The EDB is actively supporting the twin objectives of green transition and the digitalisation across industries, both crucial steps in reshaping our economic landscape as we navigate through the complexities of the global market.
The global economic outlook for 2024 indicates a period of moderated growth and heightened uncertainty. The World Bank projects a slowdown to 2.4% growth, marking the third consecutive year of deceleration, influenced by tight monetary policies, restrictive credit conditions and sluggish global trade and investment. The IMF forecasts global growth at 3.1% for 2024, with risks to growth being broadly balanced. Inflation is expected to decline, with global headline inflation projected to fall to 5.8% in 2024.
OECD Foreign Direct Investment (FDI) projections for 2024 suggest a cautious optimism for stabilization or even a positive trend, particularly in regions like the Middle East and Africa, which are among the fastest growing in terms of inbound greenfield FDI.
For Mauritius, the forecast is promising, with an expected GDP growth of 6.5%, buoyed by diverse sectors including construction, tourism, transport, financial services and Information and Communication Technology (ICT). Strategic public sector investments and favourable outlook for private investments are likely to support economic activity. The IMF's February 2024 country report for Mauritius underscores our robust economic health, economic fundamentals and strategic initiatives to position the country for continued growth and resilience.
The ICT sector remains a strong driver of growth and the sector has always shown resilience to global economic shocks. The sector grew by 6.6% in 2023 and employs approximately 33,500 professionals.
The digital revolution that is currently underway is the next economic shift the world is undergoing. Like the agricultural revolution and the industrial revolution in the past, the digital revolution will bring significant economic, social and environmental impacts - some of these trends have recently begun to emerge.
The largest and most dominant companies in the world today are all tech companies contributing to the digital economy. Mauritius is no exception. As the world’s top cities and economies all look to develop their tech industries to ensure future economic dominance, there are a few fundamental requirements that the EDB has been focusing on to create a rich ecosystem conducive to technological advancement and international business. First and foremost, is the ability to attract and retain top tech talent, which requires a high quality of life, an ease to doing business, strong economic drivers, and a burgeoning tech ecosystem with access to capital.
The EDB will participate in the VIVA TECHNOLOGY event, in May 2024, to attract tech startups and is working to nurture our youth into becoming the next generation of trailblazers in the ICT sector. Our ecosystem is ripe with opportunity, boasting advanced technology parks and a robust innovation infrastructure in Smart Cities.
Within this whole development paradigm, we cannot overlook the fact that our talent is our biggest differentiator, and the focus must be on ensuring that talent remain relevant aligned with the accelerating pace of technology.
In recent years, Mauritius has emerged as an attractive destination for global companies seeking to establish key operation centres. In 2022, Amazon made a strategic move by setting up its virtual call centre catering to the French market and in 2023, Alludo (ex-Corel Corporation) made a significant investment by establishing its software development and R&D Centre in Mauritius.
A significant event that has unfolded this month is the hosting of the World Alliance of International Financial Centres (WAIFC) Spring Board Meeting and Extraordinary General Meeting in Mauritius. With its strong 20-jurisdictions' membership spanning across continents, the WAIFC is the primary global platform to discuss key issues like the role and relevance of financial centres, global regulations, and cross-fertilization of financial sectors with other sectors of activities, such as art and artificial intelligence. With delegates from various regions convening in Mauritius, the meetings provided opportunities for fruitful discussions as well as engagements with Mauritius-based stakeholders.
Against the backdrop of global concerns about financial centres, the hosting of the WAIFC offered Mauritius a valuable opportunity to demonstrate its growing role in the international financial landscape, and marked a moment of recognition for Mauritius' dedication to transparency, innovation, and sustainable growth in the financial sector.
As we cast our gaze to the horizon, we see Generative-AI, Computing Power, Datafication, Extended Reality, New Energy Solutions and Digital Twins as beacons of our ICT aspirations. These are the domains where global FDI is flowing, and Mauritius is poised to claim its share. Our goal is ambitious yet attainable: to carve out a significant presence in the global IT and innovation market.
In the same vein, the forthcoming AI Summit organised by the Mauritius Emerging Technologies Council (METC) and the Ministry of Technology and Innovation on 8-9 May 2024 together with EDB aims to define the new era of tomorrow with AI and provide with a unique opportunity for policy dialogue and collaboration.
The call to innovate and adopt new technologies is not just a competitive strategy but a necessity for survival in the global marketplace. Let us embrace the winds of change, for they bring with them the seeds of innovation and progress. Together, we will chart a course towards a future where technology is our strength, innovation our legacy and Mauritius a shining example of digital prowess.
