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Mauritius is located in southern Africa, an island nation in the Indian Ocean. Although visited by Arab, Malay, and Portuguese sailors between the 10th and 16th centuries, Mauritius was uninhabited until the Dutch took possession in 1598. Abandoned by the Dutch in 1710, it was taken over by the French in 1715 and seized by the British in 1810. It gained independence in 1968. Mauritius has a reputation for stability and racial harmony among its mixed population of Asians, Europeans and Africans, and the country has maintained one of the developing world's most successful democracies. Before, and for several years after, independence in 1968, Mauritius was principally a sugar-based economy. Since independence, the country has developed from a low-income, agriculturally based economy to a middleincome, diversified economy with growing manufacturing, financial, and tourist sectors. Political stability and efforts to diversify have helped Mauritius become one of Africa's most prosperous economies.
Mauritius at a Glance
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Full name: The Republic of Mauritius Capital and largest city: Port Louis Area: 2,040 sq km (788 sq miles) Major languages: English (official), Creole, French, Indian languages Major religions: Hinduism, Christianity, Islam Government: Parliamentary republic
President : Sir Anerood Jugnauth Prime Minister : Navin Ramgoolam
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Monetary unit: 1 Mauritian rupee=100 cents Main exports: Sugar, clothing, tea, jewellery Internet domain: .mu International dialling code: +230 Holiday : Independence Day ± 12 March (1968) Mauritius is an independent island republic with a democratic government. The capital city is Port Louis. The other major town is Curepipe. Dwarfed by other countries in terms of total area, mineral deposits and oil reserves, Mauritius is a giant in terms of economic growth and political stability. Its population is educated, hard working and governed democratically with sound economic policies. Mauritius has a free market economy with positive economic growth, almost full employment and a favourable balance of payments position. The principal sectors are manufacturing, tourism, textile and sugar cane processing. Mauritius is emerging as a major business and financial sector in the region and in August 1995 became a member of the Southern African Development Community (SADC). The private sector is predominant and the Mauritius Stock Exchange is one of the fastest growing in Africa.
Population Demographics (*comparison with India)
Mauritius (2010 est.) Population Country comparison to the world (Population) Age structure : 0-14 years 15-64 years 64 years and above Population growth rate Urbanization: Urban population Rate of urbanization Labor force Labor force ± by occupation 42% of total population 0.9% annual rate of change 587,000 (2009 est.) Agriculture & fishing- 9% Const. & Industry- 30% Transportation & comm.- 7% Trade, rest. & hotels- 22% Finance- 6% Other services- 25% (2007) Population below poverty line Distribution of family income ± Gini index 8% (2006 est.) 39 (2006 est.) 25% (2007 est.) 36.8 (2004 est.) 29% of total population 2.4% annual rate of change 467 million (2009 est.) Agriculture ± 52% Industry -14% Services ± 34% (2009 est.) 22.5% 70.4% 7.1% 0.776% 30.5% 64.3% 5.2% 1.407% 1,284,264 154 India (2010 est.) 1,156,897,766 2
In the northeastern hills. Language There is no official language in There are four major language families. so it appears unlikely that this would be numerous Tibeto-Burman languages are adapted as a national spoken. Indo- administrative work is written in Aryan. number by Sikhs. The majority southern third. who make up only over 2 percent of the Muslims (16. Mauritius. English. however. However. Government and each with numerous languages. In the middle regions a of people understand a Creole number of tribal languages of the language. population. and others (3. a branch of Indo-European.3 percent).6 percent). percent of Indians are Muslim. The next Hindus make up 52 percent of the total largest religious category is Christians.1 population and are closely followed in percent) follow them. . The press uses French. The only other groups of numerical significance are the Buddhists (less than 1 percent) and the Jains (less than half a percent). 13 constitutionally guaranteed right. Christians (28. spoken. is understood by more of the and the Dravidian family covers the population than English. There is no agreed-upon Munda or Austro-Asiatic family are written form of this language.Cultural Issues Culture Religion Mauritius India Religious freedom is the major key to 80 percent of the population was peace on Mauritius and is a enumerated as Hindu. which covers the northern half of the country.
with control and since Mauritius was a former British funding colony. and women now have access to Although women constitute the majority education. seekers are turning into job creators. After the country coming from three Child has with levels: federal. compulsory India Much of the progress in education primary education. has been put population.Treatment of Historically. Education Expenditure 3.9% of GDP 3. governmental employment. and of the total population. universal. Women women have had The challenges and opportunities subordinate roles in Mauritian society. free textbooks. approximately both human and material. the services. India independent in 1968. state. entrepreneurial world is still a male dominated one. the Constitution specifically era are growing rapidly that the job prohibits discrimination based on sex. is compulsory.2% of GDP . free has been credited to various private secondary education and a fairly wide institutions. and local. education became education one of the main preoccupations of the made a huge progress in terms of Mauritian Government to meet the new increasing primary education attendance challenges awaiting the country. provided to the Indian women of digital However. Education The education system in Mauritius is Education in India is mainly provided largely based on the British system by the public sector. India's improved education into the Education sector and system is often cited as one of the main impressive progress has been achieved contributors to the economic rise of in terms of free. The private education range of higher education courses at market in India is estimated to be worth the University of Mauritius $40 billion in 2008 and will increase to $68 billion by 2012. rate and expanding literacy to two thirds of the Considerable investment of resources.
