Mauritius

Population

Population Projections (millions)

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force)

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+)

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

Source: COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

Source: COMTRADE Statistics.

Mauritius’ Top Import Products (USD ‘000)

Source: COMTRADE Statistics.

Mauritius’ Top Export Products (USD ‘000)

Source: COMTRADE Statistics.

Investment Profile

FDI Inflows (millions of USD)

FDI Outflows (millions of USD)

FDI Inward Stock (millions of USD)

FDI Outward Stock (millions of USD)

FDI Inflows Main Source Countries (in terms of number of projects)

India, South Africa, United States, France, UK, Bermuda, UAE, Luxembourg, Switzerland, and Canada.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Financial Services, Business Services, Software & IT services, Communications, Hotels & Tourism, Real Estate, Coal, Oil and Natural Gas, Consumer Products, Renewable energy, and Electronic Components.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Indian Oil (IOC), Thomas Cook Group, Apollo Hospitals Group, Equinoxe, Astonfield, Club Mediterranee, Investec, Bank of China, Kalawave, and Mangalore Refinery & Petrochemicals (MRPL).

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

Source: World Bank, Doing Business, 2020

Starting a Business

*GNI per capita used: USD 12,050
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

Source: World Bank, Doing Business, 2020

Trading Across Borders

Assumptions

• It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
• It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
• A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
• Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
• If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
• The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
• Time is measured in hours, and 1 day is 24 hours.
• Costs do not include tariffs.

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Economic Development Board Act 2017 

Investment Incentives

Attractiveness of Mauritius as a premier Manufacturing Bas 

• All manufacturing companies and export-oriented businesses benefit from incentives which contribute to the general improvement of their cost-competitiveness. The Government has the clear objective of increasing value-addition and the value of exports from A comprehensive incentive package is offered to investors and these include, inter alia:
  • 3 per cent corporate tax on profits derived from exports of goods
  • No import duties on equipment and raw material
  • VAT on raw materials is payable at customs clearance but reimbursable on exports
  • Sea Freight rebate scheme: Exporters are eligible for a refund of 25% of the basic sea freight cost to a maximum of USD 300 for 20’ container and USD 600 for 40’ to 45 eligible African regional ports
  • Speed to market scheme allowing 40% refund in air freight cost for exports of textiles and apparels, jewellery, medical devices, fruits, flowers, vegetables and chilled fish
  • Industrial electricity tariffs for manufacturing activities (MUR 97 kWh)
• Additionally, to position Mauritius as a cost-competitive, export-oriented and value-addition platform, the following set of incentives and measures, specifically geared for the high-tech and high value-added manufacturing sector, has been established to support existing and new manufacturing companies to set-up or grow their activities in Mauritius;
  • The setting up of 3 business and industrial parks, namely (i) The Riche Terre Business and Industrial Park (ii) The Pharmaceutical and Lifesciences Park at Rose Belle (iii) The High-Tech Park at Cote d’Or, for the development of high value-added and high-tech manufacturing activities in targeted sectors
  • 8-year income tax-holiday for companies engaged in the manufacturing of pharmaceutical products, medical devices and high-tech products (Electronics, High precision components, Optical products, OEM, Technical textiles)
  • Investment Tax Credit of 5% per year for investment in high-tech manufacturing equipment. Beneficiary companies may opt to deduct from their tax payable, 5% of the amount so invested per annum for 3 consecutive years, right from the year the investment is It will be in addition to the normal depreciation provision. Any unrelieved tax credit may be carried forward for a period of 5 consecutive income years following the year the investment is made.
  • Accelerated depreciation of 50% on machinery, equipment and construction of industrial premises dedicated to manufacturing activities
  • Accelerated depreciation of 50 % per annum on capital expenditure incurred on R&D
  • Companies can claim a double deduction in respect of qualifying expenditure on R&D until income year 2021-2022.
  • No Registration Duty and Land Transfer Tax on any transfer of a building or land earmarked for the construction of a building, to be utilised for setup of qualifying high-tech manufacturing activities
  • Exemption from payment of land conversion tax for the setting up of industrial enterprises

Fiscal incentives for developing and investing under the Smart City Scheme 

• A company investing in the development of a smart city and/or its components is exempted from payment of:
  • • Income Tax for a period of 8 years from the issue of the SCS Certificate provided that the income is derived from an activity pertaining to the development and sale, rental or management of immovable property other than an activity in respect of the supply of goods and services.
    • Value Added Tax paid on capital goods (building, structure, plant, machinery or equipment).
    • Customs duty on import or purchase of any dutiable goods, other than furniture, to be used in infrastructure works and construction of building within the Scheme
    • Land Transfer Tax and Registration Duty on transfer of land to a SPV provided that the transferor holds shares in the SPV equivalent to at least the value of the land transferred
    • Land Conversion Tax in respect of the land area earmarked for the development of non- residential components (office and business parks, ICT and innovation clusters, touristic, leisure and entertainment facilities including hotels and golf courses, renewable energy and green initiatives)
  • • Morcellement Tax for the subdivision of land.

Source: Economic Development Board (EDB Mauritius).