Research and consulting in Mauritius

Country overview:

IOA has conducted research and consulting on Mauritius, covering diverse topics and trends. The Indian Ocean island nation is known as Africa’s premier investment destination thanks to its political stability, well developed economy and extraordinarily friendly business environment. Because of the global Covid-19 pandemic, the country reverted to being a high middle-income country in 2021, but the drop is foreseen as temporary. Liberal business regulations and government policies supporting the financial and ICT sectors have contributed greatly to economic growth. Mauritius has marketed itself as a luxury vacation and holiday residence destination, as well as a financial investment hub.

IOA economists have noted the country’s diversified economy, with agriculture and fishing now augmented by new manufacturing enterprises. These act as a safety against over-reliance on financial services and tourism sectors. Good governance made possible by political stability and a leadership dedicated to multi-party democracy has overseen economic growth.

Key opportunities in Mauritius:

The tourism industry, fully recovered from the Covid-19 pandemic, is again booming and attracting high-end visitors to luxury resorts
Sugar production introduced by French plantation owners remains a viable export industry
The country’s robust financial sector and position as a tax haven have drawn substantial investment, particularly from the East

Key concerns/risks in Mauritius:

Because local manufacturing and food production are small, most goods must be imported, which is costly and has led to high inflation
The archipelago is vulnerable to climate change impacts such as intensified storms like Cyclone Belal that devastated the country in January 2024
Economic inequity has shrunk substantially but remains a societal problem until fully eradicated

Find out about how IOA can help you with research and consulting services in Mauritius

Tips on doing business in Mauritius:

Starting a business:

The Mauritian government operates a host of schemes aimed at attracting foreign investors into the local property market. The construction of local property is a viable path to residency and citizenship
Foreigners may own 100% of a locally incorporated company with no minimum capital requirement outside of specialised industries such as the insurance sector
(Read more at: https://edbmauritius.org/why-invest-in-mauritius)

Doing business:

Mauritius is well known as one of the most business-friendly environments in the African region, with a stable political system, a diversified, liberalised economy and generous incentives offered to foreign investors
In terms of tax incentives, the country offers a flat 15% income tax rate, no taxes on dividends and capital gains, and very generous tax deductions for key subsectors, including ICT and export-oriented manufacturing
Alternatively, the small size of the local market, skills shortages and the vast distances between the country and more developed markets can pose some challenges

Culture and society:

Mauritius is generally considered physically safe, though petty crime has been known to occur
Cyclone season is from November to May and can come paired with heavy rains, winds, and property damage
French and a closely related local language known as Mauritian Creole are the main languages though English is technically one of the country’s official languages and is generally understood in formal business contexts. Mauritian business culture is generally quite formal and not altogether different from the norm in the US, UK and Europe