and in particular should dress exchanging of business cards takes women place at meetings and business attire is modestly.30am to 1pm. or a 'Namaste' . with some the right hand only.30 to 5. Business cards are usually though are usually from 9am to 4pm exchanged on initial introduction. Handshakes are businesses open for a half-day on fairly common. to see if greeted with a hand. It is dress and visitors can take the cue from customary to engage in small talk before their hosts. though one should wait Saturdays. and Saturdays from 9. and hold high positions in companies.30pm (weekdays) with a lunch break from 1pm to 2pm. . handshakes and the Suits and ties are appropriate. If it is very hot. using Monday to Friday.a traditional Indian greeting of a small bow accompanied by hands clasped as if in prayer. the island: punctuality and politeness is with punctuality an important aspect. and foreign businesswomen are readily accepted. It is however possible to be usually not required and short sleeve somewhat more casual in terms of shirts are deemed appropriate. It is common for women to participate in business meetings. Business hours are usually from 9.Business Custom Standard business practice applies to Business in India is conducted formally. important. jackets are worn. Visitors should return the greeting. Lightweight materials are getting down to business and topics can recommended due to the tropical range from anything from cricket to climate. Business hours can vary politics.
Physical Forces Topography The island of Mauritius. with Mombasa some 1800 kms away. You will need to pay close attention to climatology reports and weather forecast before you plan yourtravel. it is only 1865 square kilometres in area.00 am during summertime and wintertime. efficient and supportive infrastructure. Thetemperature ranges around 25 to 33°C in the coastal belts & it rolls around 20 °C to 28 °C in the plateau areas. to the north. in the southeast. Massive investment made for the continuous upgrading of the overall infrastructure. » Entire island is connected with electricity (stable power) and water supply for agricultural. Industries can thus be located anywhere on the island . The temperature of water ranges around 22 °C in winter and 27 °C in the plateaus. Winter times are commonly hot and humid with temperatures roaming from 24 °C in the coastal region to 19 °C in the plateaus. Climate Conditions In nature Mauritius Climate is tropical.00 am and 6.30 during summer and wintertime. Then winter starts from May & ends in October. The country includes Rodrigues. Africa being the nearest continent. Agalega and Cargados Carajos (St Brandon) islands. The summer months start off from Nov and in May they end. Mauritius is at risk of Tropical cyclones. located in the Indian Ocean approximately 855 kms off the east coast of Madagascar. Infrastructure » Mauritius endowed with a reliable. at par with the best available in developed countries. » Extensive network of roads including a multiple lane highway linking the airport. Abundant rainfall takes place from the month of Jan to March. industrial and household consumption. A volcanic island about 10 million years old. July is the coldest months and Feb is the hottest month. Sunrise occurs at 5. Sunset occurs at 7 pm & 5.
high bandwidth international leased lines and high-speed internet access). Lease of industrial land on a long-term basis. Regular air and sea connections with the rest of the world with major airlines and shipping companies servicing the island. from the State Land Development Company (SLDC). Operates under the aegis of the Ministry of Finance and Economic Development and has as shareholders the Government of Mauritius and the Development Bank of Mauritius Ltd. SLDC. ISDN. The SAT3/WASC/SAFE (South Africa Far East) submarine fibre-optic cable links Mauritius to Europe via South Africa and to Asia via India and Malaysia. at very concessionary rates.» Well-developed digital network infrastructure. endeavours to provide high bandwidth global connectivity to the whole of the island at competitive rates. » The SLDC. » Airport/Harbour equipped to meet the full needs of both passenger and cargo traffic. Excellent telecommunication facilities (ADSL. the warehouse of State owned strategic land that can be leased to potential investors. thus placing the island on the information superhighway. Mauritius Telecom. in collaboration with its strategic partner France Telecom. . » Fully serviced industrial buildings. a new generation knowledge and science park with state-of-the-art telecommunication facilities and modern office space. spreads over 64 hectares. a public company created in October 2001. The Ebène Cybercity. industrial parks and IT habitats are available for plug and play type activities.
000 (2009 est. and hospit alit y and propert y development.100 (2009 est. The government 's develo pment strategy centers on creat ing vert ical and horizontal clusters of develop ment in t hese sectors. South Afr ica.2% Services: 54.) GDP .) India $3. informat ion and communicat ions techno logy. Mauritius GDP (Purchasing power parity) GDP . and is expanding into fish processing.5% (2009 est. This remarkable achievement has been reflected in more equitable inco me distribut io n. Maurit ius has developed from a low-income. lowered infant mortalit y. The economy rests on sugar.4% (2009 est.000 offshore ent it ies.) 7.per capita (PPP): $13. and a much-improved infrastructure. tourism.9% Industry: 24. For most of the period.6% Services: 70.57 trillion (2009 est. financial. Maurit ius has attracted more than 32. increased life expectancy. and China. agricu lturally based eco no my to a middle-inco me diversified economy wit h growing industrial.Economy Since independence in 1968.) $16.) $3. annual growt h has been in t he order of 5% to 6%. has been well po ised to take advantage of t he Africa Growt h and Opportunit y Act (AGOA). text iles and apparel. and tourist sectors.65 billion (2009 est. Sugarcane is grown on about 90% of t he cult ivated land area and accounts for 15% of export earnings.1% (2009 est.) GDP . Maurit ius. and financial services.composition by sector: Agriculture: 4.real growth rate: 3. wit h it s strong text ile sector. Invest ment in t he banking sector alo ne has reached over $1 billion.9% ( 2009) . many aimed at co mmerce in India.) Agriculture: 17% Industry: 28.
