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Africa Strategy

Mauritius : The ideal business and investment hub for Africa

Africa is full of promise and potential infusing a new dynamism to the economic development of the continent. It boasts vast amount of arable land the untapped riches from oil and minerals are key assets for the sustainable growth of this diverse continent. Besides, it is home to an abundance of natural resources that include diamonds, gold, oil, natural gas, uranium, platinum, copper, cobalt, iron, bauxite, silver, and more; it has approximately 30 percent of the earth’s remaining mineral resources.

Africa is the 2nd largest populated continent. It has a population of 1.35 million people which is expected to double by 2050 to reach 2.5 billion people, making it one of the largest markets in the world. has a relatively young and dynamic population with a median age of 19.7 years and 70% of the population of sub-Saharan Africa is under the age of 30.

Spending by African households has risen significantly from USD 840 billion in 2008 to USD 1.93 trillion in 2021 and will continue to maintain an upward trend. Moreover, the number of middle-class Africans has tripled over the last 30 years to 313 million people, or approximately 25% of the continent’s population, according to the African Development Bank (AfDB). 

Calls for investment and confidence in the economic awakening of the African continent have increased in recent years. The whole world is watching Sub-Saharan Africa as it rises on the crest of the waves of opportunities. Africa is presented as the “new frontier” which has sharpened the appetite of many countries and initiated a race for the conquest of the African market.

However, the socio-economic development of Africa faces a number of challenges. After an extended period of strong economic growth, many sub-Saharan African countries have been hit by multiple shocks—the advent of COVID-19 pandemic and its lingering effects, the sharp decline in commodity prices, disruptions to the supply chain, tighter financing conditions, infrastructural gaps, severe climatic conditions and more recently the Russia-Ukraine war.

The economic recovery in sub-Saharan has been jeopardized by the Russian invasion of Ukraine which has triggered a global economic shock. The growth momentum for the region has weakened with economic activity expected to expand by 3.8% in 2022.

Despite having 17% of the current global population, Africa has accounted for a negligible 3% of global GDP, 2.6% of world’s trade and attracted only 4% of global FDI. To harness the demographic dividend, resource endowment and untapped potential, the right policies need to be implemented to ease infrastructure constraints, improve intra-regional trade, accelerate the industrialization of Africa, attract investment across diverse sectors and perform value-added operations on the continent with a view to underpin the sustainable economic transformation of Africa.

Mauritius the gateway to Africa

Mauritius has forged a reputation as a safe, trusted, and competitive financial centre supported by strong institutional arrangements and good governance. This is evident with the growing relevance of the Mauritius International Financial Centre (MIFC) serving as a conduit for driving investment to Africa. Today, more than 450 private equity funds are domiciled in the Mauritius IFC and investing in the African continent. As of June 2021, nearly USD 40 billion investments directed to Africa were structured through Mauritius.

Moreover, the country has earned international recognition and is on the OECD “white list” of jurisdictions that have substantially implemented internationally agreed tax standards and has also been adhering to compliance regulations. Mauritius is seen as a model of stability and economic prosperity in the region and envisions to consolidate its position as a regional platform.

Over the years successive Governments have adopted bold policies to develop new economic pillars, foster a conducive business environment and establish good governance practices, thus laying the foundations for attracting higher levels of foreign investment. Besides, these measures have contributed to position the country as number one destination for doing business in Africa and Mauritius is positioned among the top 10 performers on the World Bank Doing Business Index. Mauritius also fares well on a number of international indices such as the Global Competitiveness Report, Mo Ibrahim Index of African Governance and Economic Freedom Index, to name a few.

The destiny of Mauritius is inextricably linked to the future development of Africa. As such, Mauritius must avail itself of its attributes and experience to tap on the opportunities unfolding and shore up its position as the platform to facilitate business and trade for Africa. Mauritius is seen as a model of stability and economic prosperity in the region and plays a strategic role on the premise of its geopolitical situation as it serves as a hinge between the Southern and Eastern part of Africa on the one side and Asia on the other. Leveraging the network of agreement signed recently, namely CECPA with India and FTA with China, Mauritius is ideally positioned to be the business platform linking Asia to Africa.

The Current Africa Strategy

Many African States are stepping in the phase of economic transition urging an unprecedented opportunity for sustained growth, structural change, and accelerated development. As opportunities emerge and foreign partners flock to Africa, it is particularly important that Mauritius joins the fray.

To that end, the Government is implementing pro-African policies to improve the investment climate, reinforcing economic diplomacy, and enlarging market access to consolidate the position of Mauritius as the strategic partner for African States.

Thus, the government’s strategy is to leverage on the geostrategic position to:

Position Mauritius as the conduit for driving investment to Africa through the MIFC;
Position Mauritius as the ideal trade platform, tapping on the network of agreements signed (CECPA, FTA China, FTA Turkey, PTA Pakistan, IEPA, AGOA) and the operationalization of the AfCFTA; and
Boost export of services to Africa, harnessing Africa’s demographic dividend, its growing middle class, increasing use of technology, and its rapid urbanization.

Africa at a Glance

Africa Wealth of Natural Resource

30 % of World’s Mineral Reserves
40% of World’s Gold
90% of Chromium & Platinum
12 % of World’s Oil Reserves
8% of World’s Natural Gas
65% of World’s Arable Land
Largest Reserves of Cobalt, Diamond & Uranium

Priority Countries

In line with the Africa Strategy of the Economic Development Board (EDB), the following countries have been identified as priority countries in Africa for Mauritian operators wishing to expand their operations on the continent, increase exports and boost export of services: South Africa, Kenya, Tanzania, Zambia, Botswana, Madagascar, Cote d’Ivoire, Ghana, and Egypt. Given the dynamics of the African market, EDB will consider other countries depending on the new opportunities emerging.

Bilateral Agreements

Bilateral Agreements are viewed as a tool for promoting trade and investment. Investors can tap on the network bilateral agreements signed by the Government of Mauritius. As at date, 22 DTAs and 23 IPPAs with African States and 16 DTAs and 9 IPPAs have been ratified.

Trade & Investment Data

In line with its mandate to position Mauritius as a competitive trade & investment platform for Africa, the Economic Development Board has subscribed to two international business statistical tools namely, Orbis Crossborder Investment Platform & International Trade Map.

Interested operators are requested to submit their queries pertaining to trade & investment data on africa@edbmauritius.org

Projects in Africa

Cote Ivoire

Download the Cassava Project

Download the Cocoa transformation plant project

Download the Palm oil project

Download the Tourism projects

Download the Sustainable development & Waste Management

Download the Agro Industry & Processing

Download the Hospitality & Property

Download the Infrastructure & Transport

Ethopia