Diversification of the Mauritian Economy: New investment avenues

The diversification of the Mauritian economy, focusing on agriculture, new technologies, and renewable energies, comes with investment incentives and measures to promote economic stability.

The Mauritian economy rests on three primary pillars, namely financial services, tourism, and manufacturing, which have laid a strong foundation for many prosperous years. These sectors, represent approximately 11.9 %, 4.7 %, and 3.5 % of the Mauritian GDP, respectively. Since the beginning of the 2010s, diversifying the economy has posed a significant challenge. This is primarily due to the island’s excessive reliance on just these 3 sectors. Various investment avenues have been proposed as alternatives to address this issue. Adorned with investment incentives, these avenues are offered to investors and contribute to the ongoing process of economic diversification and stability.

Agricultural sector

The Mauritian government has focused on organic agriculture, agrotourism, and sustainable food production to revitalize this sector and create new income sources for local farmers.

Information and Communication Technology (ICT)

In 2021, while other sectors were affected by the pandemic, exports of ICT services reached a value of approximately 1 billion EUR. Mauritius can attract more investments and become a regional technology hub.

Renewable energies

By harnessing its abundant natural resources such as the sun and wind, the island can reduce its dependence on fossil fuels and promote a transition to a cleaner and more sustainable economy.

Economic diversification doesn’t happen overnight. The Mauritian government is well aware of this. Hence, it is a massive encouragement for foreign investment in these diverse areas. This encouragement is supported by supportive measures such as the creation of various specialized agencies and institutions tasked with promoting economic diversification. Notably, the Board of Investment (BOI) was established in 2001 to attract foreign investments and promote emerging sectors. Similarly, Enterprise Mauritius is a government agency that helps promote Mauritian exports and develop new markets. Additionally, tax incentives are offered to investors in real estate, automobile, and industrial sectors, among many others.

J.J.R