Although Mauritius is in general a peaceful society. the Mauritian Social Democrat Party (PMSD). The National Assembly elects the president. r esponsible to the Nationa l Assembly .Political Issues Mauritius earned its independence from Britain in 1968. while the MLP's support-base is mainly Indian. who in turn selects the prime minister. while 4 are appointed to represent minority interest. Government type: parliamentar y democracy Executive branch: chief of state: Pr esident Sir Aner ood JUGNAUTH (since 7 October 2003). there are a fair number of political parties. which had controlled the islands since 1810. and the Mauritians have continued to follow the British model of government. elections last held on 19 September 2008 (next to be held in 2013). with elections being held once every 5 years. In spite of the small size of the country. prime minister and deputy pr ime minister appointed by the pr esident. and the Militant Socialist Movement (MSM). Mauritius is a parliamentary democracy based on the Westminster model. the MMM tends to be more socialist in outlook and is favored especially by the Creoles. The major political parties are the Militant Movement of Mauritius (MMM). There is a 66-seat National Assembly. Vice Pr esident Angidi Veer iah CHETTIAR (since 24 August 2007) head of government: Prime Minister Navinchandra RAMGOOLAM (since 5 July 2005) cabinet: Council of Ministers appointed by the pr esident on the r ecommendation of the prime minister elections: pr esident and vice pr esident elected by the National Assembly for five-year ter ms (eligible for a second ter m). Most governments over the past twenty years have been coalitions. Although there are few significant differences among the major parties. 62 of whose members are elected by direct popular vote. Voting is based to a certain extent along ethnic lines. comprising 2 or more political parties. its politics are somewhat capricious. the Mauritian Labor Party (MLP).
CORPORATE LAWS The Corporate Sector is mainly regulated by the Companies Act 2001. the Protected Cell Companies Act 2003. The Companies Act 2001 is in line with the . Common law. the Income Tax Act 1998. and the Mutual Fund Act 2003.Legal Issues BASIS OF LAW Based on French civil law system wit h element s of English common law in certain areas. accepts co mpulsor y ICJ jurisdict ion wit h reservat ions LEGAL STRUCTURE The Constitution guarantees freedom and personal rights of every citizen. It is exercised by the Cabinet headed by the Prime Minister. Ministers and civil servants. the Insurance Act 2004. The legal system is made up of Statute law. The executive authority of Mauritius lies with the President of the Republic ± elected by Parliament. the Civil Code and Case law. Shares can be issued at no par value. the Trust Act 2001 and the Financial Services Act 2007. Mauritius is well known for its political and socio±economic stability with general elections democratically held every five years as guaranteed by the constitution. The Mauritian legal environment consists of Statute Law enacted by Parliament including Bye-laws & Regulations made by ministers under Acts of Parliament. COMPANY LAW Under the Companies Act 2001 a company in Mauritius may be incorporated with or without a Constitution. Annual Finance Acts bring necessary legislative amendments as and when required. 8 of whom are appointed on a best loser system after a General Election. The National Assembly based on the UKwest minster style is responsible for Statute Laws and consists of 70 elected members. Mauritius being a former French and British colony has developed a hybrid legal system whereby the French Civil Code and English Common Law and Case Laws form an integral part of the legal system. An independent judiciary exercises control over the executive and the legislature ± the Privy Council (UK) being the Final Court of Appeal.
Notarial Deeds are no longer required to register a domestic company. A Mauritian company does not require a Memorandum and Articles of Association. A company is allowed to reduce its capital. Non-residents are taxable only on Income derived in Mauritius. purchase its own shares. Dividends paid by all resident companies are exempt from tax. Local tax laws and International tax treaties are the backbone of the tax structure. INTERNATIONAL TAXATION Mauritius is a preferred investment destination because of the attractive fiscal framework it offers. Domestic as well as Global business companies are taxed at the same rate of 15%. Gains or profits on sale of securities are exempt from taxation. acquire/redeem shares. The tax system is based on a Residence Rule. and repurchase its own shares provided it satisfies a solvency test requirements. Many investors use this platform to invest in emerging economies worldwide such as India. . China and others.requirements of the OEDC¶s report on harmful tax competition. give financial assistance.
and underdeveloped (low development) countries. social and political environment. The statistic is composed from data on life expectancy. Companies use a country risk assessment to identify and map potential threats to trade and investment activities Determine country Risk Assign Ranking to each Risk Country Risk Assessment Develop a Risk Map Determine if Risks are business Prohibitive . developing (middle development). education and per-capita GDP (as an indicator of Standard of living) collected at the national level HDI Rank Rank Mauritius 81 India 134 Country Risk Assessment Country risks are potentially adverse effects on your business operations and performance caused by nuances in a country¶s legal.Human Development Index The Human Development Index (HDI) is a composite statistic used to Rank countries by level of ³Human Development´ and separate developed (high development).
On the other hand. 200. 5. 31.32.496 (2005) . It is divided into 100 cents. 1000. The notes of Mauritius come in denominations of Rp 2000. 27. 29.Country Risk Assessment for : y y y y Identify risk Associated with doing business in a foreign country Discover barriers to your potential overseas operations Project future risks due to changing political and legal climate Determine if outsourcing or off shoring in right for you Risk Sovereign risk Currency risk Banking sector risk Political risk Economic structure risk Mauritius September 2010 B BB BB A B India: October 2010 BB BB BB BBB BBB Currency Mauritius currency is known as Mauritian Rupee. 100. the coins of Mauritius are in the denominations of Rp 5 and 10 and 1.973 (2008). 50 and 25. 31.624 (2009). The symbol for the currency of Mauritius is Rp. It is abbreviated as MUR. 5000.798 (2007). Exchange rates: Maurit ian rupees (MUR) per US dollar . 20 and 50 cents.656 (2006). 10.
