Dear Valued Readers,
On May 25th, 2024, we celebrated Africa Day, which also marked the 61st anniversary of the foundation of the African Union. For Mauritius, a member state since gaining independence in 1968, this celebration holds significant meaning, affirming our deep historical, cultural and geographical connections with the African continent.
Africa, renowned for its cultural diversity, natural wonders and historical significance, represents a wealth of opportunities for trade, investment, and sustainable development. Over the years, the continent’s GDP has seen remarkable growth, surpassing USD 3 trillion in 2022, with a market size of USD 2.97 trillion and a population of 1.4 billion. This economic transformation mirrors that of India, highlighting Africa’s potential as a global economic force.
This is the result of considerable efforts deployed over the years across the 54 African nations to transform the continent into an economic powerhouse. These endeavors substantially improved the business climate, attracted both domestic and foreign investment, increased economic diversification, bridged infrastructure gaps, and improved governance.
Similarly, Mauritius has evolved beyond its scenic beauty, gaining recognition as a resilient and diversified economy. Through inclusive and sustainable development initiatives, Mauritius has become a preferred destination over the past three decades.
The economic resurgence witnessed in Mauritius over the last two years following the pandemic serves as a testament to its resilience. This recovery is not only a reflection of the country’s sturdy economic framework but also underscores the significance of its strong ties with African nations. For instance, Mauritius has an extensive network of Double Tax Avoidance Agreements (DTAAs) and Investment Promotion and Protection Agreements (IPPAs), of which, 22 treaties were signed with African countries and nearly 24 countries on the continent having agreed to protect investments through an IPPA.
The Mauritius International Financial Centre (MIFC), which is one the few African IFCs to bear the Investment Grade status, is hailed as a bridge connecting global investors with the underlying opportunities of the continent by facilitating cross border investments. Notably, Mauritius has attained a perfect score on the FATF’s forty recommendations, a feat achieved by only six jurisdictions to date.
The cumulated investment channeled into Africa through the MIFC exceeds USD 120 billion, representing 9% of total foreign direct investment into the continent. Furthermore, in addition to the DTAAs and IPPAs with African countries, Mauritius is a pioneering member of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), as well as party to the African Continental Free Trade Area (AfCFTA), which came into force in 2021.
All these place Mauritius as a place of choice for trade and business.
As evidence, on the trade front, from 2012 to 2022, the nominal value of exports to Africa have increased by over 77% from MUR 14 billion to reach MUR 24 billion. Africa is the second main market of Mauritian exports with a share of 29% in 2022 and 2023 respectively compared to 20% in 2012.
Additionally, with its expertise and competencies across a range of industries, Mauritius emerged as an outward investor onto continental Africa since the early 1990s. Mauritian businesses and operators are now present in over 20 African states. The overall outward investment flows from Mauritius into Africa from these Mauritian companies (excluding global business) stands at Rs 39 billion from 2010 to 2023, accounting for 56% of the cumulated total outward investment from Mauritius during that period.
Conversely, FDI from Africa into Mauritius represents 18% of the overall total from 2010 to 2023, spread across hospitality, financial services, healthcare and real estate sectors primarily. In addition, African tourists represent the second main market for Mauritius averaging 21% of the yearly total over last two years (2022 & 2023), while there is also an ever-increasing number of African students (>2,000) coming to Mauritius to study in international schools and universities present here. Moreover, our island is home to some 3,000 African expats living, working as well as investing in Mauritius through our panoply of occupation and residence permits.
The EDB, in its role of affirming Mauritius as a gateway to Africa, pursues a recurrent and robust promotional strategy. In addition to hosting international events in the island, multi-sector promotional roadshows are organized across targeted countries to showcase the avenues and opportunities of investing in Mauritius and evidently, using the jurisdiction as an investment platform for Africa.
All this being said, the deep-rooted relationship between Mauritius and Africa remains steadfast, even amidst challenges. Africa’s resilience, coupled with climate action and green transitions, will drive inclusive and sustainable development across the continent and Mauritius, in its unique position, will continue to play its part in helping to shape Africa's economic trajectory, promoting mutual growth and shared prosperity.
Ken Poonoosamy
Chief Executive Officer
Economic Development Board
