MAURITIUS

The Emerging Economic Model of Mauritius

Mr. Raj Makoond

Director, Joint Economic Council

Track Record – Sustained Growth

Average GDP Growth (1970-2005) 5.2%

Average Per Capita GDP Growth (1970-2005) 4%

GDP PER CAPITA (USD)

320

1000

2475

4640

0

1000

2000

3000

4000

5000

1970 1980 1990 2004

Year

THE NEW ECONOMIC CONTEXT

• Globalisation

• Loss of preferences

• Economic diversification strategy

ECONOMIC INDICATORS 2005

%

GDP 3.1

Investment rate 21

Unemployment 9.5

THE NEW CHALLENGES

• Implementing reforms

• Corporate re-engineering

• Moving form sectors to clusters

• Becoming a regional player

IMPLEMENTING REFORMS

• INTEGRATION

• - Corporate Tax

• - Value Added Tax

• - Customs Duty

• - Rationalisation of incentive regimes

IMPLEMENTING REFORMS

-Financial Services Development Act

2001

-Companies Act 2001

-Telecommunications Act 2001

- Education Act 2005

- Public Utilities Bill

- Investment Climate Assessment

- White Paper on Labour Laws

MAURITIUS From Sectors to Clusters

Cluster formation: painful process

Global Competitiveness Report 2003/2004

Mauritius Finland

Decentralisation of corporate activity 90 7

State of cluster development 31 1

Collaboration among clusters 48 1

BUILDING ON EXISTING STRENGTHS

• Sugar Cane Cluster

• Textile & Fashion Cluster

• Hospitality Cluster

EMERGING NEW CLUSTERS

Knowledge Cluster

-Consultancy

-Training

-ICT, language and film industries

Seafood Cluster

Logistics and Services Cluster

Environment Cluster

Health Cluster

REGIONAL PLAYER

Mauritius

• Sugar• Textile• Tourism

• Consultancy Services• Banking

Label “Made by Mauritius” will replace the “Made in Mauritius” label

SUGARSUGAR1970

Monocrop Monocrop EconomyEconomy

TEXTILETEXTILESUGARSUGARTOURISMTOURISM

1980

ManufacturiManufacturing & ng & TourismTourism

TEXTILETEXTILESUGARSUGARTOURISMTOURISMFINANCIALFINANCIALSERVICESSERVICESFREEPORTFREEPORT

1990

ManufacturinManufacturing & Services g & Services EconomyEconomy

TEXTILETEXTILESUGARSUGARTOURISM TOURISM FINANCIAL SERV.FINANCIAL SERV.ICT / BPOICT / BPOREAL ESTATE REAL ESTATE SEAFOOD/SEAFOOD/AQUACULTURE AQUACULTURE KNOWLEDGEKNOWLEDGEHEALTH HEALTH ENERGY ENERGY

2000

Business Business PlatformPlatform

Economic TrajectoryEconomic Trajectory