From an International Development Association (IDA) – supported
monocrop economy, predominantly dependent on sugar, and caught
in the Malthusian nightmare of overpopulation and massive unemployment,
Mauritius has successfully diversified its economic activities
by carving out special niches in textile, tourism and financial
services. Over the past five years the country registered an annual
average real growth rate of 5.1%, balance of payments surpluses
leading to a comfortable external reserves position, and a single
digit inflation on average. With a per capita income of US $ 5078
(for Jan to Oct 2004), Mauritius is now classified as a middle
income country and ranks, on the basis of the recent Human Development
Index for 173 countries, 67th globally, 40th among developing
countries and second in Africa. Sustaining the growth momentum
well into the future is a major challenge because of international
pressures such as globalization and liberalization. Furthermore,
reforms are required domestically to arrest fiscal decline, achieve
growth in labour and total factor productivity and address the
issues of pockets of poverty and an ageing population.
Diversification of the economy remains a priority. Emphasis is
now being laid on the following: developing the Information and
Communication Technology (ICT) sector, framing the right policy
mix to consolidate public finances, creating an enabling environment,
enhancing export competitiveness and modernizing the Welfare State
while favouring a participatory approach of all stakeholders.
Mauritius has embarked on a comprehensive reform programme to
move to its next phase of development capitalizing on human resources,
Information Technology and higher value-adding activities. This
is best achieved by the building on its existing strengths of
openness, high standards and best practices in the financial sector,
an advanced physical and telecommunication infrastructure, an
active capital market, competitive communication costs, a relatively
reasonable level of human and intellectual capital market, competitive
communication costs, a relatively reasonable level of human and
intellectual capital endowment, a well-developed social safety
network and, above all, good governance.
Mauritius aspires to become:
-
a thriving, a competitive and modern society, where the population
enjoys a high standard of living.
-
the region’s leading centre for international financial
services, including banking, insurance and other consultancy
services.
-
a liberal and well-regulated Cyber Island with state-of-art
Information Technology infrastructure and a supporting physical
and social infrastructure. Future projects: a network of mass
transit system, jobs nearer to residence.
-
an
essential node in the variety of international and regional
network flows allowing Mauritius to create its niche in international
profit bearing flows.
-
a centre of excellence in education and health.
-
an ecologically well-balanced economy ensuring that higher
growth is environmentally sustainable.
The
island’s membership of several regional groupings such as
the Common Market for Eastern and Southern Africa (COMESA), Southern
African Development Community (SADC), Indian Ocean Rim-Association
for Regional Cooperation (IOR-ARC) and the Indian Ocean Commission
(IOC) positions Mauritius as a key interface between Asia and Southern
and Eastern Africa.
An attractive blend of advantages is offered to international investors.
These include: political stability, pleasant and peaceful living
conditions, efficient telecommunications, pool of qualified professionals
conversant in English and French, Investment Promotion and Protection
Agreements, International Stock Exchange, Freeport activities and
the absence of exchange control. |
Mauritius
Economy
