Mauritius
In-depth country-focused analysis on Mauritius's economic, political and operational risk environment, complemented by detailed sector insight

Our comprehensive assessment of Mauritius's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Mauritius, as well as the latest industry developments that could impact Mauritius's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Mauritius before your competitors.

Country Risk

Mauritius Country Risk

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  • The Mauritian economy will record real growth of 4.2% in 2015 and 2016, picking up from an estimated 3.5% in 2014. Private consumption will be the major contributor to headline growth. The Mauritian economy will record real growth of 4.2% in 2015 and 2016, picking up from an estimated 3.5% in 2014. Private consumption will be the major contributor to headline growth.

  • We forecast a cumulative hike of 50 basis points to Mauritius's Key Repo Rate in 2015. Although inflation remains low, concerns over saving levels will see rates raised, especially as real GDP growth picks up.

  • The dissolution of the Mauritian parliament makes a new election before the end of 2014 likely. The victors in this will be the new coalition between the PTr and the MMM, which will herald constitutional change in the island state. However, the formation of a...

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Mauritius Operational Risk Coverage (9)

Mauritius Operational Risk

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Mauritius is one of the most attractive emerging markets in Sub-Saharan Africa. The country has enjoyed sustained economic growth throughout the global financial crisis, giving it an excellent platform for further expansion, with its banking and finance sector and consumer industries providing the best investment opportunities. Foreign direct investment (FDI) is encouraged by the country's political stability and relaxed regulatory regime. Although Mauritius's small geographic and population size limit its market growth and the availability of labour, this also ensures that it is one of the safest countries in the region, with a lack of ethnic tensions, separatist groups or terrorism. In addition, good international maritime connections and internal road links ensure the relatively smooth running of supply chains.

Mauritius has numerous advantages in the areas of conducting business, workforce education levels, crime and regulatory...

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Mauritius Crime & Security

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Mauritius is an attractive option for investors looking for an environment unencumbered by high crime rates, although the risk of international conflict or terrorist activity is slightly elevated. Mauritius has an advantage in that South Africa, the region's key economic power, suffers from extremely high crime rates, which by comparison makes Mauritius a much safer option for those looking to invest in the region. Mauritius boasts low crime rates, and it is placed first in the region for Criminal Risk in BMI's Crime and Security Risk Index. However, the country's scores for Interstate Security Risk and Terrorism Risk detract from its overall score. Mauritius scores 49.8 out of 100 in the Crime and Security Index, placing it 11th out of 44 countries in Sub-Saharan Africa and between France and Brunei globally.

Perhaps the greatest threat to investors regarding crime is that of cybercrime, which is on the increase...

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Mauritius Labour Market

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Mauritius performs strongly in Sub-Saharan Africa for Labour Market Risk, largely due to its performance on educational access and quality, resulting in a well-educated, literate and numerate workforce. Mauritius's ranking is lowered, however, by the small size of the labour force, as well as a lack of investment in tertiary level education, which lowers the availability of highly skilled workers. Overall, we give Mauritius a score of 48.1 out of 100 for Labour Market Risk, just ahead of Nigeria and South Africa regionally (which score 47.7 and 47.5 respectively) and in a globally middling position (94th) between Macedonia and El Salvador.  

Risks to availability of labour stem from the diminutive size of the Mauritian labour force and low female labour market participation, which combine to minimise the size of the labour market considerably and increases the risks to investors reliant on a large workforce. The recent rapid expansion of the...

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Mauritius Logistics

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Mauritius is a Sub-Saharan Africa (SSA) logistics outperformer. The country's open economy and successful diversification strategy has allowed it to emerge from the global financial crisis in a better position than many of its peers. In addition, supply chains in the country benefit from a high-quality transport network, and business generally will benefit from widespread availability of utilities. Mauritius's efficient and low-cost trading processes also make it an attractive investment prospect. Consequently, the country is placed first in the SSA region out of 44 states in the BMI Logistics Risk Index, with a score of 56.2 out of 100. BMI highlights as weaknesses Mauritius's over-reliance on one freight mode (road), one container port and one international airport, as well as its single source for oil imports. While the country's market size is small, meaning that all needs are met by these single sources, the lack...

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Mauritius Trade & Investment

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Mauritius has enjoyed decades of political and economic stability, which has allowed the economy to develop and more recently diversify, making it very attractive to potential investors and contributing to its score of 68.5 out of 100 in our Trade and Investment Risk Index. Mauritius is the outperformer in Sub-Saharan Africa by some margin, ahead of BRICS country South Africa by eight points (the other BRICS are Brazil, Russia, India and China), and is 32nd in the world.

The government's pro-market policies are one of the country's greatest assets, illustrated by limited barriers to trade, a strong rule of law and a sophisticated financial market. Mauritius performs particularly strongly in terms of its lack of bureaucratic impediments to business and trade. The economy suffered at the beginning of the 21 st century as sugar, the island's key natural resource and longstanding export product, was phased out. In 2005 the government...

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Mauritius Industry Coverage (5)

Commercial Banking

Mauritius Commercial Banking

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Commercial Banking Sector Indicators 
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits

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Insurance

Mauritius Insurance

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BMI Vie w: As of late 2014, the most recent newsflow confirms our view that the current situation and immediate prospects of Mauritius' insurance sector are fairly uninspiring. For providers of life insurance (and pensions), which account for around 75% of all premiums written, the main challenge is that almost all the households and companies who could be using their offerings are already doing so. There is limited scope to expand the business by engaging with new customers. For providers of non-life insurance, a part of the problem is the sluggish growth in the overall economy. Although some players are achieving good growth in health insurance, there is limited expansion in volumes in basic lines such as motor vehicle insurance and property insurance.

In addition, competition is intense, and pressure on prices is downwards. In spite of a wave of consolidation which has produced four...

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Pharmaceuticals & Healthcare

Mauritius Pharmaceuticals & Healthcare

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BMI View : We do not expect Mauritius' reliance on imported drugs to decrease, even though the government has been encouraging the production of drugs locally. Additionally, export growth will be slow due to the limited capacity of local drugmakers.

Headline Expenditure Projections

Pharmaceuticals: MUR6.00bn (USD195mn) in 2013 to MUR6.56bn (USD220mn) in 2014; 9.35% growth in local currency terms.

Healthcare: MUR17.44bn (USD567mn) in 2013 to MUR18.36bn (USD617mn) in 2014; +5.3% growth in local currency terms.

Key Trends And Developments

In early June 2014, in line with its social commitment to the community, Engen Petroleum partnered with Link to Life in...

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Telecommunications

Mauritius Telecommunications

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BMI View :  BMI's Q 4 14 Southern Africa report analyses the latest industry, regulatory and macroeconomic developments in the telecoms markets in Angola, Botswana, Mozambique, Mauritius and Namibia. It also contains analysis of the latest market data relating to the end of June 2014   a nd an update of   our five-year forecasts to 2018 for the mobile, fixed-...

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Tourism

Mauritius Tourism

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BMI View:   Mauritius tourism report examines the key trends in this relatively well - established tourism market off the coast of East Africa, including the expected growth in the number of arrivals and departures and the impact on industry value and tourism related expenditure. Overall we expect to see slow but steady growth, and combined with the country's stable political and economic environment this indicates a positive potential investment environment.

We are currently forecasting only limited growth for inbound arrivals to Mauritius, with the boom in arrivals from the Asia Pacific region counteracted by a decline in arrivals from key source markets in Europe including France and Italy. Due to this decline we expect to see arrivals reach just over 1.01mn in 2015, increasingly slightly to 1.06mn in 2018, the end of the...

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