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A

Global Country Report on

Mauritius-module1

Submitted to

NARMADA COLLEGE OF MANAGEMENT,

BHARUCH

Affiliated to

GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD.

In partial fulfillment of the

Requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

Submitted to:

Mrs chetna makvana

Submitted By

SHAMSHA VIRANI(1026)

NIMESH CHAVDA(1049)

HIMANSHU PATEL (1057)

MARGARET RATHODH(1042)

MITESH RAJPUT (1044)

JUHI AGRAWAL(1010)


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Introduction

Despite its small land area and population of only 1.18 million, Mauritius, strategically

located between Africa, Asia, and the Indian sub-continent, is one of the few Africaneconomic success stories, with an annual growth rate of 5% and GDP per capita of$3,600. Since gaining independence in 1968, Mauritius has transitioned from a low-income, mono-agricultural sugar-based economy to a more diversified, export-drivenmiddle-income country, unlike most of its fellow African states. The government remainsstrongly focused on increasing and diversifying exports and securing foreigninvestment. The Export Processing Zone (EPZ), established in the 1970s, todayaccounts for 70% of the countries' exports, which are predominantly textiles and alsoinclude food, jewelry, electronics and engineering; 12% of its GDP; and employs 30% ofthe workforce.

Its record of political stability and democracy has provided an attractive businessclimate for foreign investment, and tourism and services have also grown in the wakemanufacturing and industry. Its modern port, airport and telecommunications links havebrought the country to the attention of the international community both as a strategicarea for investment and as a well-positioned leader to help facilitate African economicgrowth.

1. Demographic profile of Mauritius

Demographics are the most recent statistical characteristics of a population. These

types of data are used widely in sociology (and especially in the subfield of

demography), public policy, and marketing. Commonly examined demographics include

gender, race, age, disabilities, mobility, home ownership, employment status, and even

location. Demographic trends describe the historical changes in demographics in a

population over time (for example, the average age of a population may increase or

decrease over time). Both distributions and trends of values within a demographic

variable are of interest. Demographics are about the population of a region and the

culture of the people there.

Demographic profile of Mauritius

Population 1,303,717 (July 2011 est.)

Age structure 0-14 years: 21.8% (male 145,185/female 139,579)15-64 years: 70.7% (male 457,743/female 463,875)65 years and over: 7.5% (male 38,944/female 58,391)(2011 est.)


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Population growth rate 0.729% (2011 est.)

Birth rate 13.97 births/1,000 population (2011 est.)

Sex ratio 0.97 male(s)/female

Religions Hindu 48%, Roman Catholic 23.6%, Muslim 16.6%, otherChristian 8.6%, other 2.5%, unspecified 0.3%, none 0.4%(2000 census)

Languages: English (Official), French, Mauritian Creole, Hindi, Tamil,Marathi, Bhojpuri, Hakka.

Literacy Total population: 84.4%Male: 88.4%, Female: 80.5%

Life expectancy at birth: Total population: 74 years

Male: 70.53 years, Female: 77.65 years (2010 est.)

2. Economic Overview

Mauritius has witnessed a massive development in the last decades. From a

monocrop economy, depending mainly on sugar, it has diversified its economic

activities into, textile and apparel industry, tourism and financial services.

The country is equipped with a highly skilled labour force and a very good

infrastructure thereby attracting Foreign Direct Investment. The average economic

growth was 5.6% over the last 3 years. The income per Capita has reached 4000 US

Dollars. As a result the standard of living has gone up. The country has now a life

expectancy rate of 71.4yrs, an adult literacy rate of 83%.

To face globalisation and a new economic environment, the Government has

taken several steps. High value-added, capital intensive and knowledge-based activities

are on the priority list. The Information Technology sector is undergoing rapid changes

so as to be fit for the next millennium. The aim is to make Mauritius a centre for high-

tech and software services, which can be exported.

The other sectors namely Tourism, Textile, Agriculture and Financial services are

also undergoing changes in a positive direction.