6548 MUR 0.6724 MUR 0.67 MUR 0.642795 MUR 0.65 MUR 0.698 MUR 0.7163 MUR 0.642842 MUR 0.67 MUR 0.67 MUR 0.6583 MUR 0.6373 MUR 0.65 MUR 0.6818 MUR 0.6694 MUR .Value of Mauritian rupee with respect to Indian rupee On Monthly basis Indian Rupee Mauritian rupees 31 st March 2009 30 th April 2009 31 st May 2009 30 th June 2009 23 rd July 2009 30 th Sep 2009 31 st Oct 2009 30 th Nov 2009 31 st Dec 2009 30 th Jan 2010 28 th Feb 2010 31 st March 2010 30 th April 2010 31 st May 2010 30 th June 2010 31 st July 2010 31 st Aug 2010 30 th Sep 2010 14 th Oct 2010 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 1 INR 0.6593 MUR 0.613904 MUR 0.66 MUR 0.6858 MUR 0.
and Indian interests. preferential rates for storage. except in the offshore business center and the stock exchange. cement. whose objective is creation of a free trade area. and invested capital. Vehicles. followed by French. Most imports require a license and state enterprises control the import of rice. Government incentives targeting foreign investment The government offers a variety of investment incentives. meat. tea. which gives preferential rates of duty between member states. Businesses in Freeport receive exemption from company tax and tax on dividends. and furniture are subject to special excise duties of up to 360%. A value-added tax (VAT) of 12% is levied on all imports. and a waiver of income taxes on dividends for 10 years. There are few export controls. petroleum. at the 55% rate or higher. an exemption from import duties on capital goods and most raw materials. tea. and exemption from import duty and sales tax on finished goods and machinery. fish. The country is also a member of the Common Market for Eastern and Southern Africa (COMESA). Mauritius is a member of the South African Development Community (SADC). gold. coral. for industries in the Export Processing Zone. All foreign investment must obtain approval from the prime minister's office. vegetables. free repatriation of profits. and sugar. Imports of goods from other countries. Taxes on imports from the preferred list are levied at 0% to 80%. alcohol.Trade Barriers Mauritius maintains a list of preferred trading partners to which it gives preferential tariff rates. South African. cigarettes. . including. and shells. dividends. wheat. are subject to an additional 10% duty. except the need for licenses to export sugar. German. Foremost among foreign investors are those from Hong Kong. petroleum. textiles. fruits. halved port handling charges. flour. tobacco. live animals. a corporate tax exemption of at least 10 years. pharmaceuticals.
medicine. but increased to $55 million in 1999. In 1997. international marketing. toys. designed to streamline the investment process. computer services. Total foreign direct investment (FDI) was $33 million in 1996 (although because foreign investors have not been registering with the Central Bank since the abolition of exchange controls in 1994. it is generally cautioned that official statistics underestimate the amount of foreign investment in the country. FDI was estimated at close to USD 280 million. Mauritius has attracted more than USD 1 billion from foreign investors. In 2000. Ownership of investments serving the domestic market was limited to 49%. mainly due to investments from South Africa in the banking sector.7 million in 1998. and management consulting was limited to 30% in 1997. most investments coming from South Africa. FDI inflow fell to $12. FDI inflow reached almost $260 million. In December 2000. and leather goods. .Foreign ownership of services such as accounting. FDI inflow rose to $56 million.). the Investment Promotion Act was passed. Following the reforms initiated in 2006. Not included is the increasingly important offshore financial sector. mostly due to France Telecom's purchase of a 40% share of Mauritius Telecom as part of their strategic alliance. law. garments. Most investments in Mauritius' Export Processing Zone (EPZ) have been in low-skilled manufacturing enterprises in textiles. In 2009.
. including the price of imports and the outflow of capital and gold.4 billion while merchandise imports totaled over $4. recorded a surplus of Rs 3. Current Account Provisional estimates for the third quarter of 2009 indicate that the current account deficit of the balance of payments narrowed to Rs 5. along with the total receipts from abroad. commercial services exports totaled over $2. Also in 2008. Capital and Financial Account The capital and financial account of the balance of payments.6 billion.505 million from Rs. Import and Export Snapshot for Mauritius According to the World Trade Organization. trade represented 135.9 billion.875 million.3% of Mauritius' GDP from 20062008. including the price of exports and the inflow of capital and gold. 752 million during the third quarter of 2009 compared to net inflows of Rs 5. inclusive of reserve assets. 760 million in the third quarter of 2008. recorded lower net inflows of Rs 1.Balance of Payment The Balance of Payments (BOP) is a systematic record of a nation's total payments to foreign countries. The overall balance of payments for the third quarter of 2009. 198 million registered in the third quarter of 2008. excluding valuation changes.5 billion while commercial services imports totaled over $1. In 2008. 8. merchandise exports totaled close to $2.
