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OECD Investment Policy Reviews: Mauritius 2014

image of OECD Investment Policy Reviews: Mauritius 2014

This review illustrates the significant progress made by the government of Mauritius in improving its investment climate in recent years. It highlights major initiatives and specific policy measures undertaken, as well as areas that need further reforms to attract more and better investment, both domestic and foreign. While numerous policy advances have been achieved, this review identifies remaining challenges and policy options.

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Infrastructure investment policy in Mauritius

The strategic importance of infrastructure development for the country’s economic competitiveness is well-understood in Mauritius. The crucial role that private investment (and especially FDI) can play in expanding and upgrading infrastructure networks is also emphasised. Nonetheless, it remains necessary to create a more level playing field between public and private providers of infrastructure services. The Mauritian framework for corporate governance of State-Owned Enterprises is well advanced, which can help in this regard by improving service quality and network coverage, and making more space for private investment alongside public operators. The public procurement framework is transparent and effective, but the legislation for Public Private Partnerships in infrastructure could be further clarified. Meanwhile, the role of the competition authority in monitoring infrastructure markets is well-established; on the downside however, the absence of an independent regulator in the energy and water sectors risks reducing the predictability of pricing and cost-recovery structures for investors.

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