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Since independence in 1968, Mauritius has developed from a low-income,

agriculturally based economy to a middle-income diversified economy with growing

industrial, financial, and tourist sectors. For most of the period, annual growth has been

in the order of 5% to 6%. This remarkable achievement has been reflected in more

equitable income distribution, increased life expectancy, lowered infant mortality, and a

much-improved infrastructure. The economy rests on sugar, tourism, textiles and

apparel, and financial services, and is expanding into fish processing, information and

communications technology, and hospitality and property development. Sugarcane is

grown on about 90% of the cultivated land area and accounts for 15% of export

earnings. The government's development strategy centers on creating vertical andhorizontal clusters of development in these sectors. Mauritius has attracted more than

32,000 offshore entities, many aimed at commerce in India, South Africa, and China.

Investment in the banking sector alone has reached over $1 billion. Mauritius, with its

strong textile sector, has been well poised to take advantage of the Africa Growth and

Opportunity Act (AGOA).

GDP (2008, official exchange rate): $8.128 billion.

Real growth rate (2008): 5.2%.

Per capita income (2008, purchasing power parity): $12,100.

Natural resources: None.

Agriculture (4.5% of GDP): Products--sugar, sugar derivatives, tea, tobacco,

vegetables, fruits, flowers, cattle and fishing.

Manufacturing, including export processing zone (19.4% of GDP): Types - labor-

intensive goods for export, including textiles and clothing, watches and clocks, jewelry,

optical goods, toys and games, and cut flowers.

Tourism sector (8.7% of GDP): Main countries of origin--France, including nearby

French island Reunion, South Africa, and west European countries.

Financial services:10.9% of GDP.

Industrial production growth rate: 4.5% (2008 est.)

Trade: Exports (2008 est.) - $2.36 billion f.o.b.: textiles and clothing, sugar, canned


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tuna, molasses, watches and clocks, jewelry, optical goods, travel goods and handbags,

toys and games, and flowers.

Major markets--Europe and the U.S. Imports (2008 est.)--$4.503 billion f.o.b.:

manufactured goods, capital equipment, foodstuffs, petroleum products, chemicals,

meat, dairy products, fish, wheat, rice, wheat flour, vegetable oil, iron and steel, cement,

fertilizers, and textile industry raw materials.

Major suppliers--India, China, South Africa, France, Japan, Spain, Italy, Germany,

Malaysia, and Thailand.

Partners: EC, US, S.Africa, Japan .

Electricity - production: 2.321 billion kWh (2007 est.)

Electricity - consumption: 2.058 billion kWh (2006 est.)

Fiscal year: July 1-June 30.

Commodities: manufactured goods 50%, capital equipment 17%, foodstuffs 13%,

petroleum products 8%, chemicals 7%.

Industries: Food processing (largely sugar milling), textiles, wearing apparel,

chemicals, metal products, transport equipment, tourist.

Labour force by occupation: agriculture and fishing (14%), construction and industry

(36%), transportation and communication (7%), trade, restaurants, hotels (16%),

finance (3%), other services (24%) Poverty levels estimated 37.6% of total population to

be reduced to around 30% by 2010 and 25% by 2015.Exports: $2.36 billion f.o.b. (2008

est.)

Exports - commodities: clothing and textiles, sugar, cut flowers, molasses, fish.

Exports - partners: UK 35.1%, France 14.4%, US 7.7%, Madagascar 6.3%, Italy 5.8%

(2007)

Imports: $4.503 billion f.o.b. (2008 est.)

Imports - commodities: manufactured goods, capital equipment, foodstuffs, petroleum

products, chemicals

Imports - partners: India 21.2%, China 11.4%, France 10.7%, South Africa 7.4%

(2007)

Currency: 1 Mauritian rupee (Rs. 1.00) = 100 cents.

Exchange rates: Euro 1.00 = Rs. 43.5


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Figure 1 Economic rate

3. OVERVIEW OF INDURSTRY TRADE AND COMMERCE

Minister of Industry, Commerce and Consumer Protection

Industrial development in Mauritius expanded rapidly after 1971, when the government

established EPZs. In return for tax benefits, duty-free imports of raw materials and

machinery, and other inducements, the owners of EPZ enterprises agree to export all

their products. In the first year of operation, nine EPZ firms employing 644 persons

accounted for 1 percent of export earnings. In 1992 a total of 568 EPZ enterprises

employing 89,949 persons produced such items as flowers, furniture, jewelry, and

leather goods. The EPZ rate of growth of employment and foreign exchange earnings

slowed in the 1980s and early 1990s. However, the value of EPZ exports in 1993 set a

record of MauR15.8 billion.