etc. machinery. etc. South Africa (9. Mineral fuels.1%) 3.Major Imports and Exports According to the International Trade Centre.7%) 3. nuclear reactors. Boilers. France (15.6%) 5. United States (8.2%) According to the International Trade Centre.6%) The top three countries which import merchandise to Mauritius. crustaceans. Articles of apparel and accessories made of knot or crochet (23. Electrical and electronic equipment (6. oils.1%) 3. Commodities not specified elsewhere (13.8%) Major Trading Partners The top three countries to which Mauritius exports merchandise. were: 1.1%) 5. distillations products. United Kingdom (30. were: 1. are: 1.1%) 2. along with percentage of exports. along with percentage of total imports.4%) 2. along with percentage of total exports. Articles of apparel and accessories not made of knit nor crochet (11. Fish. molluses.8%) 4. the top five import categories for Mauritius in 2008.9%) . along with percentage of imports. fish. Meat. (21. France (11. Sugars and sugar confectionery (12. and seafood food preparations (9.4%) 4.8%) 3. Vehicles other than railway (4.5%) 2. the top five export categories for Mauritius in 2008. and aquatic invertebrates (6. India (21. are: 1.8%) 2. (7.
especially through imports and thereby increasing value addition and productivity.India Mauritius trade relation The India Mauritius trade relations are a common forum of India and Mauritius Chamber of Commerce and Industry. India Mauritius trade relations are focused on the improvement of trade and business relations along the following lines: y y y y y y Trading policies Trading procedures Trade contracts Trade administrative and regulatory procedures Trade and investment opportunities Business networking India Mauritius Trade Relations policy adopted by India y Removing government controls and creating an atmosphere of trust and transparency to promote industrialization and trades. related to the entire Foreign Trade chain. to global standards. y Neutralizing inverted duty structures and ensuring that India's domestic sectors are not disadvantaged in the Free Trade Agreements/Regional Trade Agreements/Preferential Trade Agreements that India enters into in order to enhance exports. The Federation of Indian Chambers and Commerce (FICCI) and The Mauritius Chamber of Commerce and Industry represent the trade and business community of their respective countries. . y Modernization of infrastructural network. while attaining global standards of quality. y y y Simplification of commercial and legal procedures and bringing down transaction costs. Facilitating technological and infrastructural modification of all the sectors of the Indian economy. their common goal is to increase ethical business activities between each other. Simplification of levies and duties on inputs used in export products. Further. both physical and virtual.
MOU for setting up a Preferential Trade Agreement (2005). MOU for Cooperation on Consumer Protection and Legal Metrology (2005). MOU for Cooperation in the field of Hydrography (2005). amended in 1995).y y Revitalizing the Board of Trade by redefining its role. Agreement for Cooperation in Information Technology (2000). intelligence. Extradition Treaty (2003). MOU on Cooperation in Biotechnology (2002). MOU on Cooperation in the field of Environment (2005). Bilateral Investment Promotion and Protection Agreement (1998). Agreement on the Transfer of Sentenced Persons (2005). Supply Contract of one Dhruv . to strengthen and consolidate India Mauritius trade relations and to promote cooperation between the two countries the governments of both the countries are working in the lines of: y y y y Economy Commerce Formulate a Comprehensive Economic Cooperation and Partnership Agreement Investment and economic cooperation Bilateral Agreements with Mauritius: India and Mauritius have signed several bilateral agreements. Involving Indian Embassies as an important member of export strategy and linking all commercial houses at international locations through an electronic platform for real time trade. India Mauritius Trade Relations policy adopted by Mauritius y y y y Investment guarantees to promote joint ventures Identify items of trade and investment Boost bilateral trade Arrest illegal trade between the two countries Further. Air Services Agreement (1972. MOU on Cooperation against Terrorism (2005). and inquiry and information dissemination. MOU Concerning Cooperation in the Exchange of Finance Intelligence Related to Money Laundering & Financing of Terrorism (2008). Mutual Legal Assistance Treaty in Criminal Matters (2005). Some of the important agreements are the Double Taxation Avoidance Convention (1982).
rice. fish. printed books & newspapers. etc. . toys. glass & glassware. plastic. Agreement on Cooperation for the establishment of telemetry. aluminium. Cultural Exchange Programmes have been regularly concluded since 1971. MOU for the sharing of eprocurement platform of Government of Andhra Pradesh. yarn. Memorandum of Understanding on the supply of an Offshore Patrol Vessel. organic chemicals. Agreement on Early Warning of Coastal Hazards(2010). Main items of exports were petroleum products. Economic and Commercial relations: Bilateral trade between India and Mauritius over the last ten years is indicated below: (In Million US$) y Figures rounded off to the closest integer 200304 200405 258 200506 199 200607 738 200708 1089 200809 1007 200910 453 Year India¶s Mauritius India¶s Mauritius Exports to 203 Imports from 8 7 7 15 10 14 11 Bilateral Trade: India was the largest exporter of goods and services to Mauritius in 2007 and 2008. MOU on Plant Health Cooperation. made up textile. MOU on the setting up of Public Key Infrastructure (PKI) in Mauritius based on Indian PKI model. bovine meat. woven fabrics. tracking and telecommand station for satellites and launch vehicles and for cooperation in the fields of space research. footwear. ceramic products. A three-year Agreement was renewed between the Mangalore Refinery and Petrochemicals Ltd (MRPL) and the State Trading Corporation of Mauritius for supply of all petroleum requirements of Mauritius in July 2010.Advanced Light Helicopter. Protocol on the Sale of Navigational Charts. pharmaceuticals. In addition. science and applications. Supply Contract for the Coastal Radar Surveillance System (2009).
