MAURITIUS MANUFACTURING

Mauritius is committed to transforming its manufacturing sector through attractive fiscal incentives and promoting local products

The manufacturing sector is a key contributor to the Mauritian economy. The sector has traditionally been dominated by textiles and sugar production, with the former considered to be the catalyst of the Mauritian industrial revolution.

Over the past 40 years, the textile industry has spurred economic growth by attracting FDI from overseas; these days, the expertise and agility of the sector position it as a textile hub of excellence within Africa.

A changing landscape

The Mauritian manufacturing sector is becoming increasingly diverse. For example, production of jewellery, optical goods, furniture and electric components has increased.

The manufacturing landscape is also increasingly being shaped by technological advances, changing consumer preferences and digitalisation. Part of the government’s Vision 2030 involves revamping the manufacturing industry through increasing diversification and the adoption of a value-added strategy. It also intends to help stimulate the production of high value-added products (such as jewellery) which have good export potential.

Finally, the government has identified several priority sub-sectors to revitalise, including recycling, food processing, printing and packaging and technical textiles.

Attractiveness to investors

Mauritius offers an attractive financial package to domestic manufacturing companies – personal tax, corporate tax and VAT harmonised at 15 percent – while the sector has also been helped by the inception of Export Processing Zones

(EPZs). Mauritius’ EPZs provide duty-free imports, subsidised utility rates, access to credit and institutional support, which has helped the manufacturing sector to grow and attracted foreign investment.

Mauritius also provides a raft of benefits to international manufacturing businesses wanting to establish a production unit within the country.

These range from an eight-year income holiday for companies manufacturing pharmaceutical products, medical devices and high-tech products to the removal of import duties on equipment and raw materials.