Mauritius
In-depth country-focused analysis on Mauritius's economic, political and operational risk environment, complemented by detailed sector insight

Our comprehensive assessment of Mauritius's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Mauritius, as well as the latest industry developments that could impact Mauritius's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Mauritius before your competitors.

Country Risk

Mauritius Country Risk

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  • We forecast that real GDP growth in Mauritius will accelerate in 2015, bolstered by falling oil prices and a recovery in investment. Our forecast of 4.6% growth is a significant upward revision from our previous forecast of 4.2%. This reflects the changes wrought by the halving in the price of oil and the grand development plans being laid out by the newly elected government which came to power in December 2014. It is also far stronger than the preliminary 3.5% growth the Mauritian statistics office has announced for 2014 - which is in line with our estimates - and reflects the strongest expansion rate since 2008.

  • We forecast a cumulative hike of 50 basis points to Mauritius's Key Repo Rate in 2015. Although inflation remains low, concerns over saving levels will see rates raised, especially as real GDP growth picks up.

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Mauritius Operational Risk Coverage (9)

Mauritius Operational Risk

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Mauritius is one of the most attractive emerging markets in Sub-Saharan Africa. The country has enjoyed sustained economic growth throughout the global financial crisis, giving it an excellent platform for further expansion, with its banking and finance sector and consumer industries providing the best investment opportunities. Foreign direct investment (FDI) is encouraged by the country's political stability and relaxed regulatory regime. Although Mauritius's small geographic and population size limit its market growth and the availability of labour, this also ensures that it is one of the safest countries in the region, with a lack of ethnic tensions, separatist groups or terrorism. In addition, good international maritime connections and internal road links ensure the relatively smooth running of supply chains.

Mauritius has numerous advantages in the areas of conducting business, workforce education levels, crime and...

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Mauritius Crime & Security

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Mauritius is an attractive option for investors looking for an environment unencumbered by high crime rates, although the risk of international conflict or terrorist activity is slightly elevated. Mauritius has an advantage in that South Africa, the region's key economic power, suffers from extremely high crime rates, which by comparison makes Mauritius a much safer option for those looking to invest in the region. Mauritius boasts low crime rates, and it is placed first in the region for Criminal Risk in BMI's Crime and Security Risk Index. However, the country's scores for Interstate Security Risk and Terrorism Risk detract from its overall score. Mauritius scores 49.8 out of 100 in the Crime and Security Index, placing it 11th out of 44 countries in Sub-Saharan Africa.

Perhaps the greatest threat to investors regarding crime is that of cybercrime, which is on the increase in African countries...

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Mauritius Labour Market

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Mauritius performs strongly in Sub-Saharan Africa for Labour Market Risk, largely due to its performance on educational access and quality, resulting in a well-educated, literate and numerate workforce. Mauritius's ranking is lowered, however, by the small size of the labour force, as well as a lack of investment in tertiary level education, which lowers the availability of highly skilled workers. Overall, we give Mauritius a score of 48.1 out of 100 for Labour Market Risk, just ahead of Nigeria and South Africa regionally (which score 47.7 and 47.5 respectively).

Risks to availability of labour stem from the diminutive size of the Mauritian labour force and low female labour market participation, which combine to minimise the size of the labour market considerably and increases the risks to investors reliant on a large workforce. The recent rapid expansion of the Mauritian services sector, which requires a high number of skilled...

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Mauritius Logistics

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BMI View: Mauritius is a Sub-Saharan Africa (SSA) logistics outperformer. The country's open economy and successful diversification strategy has allowed it to emerge from the global financial crisis in a better position than many of its peers. In addition, supply chains in the country benefit from a high-quality transport network, and business generally will benefit from widespread availability of utilities. Mauritius's efficient and low-cost trading processes also make it an attractive investment prospect. Consequently, the country is placed first in the SSA region out of 44 states in the BMI Logistics Risk Index, with a score of 60.7 out of 100....

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Mauritius Trade & Investment

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BMI View: Built upon decades of economic and political stability, the Mauritian economy has diversified away from its historical reliance on sugar exports into a variety of manufacturing and service industries, including textile production, tourism and banking. These assets, in combination with comprehensive government reforms in trade, investment, tax and fiscal policies make Mauritius a highly attractive site for investors. Consequently, Mauritius is the outperformer in Sub-Saharan Africa by some margin, scoring 71.7 out of 100, above regional competitor South Africa in second place with a score of 65.3 out of 100.

The government's pro-market policies are one of the country's greatest assets, illustrated by limited barriers to trade, a strong rule of law and a sophisticated financial market. Mauritius performs particularly strongly in terms of its lack of bureaucratic...

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Mauritius Industry Coverage (5)

Commercial Banking

Mauritius Commercial Banking

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Commercial Banking Sector Indicators
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits

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Insurance

Mauritius Insurance

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BMI View: The Mauritian insurance market is small by global standards but well established, with a particularly high penetration rate in the life sector. Both life and non-life insurance is expected to record healthy premium growth throughout our forecast period to 2019. Domestic economic growth in Mauritius will drive an expansion of household consumption and in turn demand for non-life products, such as motor and property insurance, and life products, including retirement savings plans, will rise.

2015 will see the continued dominance of the life insurance sector, which accounts for around 70% of gross insurance premiums written in the country. Mauritius has a strong tradition of life savings products, including retirement/pension plans, and as such life insurance penetration is already high (at 4.5% of GDP). Growth in 2015 will largely be...

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Pharmaceuticals & Healthcare

Mauritius Pharmaceuticals & Healthcare

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BMI View : With high per-capita pharmaceutical expenditure and a stong governmental interest in pharmaceutical development, combined with a rising demand for non-communicable and chronic disease therapies, Mauritius plays host as an attractive destination for future growth - although the destination still remains relatively untouched on a local level.

Headline Expenditure Projections

Pharmaceuticals: MUR6.01bn (USD196mn) in 2013 to MUR6.48bn (USD214mn) in 2014; 7.78% growth in local currency terms.

Healthcare: MUR17.44bn (USD567mn) in 2013 to MUR18.46bn (USD610mn) in 2014; +5.8% growth in local currency terms.

Key Trends And Developments

It was announced in October 2014 that...

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Telecommunications

Mauritius Telecommunications

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BMI View : BMI's Q115 Southern Africa report analyses the latest industry, regulatory and macroeconomic developments in the telecoms markets in Angola, Botswana, Mozambique, Mauritius and Namibia. It also contains analysis of the latest market data relating to the end of September 2014 and an update of our five-year forecasts to 2018 for the mobile, fixed-line and internet sectors.

Key Data

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Tourism

Mauritius Tourism

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BMI View: The tourism industry in Mauritius is currently very strong and is set to continue to improve over our forecast period. The sector is well-established and through good management practices and regulation, and due to a stable political environment, all aspects of tourism within the country are seeing some growth. A strong hotel and restaurant industry and small but steady growth in both inbound and outbound travel means the sector represents a positive potential investment opportunity.

Although arrivals to Mauritius are forecast to increase, it is likely that the increase will be somewhat limited. Total arrivals will go from 1.01mn in 2015 to 1.08mn in 2019, with a definite decline in arrivals from a number of key European sources such as...

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