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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Core Views:

  • We forecast that the Mauritian economy will grow by 3.6% in 2014, and by 4.0% in 2015. While this would represent a stronger growth rate than that seen over the past two years - real GDP increased by 3.3% in 2012 and 3.2% in 2013 - our 2014 forecast has been downgraded since last quarter.

  • The Key Repo Rate will be maintained at its current rate of 4.65% through the remainder of 2014, as inflationary pressures remain benign and first quarter real GDP growth disappointed.

  • We forecast that Mauritius's current account deficit will narrow from 9.9% of GDP to just 6.6% in 2014, followed by a further narrowing in 2015 when we forecast that the deficit will account for just 5.7% of GDP.

Major Forecast Changes

Our 2014 real GDP growth forecast has been...

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Mauritius Operational Risk Coverage (9)

Mauritius Operational Risk

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BMI View: Mauritius offers investors 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' 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...

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Mauritius Crime & Security

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BMI View:  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, making it the safest country in the Sub-Saharan Africa region in terms of crime. However, the country' s scores for international security , including terrorism, detract from its overall score for Crime and...

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Mauritius Labour Market

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BMI View :  Mauritius is the outperformer in Sub-Saharan Africa for Labour Market Risk, outstripping BRICS member South Africa by five places. This position is largely due to its performance on educational access and quality, resulting in a well-educated, literate and numerate workforce. Mauritius' ranking is lowered, however, by the small size of the labour force, as well as a lack of investment in tertiary level edu cation, which lowers the highly skilled proportion of the work force. 

Overall, we give Mauritius a score of 50.3 out of 100 for Labour Market Risk, just ahead of Ghana and Seychelles regionally (which score 48.9 and 48.7 respectively) and in a globally middling position between Tajikistan and Colombia.

Risks to availability of labour stem from high unemployment and low female labour...

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Mauritius Logistics

Mauritius Trade & Investment

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BMI View : 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 Logistics Risk Index for Trade and Investment. 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...

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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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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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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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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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