CONTROL OF IMPORTS


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A control on the importation of certain goods is exercised under the Consumer

Protection (Control of Imports) Regulations 1999 (Government Notice No.135 of 1999).

An import permit is required from the Import Division of the Ministry in respect of goods

appearing in the First Schedule to the Regulations. Goods that are prohibited are listed

at the Second Schedule to the Regulations. The types of restriction imposed on certaingoods are set out at the Fourth Schedule to the Regulations. Import permits for certain

items appearing in the First Schedule are issued under certain specific

conditions. These conditions are specified in the Fifth Schedule to the Regulations.

On 2nd July 2001, the Trade Net Phase 5 System, which involves the electronic

submission of applications, issue of Import Permits and clearance of controlled goods at

the Customs, was introduced under the provisions of Regulation 11 (A) of G.N. 135 of

1999.

4. DIFFERENT ECONOMIC SECTORS OF THE COUNTRY

A resilient Mauritius, boosted by reforms from 2006 and a strong private sector,

weathered both the global recession and the financial crisis to continue registering

growth rates; albeit low, during the last two years. The worst being most likely behind,

we expect a pick-up in activities across the board thereby leading to an estimated 4%

GDP growth rate for 2011. Our stance is slightly more conservative than the CSOs

4.2% forecast.

a. Manufacturing

Growth in manufacturing stagnated at around 2% in 2010 despite a positive growth in

textiles compared to a contraction the year before. A priori this suggests a weaker

performance by Domestic Oriented Enterprises (DOE) which is somewhat in-line with

the mixed financials reported by Official/DEM stocks in November

b. Financial Services

In spite of a large drop in growth (post-Lehman collapse), this sector has maintained its

share of GDP at ~10%. Bankssuffered due to a slowdown in the broader economy and

increased impairments; the SEM recorded foreign disinvestment; and global

businesses endured a slowdown in incorporations and a weak USD. In-line with the

anticipated economic pick-up, albeit at a slow pace, both banks and the offshore sectors

are set to note improvements


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This sector has been steadily in decline from its double digit growth rates in 2007 and

2008. 2007 represented the peak in the rush to IRS/RES, the building of sky-scrapers in

Ebne, and also the renovation/construction of hotels.

c. Tourism

Tourist arrivals for 2010 surpassed our May forecasts and set a new record.

Nevertheless, the sectors 3.7% growth rate as per the CSO, was puzzling given that

ALL listed hotels/hotel groups disclosed drops in turnover. The industry has had to

adjust to a new reality: guests with a reduced budget, lower room rates, and a

nondepreciating MUR. Based on recent trends, despite the recent reputational damage

incurred, we believe 2011 arrivals will be higher thus leading to better numbers in the

short term. However, in the medium term, the diversification into new markets could

prove to be a winner for the sector.

d. Agriculture

Traditional domestic sugar policy has been to secure steady long-term revenue over

short-term windfall gains. This strategy having paid off, is why the present agreement

with Sdzucker results in a guaranteed floor price of 355/t along with a sharing

agreement for the windfall from higher European market prices. Ergo, the sectors

relatively low 2% 2010 growth rate in spite of surging world sugar prices. 2011,

however, is presently plagued with limited visibility primarily due to weather conditions:

a prevailing severe drought against sporadic flash flooding, which could limit additionalgains due to a probable low yield.

e. Seafood sector

The Mauritius seafood sector is more buoyant than ever and has the ideal conditions to

attract further investments. The sea food sector has already attracted international

seafood players from countries like Spain, Malaysia, Japan, USA, Sri Lanka and France

and received investments of over MRU* one billion in 2006 . The strategy of the seafood

hub is focused on the development of value added fisheries and seafood related

sectors. In line with this strategy, investment opportunities in the following areas are

encouraged: fishing, tuna transshipment, seafood processing activities, aquacultureplus ancillary services (including ship chandling, bunkering, vessel husbandry, ship

agency, ship building and repair and net assembly and repair.

f. Logistics and Distribution The Freeport Sector


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The Mauritius Freeport is a commercial free zone which covers a surface area of more

than 120, 000 square metres in the vicinity of the port and of the airport. The

infrastructure includes dry warehousing spaces, cold rooms, processing units and

business centres built according to stringent international norms and supported by

highly efficient and costeffective logistical facilities. The cold storage facilities are the

largest in the Indian Ocean.