ISRO TTC Station. India¶s investment in Mauritius amounted to USD 10. 39252 tourists from India visited Mauritius in 2009. the GOI has extended eleven LOCs to Mauritius to assist in the development of its infrastructure human resource skills development. Mauritius remained the single largest source of FDI into India. Indian Oil Corporation. providing for 42. Mahanagar Telephone Mauritius Limited. provided they show sufficient funds to cover their stay. the Mauritian Government introduced a visa-free regime for Indian tourists. Conference Centre. During the State Visit of Mauritian PM Dr. Rajiv Gandhi Science Centre. 1032. India Handloom House. Line of Credits: Over the past forty years. . Telecommunications Consultants of India Ltd..Bilateral Investment: According to the Department of Industrial Policy and Promotion Foreign Direct Investment (FDI) inflows from Mauritius to India during the period April 2000 to December 2009 amounted to US$ 49..67 million in 2009. Swami Vivekananda Intl. New India Assurance. The total credit offered by India to Mauritius at the current exchange rate translates to Indian Rs. Cyber Tower. a credit line of US $ 100 million was offered to Mauritius by India. Life Insurance Corporation of India.11 billion.32% of the total FDI into India over this period. Under the regime. Rabindranath Tagore Institute. Visa Regime: In October 2004. Court House Building. World Hindi Secretariat set up jointly by GOI and GOM is located in Mauritius. project appraisal. including a grant component of 25%. Major Indian Assisted Projects: Mahatma Gandhi Institute. State Bank of India (Mauritius) Ltd.75 crores. Indian tourists visiting Mauritius for a period up to 60 days do not require a visa. Equipment for SubramaniaBharati Eye Hospital. Upgradation of Upadhyay Training Institute. All the LOCs to Mauritius have been extended on LIBOR rates of interests. Indian PSUs in Mauritius: Bank of Baroda. Jawaharlal Nehru Hospital. etc. NavinchandraRamgoolam to India in October 2005.
through the Cotonou agreement. no wonder its hospitality is legendary. any foreign investor can settle hassle-free in Mauritius and be operational in just 3 days. Today. where personal and corporate tax are harmonized at a low 15% and where dividends are tax free. Mauritians being naturally well-inclined and of a peaceful nature. While endowed with a small. The population boasts origins from the European and African continents. the country has moved from a mono-crop sugar-dominated economy to a sophisticated and diversified services oriented one. Mauritius has the highest adult literacy rate of the whole of Africa. Recently too. All Mauritians enjoy freedom of expression and of religion. Mauritius is now reaping the benefits of a strong commitment to free education for all initiated in the late 1970s. With the EU. business consultants. as well as from India and China. Mauritius is a rare example of social peace and unity in a multi-cultural society. With such a cosmopolitan legacy. financial analysts.Mauritius ± Open to the world WHY DO BUSINESS IN MAURITIUS . architects. Mauritius has secured preferential access to markets worth several hundreds of millions of consumers. with the US under the Africa Growth and Opportunity Act. In just three decades. most of who qualified from internationally recognized institutions and/or world class professional bodies: chartered accountants. corporate lawyers. the Government of Mauritius enacted legislation encouraging young foreign professionals to set up in the country. Mauritius is also a safe place to live. A country with no exchange control and Mauritius also has signed non-double taxation agreements with 33 countries. The Mauritian economy is one of the fastest growing in sub-Saharan Africa. IT engineers. tax specialists.MAURITIUS ADVANTAGE A melting point of the world's oldest civilizations. Add to this one of the world's most generous tax regimes. Mauritius also has a smart brand of fine professionals. with Eastern and . but increasingly affluent local population.
Mauritius has enacted anti-money laundering and terrorist financing legislation while the business framework itself has been made simpler. good governance and ethics. Commercial law in Mauritius is a combination of the English Common Law and the French Code Napoleon. The Government has ensured doing business in and from Mauritius is both easy and smooth and complies with best practices in terms of transparency. As a major platform to the countries of the region and much beyond as an investment spring board into the leading economies of India and China. Mauritius international business sector has also been growing fast as Mauritius is increasingly recognized as a safe and well-regulated jurisdiction from which to conduct global business. fully serviced business and industrial parks. BUSINESS OPPORTUNITIES Mauritius is pursuing a multi-pronged development strategy based on a liberal and open investment policy in order to achieve sustainable growth in a fast globalizing world economy. a web of sea links and direct air connections with several cities around the world. Mauritius offers interesting prospects for efficient international corporate structuring and tax mitigation. a free port. a modern and efficient port capable of berthing vessels up to 100 meters. An extensive and well maintained road infrastructure. through the COMESA (Common Market for Eastern and Southern Africa) and SADC (Southern African Development Community). The key elements of the strategy are: 1. Diversification of the industrial base 3. Consolidation of traditional industries 2. Harnessing the services industries of the future . Development of emerging sectors 4. well equipped and comfortable offices. Mauritius has a well developed network of internal and external communications. high band fiber cable connectivity. express courier service providers and freight forwarders.Southern Africa. a reliable fixed and mobile telephone network.
ENTERING MAURITIUS FOR BUSINESS Pro-business policies make it easy for corporations to do business in Mauritius. Agro-industries 2. Information Technology and Business Process Outsourcing 6.Mauritius offers excellent business opportunities in the following industry sectors: 1. Seafood and Aquaculture. Healthcare and Medical Travel 4. . Mauritius offers several ways in which one can enter and re-enter the country with relative ease. For the investor within the company. Renewable Energies and Environment 9. Logistics and Distribution Services 7. Financial Services 3. Manufacturing and Light Engineering 8. Hospitality and Property Development 5.
