Discover why Mauritius is an attractive destination for foreign investors in 2024

According to World Bank forecasts, Mauritius’ GDP is set to grow by 8% in 2024, supported by several factors, including the recovery in tourism, private investment, and economic reforms. Strafin gives you an overview of what you should expect if you’re looking to start a new venture in Mauritius.

The spectacular upturn in tourism

The most recent data from the Mauritius Tourism Promotion Authority (MTPA) published on November 20, 2023, indicate that the number of international tourists reached 605,000 in 2023, which is a 110% rise compared to 2022. This performance exceeds the Mauritian government’s forecast of 600,000 visitors. December 2023 is expected to be the most successful month of the year, with 125,000 tourist arrivals. It’s worth noting that the leading tourism markets are France, the United Kingdom, South Africa, India, and China.

This upturn in tourism is excellent news for the Mauritian economy. The island heavily depends on this sector, which accounts for some 20% of the national GDP. The recovery, set to continue in 2024, should further encourage private investment in tourism.

Here are a few concrete examples of private investment plans for 2024:

• Sun International, a South African hotel group, should invest $500 million in the construction of a new resort on the island.
• International bank HSBC announced the opening of a new branch in Mauritius.
• Indian software company Tata Consultancy Services intends to set up a new development center in Mauritius.
• Mauritian textile company Teejay has committed to investing $200 million in the construction of a new factory.

Private investment

Private investment is also expected to increase in 2024, with an estimated $1.8 billion. In 2023, it reached $1.5 billion, up 10% from 2022.

Economic reforms

In recent years, the Mauritian government has implemented a number of economic reforms, including the reduction of the corporate tax rate from 30% to 15%. The Mauritian tax system has also been streamlined.

In its 2023-2024 budget, the Mauritian government has announced several economic reforms, some of which are designed to attract foreign investors.

Additional figures

Mauritius’ GDP per capita is expected to reach $10,000 in 2024.

Unemployment is forecasted to be at 6% in 2024.

Inflation is expected to drop to 3% in 2024.

Reduced corporate tax rate

The corporate tax rate has been lowered from 30% to 15%, making Mauritius one of the most competitive countries worldwide in terms of corporate taxation. This measure aims to attract foreign investors seeking lucrative business ventures overseas.

Streamlined tax system

The Mauritian tax system has been streamlined, which should make it easier for foreign investors to understand their tax obligations while reducing compliance costs.

New investment regime

The Mauritian government has introduced a new investment scheme, the Mauritius Business and Investment Incentives Scheme (MBIIS), which offers a range of tax and non-tax benefits to foreign investors. These include exemption from income tax for 10 years, a 50% reduction in corporate tax, and easier access to the workforce.

Other measures

The Mauritian government has also announced additional measures to attract foreign investors, including:

• The creation of a $10 billion sovereign wealth fund to invest in infrastructure and sustainable development projects.
• The implementation of a national skills development strategy to meet the needs of businesses.
• The promotion of Mauritius as a tourist and business destination.

Opportunities for foreign investors

Mauritius’ positive economic outlook for 2024 should greatly interest foreign investors. To date, the most promising sectors for foreign investment are tourism, financial services, information and communication technologies, and industry.

Tourism

Tourism is a key economic pillar in Mauritius, accounting for around 20% of GDP. The island is a popular tourist destination known for its white sandy beaches, turquoise waters and multicultural heritage. Therefore, there are opportunities for foreign investors in the tourism sector, such as the construction of hotels, resorts or tourism infrastructure.

Financial services

Financial services play an essential role in the Mauritian economy since Mauritius has been established as an offshore financial hub, hosting several offshore companies. Foreign investors can join the financial services sector by setting up offshore banks, investment companies or asset management firms.

At the same time, as a major pivot for offshore companies, the financial services sector should also benefit from private investment.

Information and communication technologies

Information and communication technologies are a fast-growing sector in Mauritius, a center of excellence for ICT and home to several ICT companies. Foreign investors can tap into the ICT sector by setting up software companies, IT services companies or telecommunications companies.

Industry

Industry is another key sector of the Mauritian economy, accounting for around 15% of GDP. The country is a leading export hub for textiles, chemicals, pharmaceuticals and electronics. Foreign investors can tap into the industrial sector’s potential by building factories, setting up manufacturing businesses, or investing in existing businesses.

Summing up

The economic outlook for Mauritius in 2024 is positive. Mauritius holds a myriad of business opportunities for foreign investors in various sectors. If you’re keen on benefiting from all these strategies explained above, Strafin is here to help you. Our team of experts will guide you in all aspects of your investment project, ensuring you meet these standards while streamlining the process. Contact us now to get started.