Mauritius

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

Mauritius

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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Core Views:

  • We forecast modest real GDP growth in Mauritius in 2016 and 2017, bolstered by falling oil prices, expansionary fiscal policy, and a recovery in investment. We forecast growth of 4.2% and 4.4% in 2016 and 2017 respectively, compared 3.2% in 2015.

  • Risks to political stability should be limited in the short-term, as the recently-elected government overseas a period of accelerating economic activity.

  • The government is set to put an emphasis on spurring economic growth ahead of fiscal consolidation, meaning an increase in the budget deficit is likely in the short term. This is unlikely to pose a serious threat to broader economic stability in itself, though higher deficits and rising public debt will leave the country more vulnerable to external shocks or shifts in investor sentiment.

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Mauritius Operational Risk Coverage (9)

Mauritius Operational Risk

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BMI View: Mauritius is one of the most attractive countries to operate in, with a highly developed banking and finance sector and relaxed regulatory regime which encourage foreign direct investment. 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. Overall, Mauritius is in first place out of 48 states in Sub-Saharan Africa (SSA), with a score of 61.2...

Mauritius Crime & Security

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BMI View: Unencumbered by high crime rates, Mauritius is an attractive option for investors looking for an operational environment devoid of major security risks. Nevertheless, the country's strategic position exposes it to the threat of terrorism and international conflict, while the absence of a military sharply increases its vulnerability in the event of an attack. That said, this threat is somewhat mitigated by the high capability of the Mauritian national police, which fulfils the role of both police and military. Other notable sources of risk include a notable increase in financial and cybercrime over the last several years, though government officials are making progress in combating these threats. Consequently, Mauritius is...

Mauritius Labour Market

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BMI View: Mauritius' Labour Market Risk is low by regional standards, largely due to its performance on educational access and quality, resulting in a well-educated, literate and numerate workforce. However, the country's competitiveness is hindered somewhat 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 48.6 out of 100 for Labour Market Risk, in sixth position out of 48 Sub-Saharan Africa (SSA) states, just behind of Nigeria and South Africa regionally.

Mauritius poses a low risk to...

Mauritius Logistics

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BMI View: Mauritius offers a very attractive environment for investors, owing to an outperforming logistics network. 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, with inexpensive and efficient trade procedures. In addition, supply chains in the country enjoy a high-quality transport network, and business generally will benefit from widespread availability of utilities. Consequently, the country is placed first in the SSA region out of 48 states in the BMI Logistics Risk Index, with a score of 62.8 out of 100.

Businesses in Mauritius...

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 73.0 out of 100, above regional competitor South Africa in second place with a score of 64.8 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...

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

Insurance

Mauritius Insurance

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BMI View: Mauritius has one of the most developed insurance markets in the region, particularly in terms of life insurance, which is well established as a conduit for organised savings in the country. The market is home to a range of domestic and regional insurance providers and is open to foreign developers, making it an attractive investment environment. Both the life and the smaller non-life sector are expected to see steady growth in premiums written over our forecast period through to 2019, supported by wider economic growth in the country as well as by diversification of the available product range.

Headline Insurance Forecasts (Mauritius 2012-2019)
2012...

Pharmaceuticals & Healthcare

Mauritius Pharmaceuticals & Healthcare

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BMI View : While population size is low in comparison to other African countries, Mauritius' per capita pharmaceutical spending is higher than any other in the region. However, we do not expect Mauritius' reliance on imported drugs to decrease, even though the government has been encouraging the production of drugs locally. Additionally, export growth will be slow due to the limited capacity of local drugmakers.

Headline Expenditure Projections

Pharmaceuticals: MUR5.76bn (USD188mn) in 2014 to MUR6.17bn (USD174mn) in 2015; 7.2% growth in local currency terms, and -7.5% drop in growth in USD terms.

Healthcare: MUR18.76bn (USD612mn) in 2014 to MUR19.73bn (USD556mn) in 2015; +5.2% growth in local...

Telecommunications

Mauritius Telecommunications

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BMI View : BMI 's 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 our estimates based on the latest market data and updated five-year forecasts to 2020 for the mobile, fixed-line and broadband sectors. From the five states, Mauritius and Mozambique stand out as dynamic and higher performing markets in terms of penetration and 3G/4G developments along with growth rates.

Latest Updates & Industry Developments

  • Important downward revisions were made to Angola's...

Tourism

Mauritius Tourism

BMI View:

BMI View: Economic growth in key European and Asia Pacific source markets support our forecasts for steady growth in terms of inbound tourism arrivals to Mauritius over the forecast period to 2019. As visitor numbers increase we should see concurrent growth in hotel and restaurant industry value which is encouraging for investors in this sector. Another positive indicator is the government's extensive support for, and investment in, tourism industry growth via wide reaching marketing campaigns and development of a greater range of air travel connections.

Key Forecasts (Mauritius 2012-2019)
Indicator 2012 ...

Latest Mauritius Articles

  • With global growth continuing to stutter amid unconvincing growth performan...

  • A few key themes stand out when comparing BMI's forecasts against Bloomberg...

  • We have upgraded our oil price forecast this month with markets having pric...

Latest Mauritius Blogs

Latest Mauritius Podcasts

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