public-sector debt. On a year-on-year basis. spanning from 1 January to 31 December. Government has prepared a sixmonth budget for the period July±December 2009 for which the budget deficit to GDP ratio was 3. which includes general government debt and public enterprise debt.1 per cent in 2009. Except for the tourism sector.0 per cent in 2008/09 and. the ratio of budget deficit to gross domestic product (GDP) at market prices stood at 3. which is responsible for the formulation of monetary policy to be conducted by the Bank of Mauritius.1 per cent in 2009.Mauritius ± Recent Economic Development ± May 2010 Overview The Mauritian economy grew by 3.7 per cent in 2008. The key Repo Rate. up from a surplus of US$162 million in 2008.6 per cent in the preceding year. went up from 53. as scheduled. the ceiling prescribed in the Public Debt Management Act 2008. On the fiscal front. was reduced by 100 basis points. The Monetary Policy Committee (MPC). down from 14. the Bank¶s signaling rate. as from 2010. but was kept constant till year-end.75 per cent in March 2009.7 per cent in 2008 to 1.75 per cent to 5. The overall balance of payments registered a surplus of US$389 million in 2009. largely reflecting the impact of the global economic slowdown. The current account of the balance of payments. from 6. As a percentage of GDP at market prices. decelerated significantly to 2. posted a lower deficit of US$680 million in 2009. as measured by the percentage change in the yearly average consumer price index (CPI).5 per cent in 2009. Government has switched from a fiscal year budget to a calendar year one. met four times during 2009.4 per cent. that is. down from the 5. CPI inflation declined from 6.5 per cent in 2009. largely as a result of an improvement in the shortfall registered in the merchandise account. Inflation. The end-December 2009 level of . all major sectors of the economy registered positive growth rates. Broad Money Liabilities (BML) grew by 8.0 per cent as at end-December 2009.7 per cent as at end-December 2008 to 60. from 9. which registered a deficit of US$971 million in 2008.1 per cent recorded in 2008.
797 million at the end of December 2008 to negative Rs10. higher than the 5. currency with public rose by 6. while time deposits went up by 0. Claims on other sectors.1 per cent. went up by 1. represented 7.9 per cent in the preceding year. Net claims on budgetary central Government from the Bank of Mauritius fell by Rs6. Net foreign assets of depository corporations expanded by 17. . Savings deposits rose by 12.8 per cent in 2009 as compared to an increase of 21.2 per cent in 2009 as compared to an increase of 10.2 per cent in 2008. During calendar year 2009. Broad Money Liabilities (BML). down from 14.1 per cent in 2009.9 per cent as compared to an increase of 12.4 per cent in 2008.289 million at the end of December 2009. exclusive of the purchase of aircraft. Net foreign assets of the Bank of Mauritius rose by 16.2 months of imports as at end. Of the components of BML.3 per cent recorded in 2008 while transferable deposits rose by 19.gross official international reserves of the country. Securities other than shares included in broad money decreased by 49.1 per cent in 2009 as compared to an increase of 3. from negative Rs3.3 months of imports. that is.2 per cent in 2008.7 per cent in 2009 as compared to an increase of 14. lower than the increase of 13. Domestic claims of depository corporations.4 per cent in 2009 compared to an increase of 4. lower than the increase of 25.0 per cent in 2008. as laid down in the Bank of Mauritius Act 2004.1 per cent in 2008.527 million in the previous year. higher than the increase of 17.8 per cent recorded in 2008. Monetary and financial developments The primary objective of the Bank of Mauritius. The Bank uses the key Repo Rate to signal changes in its monetary policy stance.7 per cent in 2008.5 per cent in 2009 as compared to an increase of 15.492 million. grew by 8. the basic thrust of monetary policy remained geared towards promoting sustainable growth and low inflation.7 per cent noted in 2008. credit to the private sector grew by 0.December 2008.6 per cent in 2008.9 per cent in 2009. is to maintain price stability and to promote orderly and balanced economic development. Net claims on budgetary central Government rose by 6. the broadest measure of money supply. compared to a decrease of Rs3.2 per cent in 2009. excluding claims on GBL holders. taking into account the orderly and balanced economic development of Mauritius.
The domestic debt of budgetary central government increased by 16. As at end.7 per cent to 60. the Bank¶s policy rate.05-9. was reduced by 100 basis points.0 at the end of December 2008 to 8. Total external .75 per cent and 9. Banks adjusted their deposit and lending rates more or less in line with the change in the key Repo Rate.461 million at the end of December 2008 to Rs166. revenue stood at 22.The monetary base rose by 17. the range for the savings deposits rate and prime lending rate of banks was 4. reflecting a lower expansion of BML as compared to the monetary base.00±4.6 per cent (based on the GDP data for the six months ended December 2009). Debt developments Total public sector debt. rose from Rs142.169 million for the six months ended December 2009.75 per cent to 5. As a percentage of GDP at market prices. Government budgetary operations Since 1 July 2008.0 percent in 2008/09 and 3.75 per cent and 8. compared to a range of 5.744 million at the end of December 2008 to Rs125.9 per cent (based on the GDP data for the six months ended December 2009).3 at the end of December 2009.216 million in 2008/09 and to Rs33.75 per cent on 26 March 2009. consisting of domestic and external public sector debt.9 per cent in 2008/09 and at 22.611 million for the six months ended December 2009.9 per cent in 2008.4 per cent for the six months July-December 2009.9 per cent in 2008/09 and at 22. from 6.05-10. Revenue amounted to Rs62.872 million at the end of December 2009. Broad Money Liabilities multiplier decreased from 9. The budget deficit to GDP ratio was 3. total public-sector debt increased from 53.644 million at the end of December 2009. expense stood at 23.6 per cent.8 per cent in 2009 compared to an increase of 8. As a percentage of GDP at market prices.846 million in 2008/09 and Rs33.00 per cent at the end of December 2008. As a percentage of GDP at market prices. Interest rate developments The key Repo Rate. from Rs107. Government has been compiling and presenting fiscal statistics in accordance with the International Monetary Fund¶s (IMF) Government Finance Statistics Manual 2001 (GFSM 2001).00 per cent respectively.00±5.0 per cent over the same period.December 2009. Expense totalled Rs64.
