A tourism leader and preferred leisure destination in the Indian Ocean off the eastern coast of the African continent, Mauritius is also one of the most competitive and successful economies in Africa. Combining cultural legacies from Europe, Africa, India and China, the island-nation has evolved into a vibrant and diversified economy with growing industrial, financial, and tourism sectors.

Marked by a stable democratic government, a dynamic economy, a well educated population, a strong legal environment, and a hospitable climate, Mauritius has, since its independence in 1968, transformed itself through a series of shifts, from a largely agrarian mono-crop economy to a manufacturing centre in the 1980s and, thereafter, positioning itself as an international tourist and a strategic off-shore banking destination in the 1990s. These shifts saw Mauritius strengthening its financial systems with a strong banking sector and a growing off-shore sector that included more than 10,000 entities, making the country a vehicle for investment.

Recent Economic Reforms

In recent years, the Government of Mauritius has embarked on a bold economic reform program aimed at moving Mauritius from reliance on trade preferences to global competitiveness. The reform strategy is designed not only to remedy fiscal weaknesses but also to open up the economy, facilitate business, improve the investment climate, mobilize foreign direct investment and expertise and introduce structural reforms to support sustainable growth.

The success achieved has been aptly summed up by United States Senator Hillary Clinton: “Mauritius has taken steps in recent years to attract investment by enacting reforms that protect investors and promote business.They’ve made it easier to launch start-ups, to access credit, and to register property. They’ve demonstrated a commitment to transparency, accountability, and good governance…”

Another important element of investment climate improvement measures is labour market reforms. These reforms are aimed at substantially increasing flexibility, replacing the current tripartite wage setting mechanism with a National Wages Council and relaxing the need to seek approval for lay-offs.