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.

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.

The economy of Mauritius is now based on the following six main pillars:

• Agriculture
• Manufacturing
• Tourism
• Financial Services
• ICT (Information & Telecommunication Technology), and
• Seafood Hub

Agriculture Sugar was, until now, a very important sector of the economy. Its production averages 650,000 per year and is exported to the European Union at preferential rates through the ACP/EU Sugar protocol and Special Preferential Sugar (SPS). However, the European Union has decided to reduce gradually the guaranteed as from 2007. The twin effects of reduction in guaranteed export price and rising costs of production have led to the elaboration of a plan to centralize and automate activities and diversification of sugar related activities, like ethanol.

Manufacturing Manufacturing sector comprises the EPZ (Export Processing Zone) and domestic production, and account for 22.7% of GDP and 28.9% of total employment in 2001.

Apparel is the leading product in the EPZ sector, (242 out of 524 EPZ enterprises), in 2001. Other products in the EPZ sector are flowers, textile yarn, and fabrics, wood and paper products, jewelry and related articles.

Following the successive Lome Conventions, Mauritian textile and clothing products enjoyed quota free and duty free access to the EU market. With the phasing out of the Multi-Fibre Agreement (MFA) in December 2004, the textile sector is competing on a level playing field with its competitors.

Apparel made in Mauritius has quota free access, and apparel produced from local, regional or US yarn is duty free, to the US market.

Tourism Tourist arrival has increased by 17 fold from 1980 to 2005 – 45,080 arrivals in 1980 compared to 761,063 in 2005.

The total number of rooms in 2005 was 18,414, (hotels – 10,414 and bungalows – 8,000), and the occupancy rate was 63% for hotels and 47% for bungalows.

Mauritius is opening up its sky by allowing Corsair from France and Comair from South Africa to fly in the country. Virgin airways is on the verge to conclude a similar agreement to fly in Mauritius. The forecast tourist arrival in 2015 is 2 million.

Financial Services Mauritius offers a wide range of financial services comprising of:

• Insurance
• Banking
• Capital markets
• Offshore (global business), and
• Freeport activities.

Over the years, specialist agencies with distinct and separate responsibilities have been regulating and supervising the banking, insurance, offshore (global business), and securities businesses. With the emergence of complex activities, overlapping different areas of the financial sector, the Financial Services Commission was created under the Financial Services Development Act 2001 to act as a statutory body on the non banking financial sector.

Information and Telecommunication Technology Mauritius is now poised to become a cyber island and to serve as an info-communications hub in the region.

The vision of an information society dates back to the early 1990s. However, recent top level commitment coupled with the creation of an enabling environment has given Mauritius a new impetus. It is Government's declared policy to make ICT the fifth pillar of the economy alongside sugar, textiles, financial services and tourism.

Seafood Hub The Government is encouraging the development of additional pillars such as the seafood and aquaculture hub, which is one of the most promising new sectors and developing at a fast pace. The Government will do everything to preserve and protect the integrity of the seafood sector, and will crack down on Illegal, Unreported and Unregulated (IUU) fishing including participation in the Regional Indian Ocean Commission Pilot Project to harmonise and update legislation of member states with respect to IUU fishing.

Transport and Communications Efficient and reliable international communication facilities, including direct dialing to most parts of the world, high speed facsimile services, access to major databases worldwide, video conferencing facilities and interactive point to point or multi point service are available in Mauritius.

Mauritius Telecom, the telecommunication service provider, operates a wide range of digital services, thus offering maintenance free systems, high security and capacity, reduced interference, and ISDN (Integrated Service Digital Network) facilities. Access to internet and electronic mail service are also easily available. Mobile telephony services, including GSM and 3G services, are currently provided by two service providers. International roaming service is offered to over 40 countries, especially the country’s main trading and business partners.

Shipping connections to major ports in the Indian Ocean, Africa, Australia, Asia, Europe and United States of America are available. Numerous international shipping companies regularly call at Port Louis harbour, a deep water harbour with drafts varying from 9.45 to 11 metres. The port is divided into six multipurpose quays, two fishing quays, a bulk sugar terminal and a container terminal. Cargo handling as well as transshipment facilities are also provided.

Mauritius has good air connections with most of its export destinations. The Sir Seewoosagar Ramgoolam (SSR) International Airport, located in the south east, is one hour call from Port Louis.

Air Mauritius, the national airline, and other major international airlines offer non stop flights to major cities in Western Europe, Asia, Australia, Africa, and more locally.

Mauritius has a good road network covering the whole island. All roads are paved, regularly maintained and have proper traffic signs.