Except for the tourism sector.6 percent recorded in the preceding year.Purpose Household Survey (CMPHS). ³Financial intermediation´ (11. with increasingly weaker global and domestic demand conditions and the absence of upward pressures from .500. The main contributors to GDP remained ³Manufacturing´ (19.1 per cent in 2008.9 per cent). total employment is estimated at 524. Inflation and price developments Positive developments in oil prices and food commodities on the global market in 2009 and their pass through to the local economy combined with favorable base effect and subdued domestic demand have contributed towards an easing of inflation.500 females.800 were males and 25.7 percent in 2009.budgetary central government debt increased by 32. of which 15.3 per cent. Final consumption expenditure grew in real terms. fell to 13.2 per cent in 2008.8 per cent.700 were females.7 per cent) and ³Transport. Real-sector developments The Mauritian economy grew by 3.300 males and 182. Based on the results of the fourth quarter 2009 issue of the Continuous Multi. lower than the rate of 6. from Rs12.6 per cent in 2009. from 16. by 2. Foreign investment in Government securities decreased by Rs34 million.1 per cent in 2009 compared to 5. and repairs´ (12. However. higher than the 3.2 per cent in 2008. comprising 342.7 per cent in 2009. Inflation risks have been skewed to the downside. renting and business activities´ (11.0 per cent in 2009 compared to an expansion of 7. with the male unemployment rate at 4.800 for the year 2009. Gross Domestic Fixed Capital Formation (GDFCF) registered a real growth of 9. The rate of unemployment is estimated to have increased to 7.1 per cent in 2009.0 per cent recorded for 2008.4 per cent). from 7.713 million to Rs16. which is defined as the ratio of Gross National Savings (GNS) to GDP at market prices. The savings rate.0 per cent). storage and Communications´ (10.887 million over the same period.9 per cent). The number of unemployed persons in 2009 is estimated at around 41.4 per cent and the female unemployment rate at 12. GDFCF grew by 5. ³Wholesale and retail trade. excluding the purchase of aircraft and marine vessel. from Rs301 million as at end-December 2008 to Rs267 million as at end-December 2009. which registered a contraction of 5.3 per cent. ³Real estate. all major sectors of the economy registered positive growth rates.7 per cent in 2008.
8 per cent and 2. The current account of the balance of payments. which registered a deficit of US$971 million in 2008. The endDecember 2009 level of gross official international reserves of the country. The gross official international reserves of the country. the country¶s reserve position with the IMF.303 million as at end-December 2009 from US$1. based on the value of the . As a result. inflation. that is. Consequently. by 1. and Government¶s foreign assets. the overall balance of payments registered a higher surplus of US$389 million in 2009.3 and 7. core inflation was between -1.5 per cent in 2009. Foreign direct investment in Mauritius recorded net inflows of US$259 million in 2009 compared to net inflows of US$383 million in 2008.5 in December 2008 to 117. largely as a result of an improvement in the shortfall registered in the merchandise account.7 per cent in 2008.5 per cent. namely CORE1. as measured by the percentage change in the yearly average consumer price index (CPI). The capital and financial account. for calendar year 2009. CORE2 and TRIM10 stood at 2. On a year-on-year basis.4 per cent.7 index points or 1.5 per cent in 2009. The Consumer Price Index (CPI) rose from 115. recorded net inflows of US$341 million in 2009 compared to net inflows of US$740 million in 2008. inclusive of reserve assets. Inflation. CPI inflation declined from 6. decelerated to 2.0 percentage points lower than the headline inflation. 3. made up of the gross foreign assets of the Bank of Mauritius. from 9. increased to US$2. External-sector developments Reserve position From a surplus of US$162 million in 2008.4 per cent respectively for December 2009. The Bank¶s measures of core inflation.7 per cent in 2008 to 1.international commodity prices. posted a lower deficit of US$680 million in 2009.786 million as at end-December 2008. has been on a path of rapid deceleration.2 in December 2009. in terms of both the year-on year basis and the annual average basis.
up from US$666 million as at end. .33 against the US dollar in 2007.2 months of imports as at end-December 2008. The short-term outlook suggests that inflation could be significantly below past trends at around 4 per cent until year-end but. private sector and monetary authorities stood at US$1. comprising the external debt of the Government.94 in 2009. The key Repo Rate was kept unchanged at the March 2010 MPC meeting. Exchange rates The rupee. but depreciated to an average of Rs31.47 per US dollar in 2008.076 million as at end-December 2009. further ahead. which traded at an average rate of Rs31. exclusive of the purchase of aircraft. Future prospects Economic growth for 2010 has been projected at 4. represented 7. higher than the 5. The stock of external debt of the country.December 2008. from US$49 million a year earlier.import bill for calendar year 2009. Public-sector external debt stood at US$1. public corporations.155 million as at end-December 2009. Private external debt increased to US$78 million at the end of December 2009. up from US$715 million as at end.3 months of imports. potential risks may stem from upward movements in commodity prices on international markets.December 2008. appreciated to a yearly average of Rs28.6 per cent on the back of the pickup in key sectors of the economy.5 percent of GDP. The budget deficit for 2010 has been projected at 4.
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