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.



Overview of investment policy context and challenges in Mauritius

Mauritius has experienced strong growth and development over many years, but more recently exports have lost in competitiveness, terms of trade have declined, and productivity and private investment (especially domestic) have barely increased for over a decade. Such problems have structural causes, and dedicated efforts aimed at enhancing the position of Mauritian industries in international supply chains are required. In this regard, this chapter investigates the existent framework for investment promotion and for protection of investor rights, and explores investment and growth trends over the last two decades. Despite a positive picture overall, Mauritius must contend with a slight decline in private investment, stagnation of gross fixed capital formation, and insufficient prioritisation of investment inflows into strategic economic sectors. Key policy challenges faced by Mauritius in attracting investment across all economic sectors are identified, followed by associated policy options in the areas of investment policy, investment promotion, infrastructure development and competition policy, trade policy, and human resource development.


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