The Freeport sector has the ambition of transforming Mauritius into a regional hub

between Asia and Africa. Goods transiting through the Freeport of Mauritius are

exempted from customs duties. Bulkbreaking, reassortment, processing and assembly

can be carried out in the Freeport before the products are reexported to the Southern,

East African and Indian Ocean markets.

Significant opportunities exist for exportoriented enterprises to use the Freeport for

trading activities. Other opportunities include ship building, ship and airplane repair,

maintenance and storage of empty containers, quality control and inspection, freightforwarding and the development of logistics for leasing operations.

g. Biomedical Industry

Mauritius has the ambition of becoming a centre of excellence in the hightech medical

and biotechnology fields. Recent developments in this sector include a joint venture

between Indias Apollo Hospitals and local investors to launch a multispeciality

healthcare centre and the acquisition of a stake in a major clinic by Fortis Healthcare,

an international group.

5. Global business in Mauritius

Through the adoption of best international practice in laws and regulations, Mauritius

has, over the last fifteen years, quickly matured into a respected international financial

services centre. The country has forged a solid reputation as a reliable jusrisdiction

based on sound regulatory practices and a conducive business environment. This is

evidenced by the increasing number of enterprises registered in Mauritius and the

network of double taxation treaties based on the OECD model.

Global Business companies: - There are two types of global business companies that

may be set up in Mauritius: Category 1 Global Business Company and Category 2

Global Business Company. Both type of companies are set up under the Companies

Act 2001 and licensed under the Financial Services Development Act 2001. Thus, a

qualified global business is defined under the Financial Services Development Act


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(FSDA) 2001 as a corporation holding either a Category 1 or a Category 2 Global

Business Licence.

Category 1 Global Business Licence: - A Global Business corporation (Category 1) is acorporation which undertakes any of the following activities listed in the Second

Schedule of the FSDA 2001 which is carried on from within Mauritius with persons all of

whom are resident outside Mauritius and which is conducted in foreign currency:-

Aircraft financing and leasing

Assets management

Consultancy services

Employment services

Information and Communication technologies

Insurance

Licensing and franchising

Logistics and marketing

Operational headquarters

Pension funds

Shipping and shipping management

Trading

Any other activity as may be approved by the Commission

It is qualified to take protection of the tax treaties to which Mauritius is a party if it comes

within the definition of a resident under the taxation laws.

Category 2 Global Business Licence:- A Category 2 Global Business Licence company

is a Global Business which is carried on by private company with the following features:

The company is incorporated and registered under the Companies Act 2001


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The company does not conduct business with persons resident in Mauritius nor

conduct any dealings in Mauritius currency

The company holds a Category 2 Global Business License.

The company is exempt from the provisions of the Income Tax Act and is

declared as a non-resident for tax purposes.

6. India-Mauritius relations

Diplomatic relations between India and Mauritius were established in 1948. Mauritius

maintained contacts with India through successive Dutch, French and British

occupation. From the 1820s, Indian workers started coming into Mauritius to work on

sugar plantations. From 1834 when slavery was abolished by the British Parliament,

large numbers of Indian workers began to be brought into Mauritius as indentured

labourers. November 2, 1834 marks the day when the ship Atlas docked in Mauritius

carrying the first batch of Indian indentured labourers. This day is now observed inMauritius as Aapravasi Day. In all, about half a million Indian indentured labourers are

estimated to have been brought into Mauritius between 1834 and the early decades of

the 20th century, out of whom about two-thirds settled permanently in Mauritius.

Influence of Indian National Movement: A brief stopover by Mahatma Gandhi en route to

India from South Africa (October 29 to November 15, 1901), while awaiting departure of

his ship SS Nowshera, is still etched in the consciousness of Mauritius. Barrister

Manillal Doctor, who came to Mauritius in 1907 on the suggestion of Gandhiji, helped

the Mauritian Indian community to organise themselves and laid the foundation for their

struggle for political and social rights. As a tribute to Gandhiji and the Indian freedom

struggle, the National Day of Mauritius is celebrated on March 12 every year (the dateon which the Dandi Salt March was launched). In November 2001, a commemorative

Rs 100/- silver coin was released on the occasion of the 100th Anniversary of the

Gandhijis arrival in Mauritius.

