Mauritian Economy

Economically speaking, this tiny island paradise has one of the highest per capita incomes in the entire region of Africa and the Indian Ocean, while the capital, Port Louis, is the second largest financial trading center in the region. Its political stability and ethnic tolerance make this one of the most attractive places to invest.

If asked, the majority of people would probably say that sugar-cane was the largest economic sector in Mauritius. While nearly 90% of all cultivated land is devoted to the sugar cane crop, it accounts for only a quarter of all export earnings. In the 17th century the economy was entirely dependent on sugar, hence the large number of slaves brought from Africa to work in the plantations. Even as late as the 1960s, long after the abolition of slavery, Mauritius was still reliant solely on sugar and had to import goods for local consumption.

In 1971, Mauritius established Export Processing Zones, known as EPZs, in order to encourage the production of goods for export. To this end, Mauritius imports semi-finished goods duty-free. The goods are then completed in Mauritius and are re-exported. Unsurprisingly, the EPZs have been a magnet for large amounts of foreign investments and, as they deal mainly in clothing and textiles, the textile industry is now one of the main sectors of the economy. Brand name clothing such as Boss and Hilfiger is manufactured in Mauritius for export to Europe and America. With a strict emphasis on quality control and good work ethic, Mauritius now enjoys a sound reputation for textiles all over the world.

Tourismis obviously another one of the stalwarts of the Mauritian economy. With an almost unbroken coral reef, warm, blue tropical water, white sand beaches and the natural hospitality of the people, it is no wonder that so many people, mainly from Europe and South Africa, flock there every year. In recent times, furthermore, eco-tourism has been given priority by the government to help preserve the natural beauty of the island.

Offshore investments are another large contributor to the Mauritian economy, with commerce being aimed mainly at India and South Africa. Offshore business is a relatively recent newcomer to the economy as it only became active in 1992 when the Mauritian Offshore Business Activities Act was passed.