all and provides access to all official documentation and reports.

Trade relations and statistics

Mauritius is a member of several international and regional groups such as the Commonwealth, the African Union, SADC, COMESA, the ACP, and more.

The emergence of the two main regional trading blocs ie. COMESA and Southern African Development Community (SADC) is favouring more intra-regional trade. For instance, the ratified SADC Trade Protocol provides for the elimination of all tariff barriers within a number of years. The Southern African region is an interesting emerging market. However, Mauritian trade with SADC shows a significant deficit.  South Africa is the most prominent exporter to Mauritius from SADC. Structuring business through Mauritius would enable Australian companies to access the expanded market of SADC/ COMESA, potentially 500 million people, within a context of increasing urbanisation.

Besides its very strong historical and cultural links with India, Mauritius also enjoys privileged relationships with the UK and France.

Double taxation treaties exist between Mauritius and 36 other countries, with more treaties awaiting ratification as they are still being negotiated. A Tax Information Exchange Agreement was signed with Australia in 2010.

Mauritius has positioned itself as a trusted and secure International Services Centre for investment flows from major economic powers into the emerging markets of Asia and Africa and vice versa. It also offers international businesses a high quality financial environment with sophisticated products. Mauritius has over 35,400 global business companies holding assets outside Mauritius and over 400 investment funds, with a Net Asset Base of over US $75 billion.

The commercial relationship between Mauritius and Australia has shown a healthy growth in the last few years. Exports of services (consulting services, and education) have also grown significantly. A very large number of Mauritian students head for Australia to pursue their further education each year.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.