Bilateral Agreements with Mauritius:

India and Mauritius have signed several bilateral agreements. Some of the important

agreements are the Double Taxation Avoidance Convention (1982), Bilateral

Investment Promotion and Protection Agreement (1998), Air Services Agreement (1972;

amended in 1995), Agreement for Cooperation in Information Technology (2000), MOUon Cooperation in Biotechnology (2002), Extradition Treaty (2003), MOU on

Cooperation against Terrorism (2005), MOU on Cooperation in the field of Environment

(2005), Mutual Legal Assistance Treaty in Criminal Matters (2005), Agreement on the

Transfer of Sentenced Persons (2005), MOU for Cooperation in the field of

Hydrography (2005), MOU for Cooperation on Consumer Protection and Legal

Metrology (2005), MOU for setting up a Preferential Trade Agreement (2005), MOU


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Concerning Cooperation in the Exchange of Finance Intelligence Related to Money

Laundering & Financing of Terrorism (2008), Supply Contract of one Dhruv Advanced

Light Helicopter; MOU on the setting up of Public Key Infrastructure (PKI) in Mauritius

based on Indian PKI model; Protocol on the Sale of Navigational Charts; Agreement on

Cooperation for the establishment of telemetry, tracking and telecommand station for

satellites and launch vehicles and for cooperation in the fields of space research,

science and applications; MOU for the sharing of eprocurement platform of Government

of Andhra Pradesh; MOU on Plant Health Cooperation; Supply Contract for the Coastal

Radar Surveillance System (2009), Memorandum of Understanding on the supply of an

Offshore Patrol Vessel; Agreement on Early Warning of Coastal Hazards(2010). In

addition, Cultural Exchange Programmes have been regularly concluded since 1971.

India Mauritius Trade Relations policy adopted by Mauritius

Investment guarantees to promote joint ventures

Identify items of trade and investment

Boost bilateral trade

Arrest illegal trade between the two countries

Further, to strengthen and consolidate India Mauritius trade relations and to promote

cooperation between the two countries the government of both the countries are

working in the lines of:

Economy

Commerce

Formulate a Comprehensive Economic Cooperation and Partnership Agreement

Investment and economic cooperation

Indian investments in Mauritius

Mauritius's core competencies like strategic location and trade agreements at

multilateral and local levels to serve as a launch pad for Indian investors in Mauritius

market and other markets through its various trade agreements. Government of

Mauritius and the EXIM Bank of India have identified areas of investment for Indian

corporate sectors such as:

Manufacturing


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Financial services

SMEs

Tourism

Health

Education and knowledge

ICT

Capacity enhancement

The forum of India Mauritius trade relations has suggested future plans to:

Encourage Indian investments in Mauritius and joint India-Mauritius investments

into the region.

Increase Indian investment and transfer of technology and know-how, whichwould propel the process of economic development in the region.

Furthermore, tremendous opportunities exists for the cooperation between the two

countries in a mutually beneficial manner.

India Mauritius JBC - A joint business forum which showcases each others

commodities to their individual business and trade partners to promote each

others business and trade.

The India Mauritius JBC, uses their individual trade partner's business and trade

agreements to facilitate business and trade promotion of each other.


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7. PESTEL analysis

PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental

and legal analysis" and describes a framework of macro-environmental factors used in

the environmental scanning component of strategic management.

Political analysis: Political factors are how and to what degree a government intervenes

in the economy. Specifically, political factors include areas such as tax policy, labour

law, environmental law, trade restrictions, tariffs, and political stability. Political factorsmay also include goods and services which the government wants to provide or be

provided (merit goods) and those that the government does not want to be provided

(demerit goods or merit bads). Furthermore, governments have great influence on the

health, education, and infrastructure of a nation.

Social and political stability

A melting point of the world's oldest civilizations, Mauritius is a rare example of social

peace and unity in a multi-cultural society. The population boasts origins from the

European and African continents, as well as from India and China. With such a

cosmopolitan legacy, no wonder our hospitality is legendary. Mauritius is also a safe

place to live, Mauritians being naturally well-inclined and of a peaceful nature. All

Mauritians enjoy freedom of expression and of religion.

There is freedom of the press with the presence of dozens of dailies and weeklies.


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Mauritius has also enjoyed enduring political stability ever since its early days as an

independent nation born in 1968. The Government is democratically elected every 5

years. The Constitution is based on the Westminster Parliamentary model.

Governments have all shown strong and sustained commitment to a market-driven

economy where free enterprise can flourish and foreign investment prosper.

The present government is set to take the country into yet another leap into its future.

That of a global island, an emerging economic powerhouse in the region.

No terrorist risk

Good administration of law and order

Good diplomatic relationship on the international arena

Free and fair election

Good governance

Political Risk: Moderate

The Mauritian government intervenes in the markets through subsidies and price

controls, which contributes to price volatility.

Both monetary and fiscal policies have been expansionary during the

slowdown and government debt remains high. There was a round of monetary

tightening in mid 2011 in light of inflationary pressures.

The government is aggressive in facilitating improvements in the

business climate. The World Bank ranks Mauritius first among African nations in

its Doing Business index.

Tax policy: Mauritius is keeping pace with world wide trends in tax policy and the

Government has reviewed the tax system to reward effort, innovation and

entrepreneurship while granting tax incentives and concessions sparingly in a

transparent manner to encourage investment and job creation.

Trade analysis: Mauritiuss weighted average tariff rate was 1 percent in 2009. The

government has made considerable progress in liberalizing the trade regime, but

some quotas, import restrictions, import and export permits, export-promotion

programs, and weak enforcement of intellectual property rights add to the cost of

trade. The government also controls imports of what it deems to be strategicproducts, including rice and wheat flour. Ten points were deducted from Mauritiuss

trade freedom score to account for non-tariff barriers.

ECONOMICAL


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Since independence in 1968, Mauritius has developed from a low-income, agriculturally

based economy to a middle income diversified economy with growing industrial,

financial, and tourist sectors. For most of the period, annual growth has been of the

order of 5% to 6%, far above the sub-Saharan African average. Despite the rapid

growth, that growth has been equitable and income equality has improved. This has

been reflected in increased life expectancy, lowered infant mortality and improved

infrastructure.

Estimated at US$12,356 for 2009 at purchasing power parity (PPP),[19] Mauritius has

the sixth-highest GDP per capita in Africa, behind Seychelles (US$19,274 at PPP),

Equatorial Guinea (US$16,853 at PPP), Gabon (US$14,421 at PPP), Libya (US$14,381

at PPP) and Botswana (US$13,417 at PPP). The economy is mainly dependent on

sugarcane plantations, tourism, textiles, and services, but other sectors such as

seafood processing, information technology and medical tourism are rapidly developing

as well. Mauritius, Libya, and Seychelles are the only three African nations with a "high"

Human Development Index rating.

Sugar cane is grown on about 90% of the cultivated land area and accounts for 25% of

export earnings. Mauritius is a good example of a monocrop economy but since it is no

more dependent only upon agriculture, using this term would not be apt. However, a

record-setting drought severely damaged the sugar crop in 1999. The government's

development strategy centres on foreign investment. Mauritius has attracted over 9,000

offshore entities, many aimed at commerce in India and South Africa, while investment

in the banking sector alone has reached over $1 billion. Economic performance during

the period from 2000 through 2004 combined strong economic growth with

unemployment at 7.6% in December 2004. France is the country's biggest trading

partner, has close ties with the country, and provides technical assistance in various

forms.

Mauritius in 2005 abolished an 80% tax on around 1,850 different types of goods as

part of a plan to transform the Indian Ocean island into a a duty free "shopping paradise

for tourists". In addition, reforms aimed at attracting new business opportunities have

also been implemented. However, one of the biggest impediments is the traffic


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movement between the towns, which is slowing the development of Mauritius. The

corporate tax has recently been reduced to 15% to encourage non-resident companies

to trade or invest through a permanent establishment or otherwise.

Mauritius is one country that has achieved successful economic and humandevelopment with a dual-track approach to economic liberalisation, whereby poorer

sections of society have participated in its economic growth. The experience of

Mauritius has been used, alongside a number of other countries that have adopted a

dual-track approach, to highlight the benefits to both economic growth and human

development.

SOCIAL

The cuisine of Mauritius is a blend of Indian, African, Chinese and European influences.

It is common for a combination of cuisines to form part of the same meal.

The production of rum, which is made from sugar cane, is widespread on the island.

Sugarcane was first introduced to Mauritius by the Dutch in 1638. The Dutch mainly

cultivated sugarcane for the production of "arrack", a precursor to rum. However, it was

during the French and British administrations that sugar production was fully exploited.

Pierre Charles Franois Harel was the first to propose the concept of local distillation of

rum in Mauritius, in 1850. Beer is also produced on the Island, by the Phoenix Brewery.

The sega is a local folklore music. Sega has African roots and the main traditional

instruments for producing the music are goat-skin percussion instruments called

ravanne, the West African Djembe and metallic clicks using metal triangles. The songs

usually describe the miseries of slavery, and has been adapted nowadays as social

satires to voice out inequalities as felt by the blacks. Men are usually at the instruments

while women perform an accompanying dance. The origin of Sega is not completelyknown however it is likely to have come from West African countries such as Ghana

due to the similarities in the music.

In 1847, Mauritius became the fifth location in the world to issue postage stamps. The

two types of stamps issued then, known as the Mauritius "Post Office" stamps,


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consisting of a "Red Penny" and a "Blue Two Pence" denomination, are probably the

most famous and valuable stamps in the world.

TECHNOLOGICAL

All hardware components are imported in Mauritius. There is no large scalemanufacture of hardware components although there is some assembly of PCs for thelocal market and the regional market.

As far as system technologies are concerned, the country is following the trend withUnix systems as leader in server market and Windows on PC environment. Mauritius isespecially characterised with the absence of legacy mainframe systems and is thus lessaffected in the trend towards migration to network-centred computing. Having started

late, it can leapfrog into these new technologies. In software development, the industryis again following the trend of moving towards packaged solutions rather than custom-developed solutions. However, Data warehousing, Groupware and Workflow solutionsare not widespread. There is also some export of software services to the regionalmarket.A few companies are exporting services such as data capture, pre-media andteleprocessing

Connection to Internet is available through one ISP. Moreover, the local operator will

introduce an ATM ITID NCB MAURITIUS CONFIDENTIAL National Computer Board

Mauritius, 1998Working Team Report on National IT Strategy Plan (Phase II)network in

1999 which will considerably increase available bandwidth. Mauritius is also involved in

the SAFE project which will link South Africa to the Far-East and this will improve

international telecommunication

ENVIRONMENTAL

The environment in Mauritius is typically tropical in the coastal regions with forests in

the mountainous areas. Seasonal cyclones are destructive to the flora and fauna,

however they recover quickly.

Mauritius has a Ministry of Environment that is responsible for the cleanliness of the

island. One of its tasks is garbage and litter collection at public places, and it does an

admirable job in the areas it services. Environmental complaints can be filed online and

requests for Environmental Awareness can also be made. The estuaries are becoming


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polluted due to garbage which is dumped into the inland ravines by the refuse

companies contracted by the Ministry of Environment. This creates a huge problem with

regards to toxic water flow into the various estuaries which also has an adverse effect

on marine life.

The local climate is tropical, modified by southeast trade winds; there is a warm, dry

winter from May to November and a hot, wet, and humid summer from November to

May. Anti-cyclones affect the country during May to September. Cyclones affect the

country during NovemberApril. Hollanda (1994) and Dina (2002) were the worst two

last cyclones to have affected the island.

LEGAL

Juristconsult is a well established set of legal offices in the heart of Port Louis, capital of

Mauritius dealing with legal, corporate and fiduciary issues on a local and international

basis. Juristconsult Chambers, a law firm registered with the Attorney Generals office,

functions in conjunction with Juristconsult International & Co Ltd, a management

company licensed by the Financial Services Commission (FSC).

With a well-developed legal and commercial infrastructure and a tradition of

entrepreneurship and representative government, Mauritius is one of the developing

worlds most successful democracies. It is also one of Sub-Saharan Africas strongest

economies and has one of the regions highest levels of per capita income. The

government is trying to modernize the sugar and textile industries, which in the past

were overly dependent on trade preferences, while promoting diversification into such

areas as information and communications technology, financial and business services,

seafood processing and exports, and free trade zones. Agriculture and industry have

become less important, and services, especially tourism, have become the economic

mainstay. The government still owns utilities and controls imports of rice, flour,

petroleum products, and cement.


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