Investing in Mauritius in 2025: Economic slowdown, policy reforms, and strategic opportunities
Mauritius has demonstrated impressive resilience in the face of recent global challenges. In 2024, the economy expanded by 4.7 percent, underpinned by strong performances in tourism, financial and business services, and construction. Inflation—once a key concern—has been brought under control, and foreign reserves remain solid. At first glance, the country’s economic outlook appears positive. Yet beneath this surface strength lies a more complex reality. Structural weaknesses, external vulnerabilities, and mounting global uncertainties point to the need for bold, coordinated, and immediate policy action. In this context, Blue Azurite lays out what foreign investors need to understand about the risks and opportunities shaping Mauritius today. An IMF mission, led by Mariana Colacelli, recently concluded its 2025 Article IV Consultation with Mauritius. Its findings paint a portrait of an economy at a crossroads: outwardly stable, but increasingly vulnerable to structural fragilities, policy inertia, and external shocks. The message is clear—now is the time to recalibrate. Slowing momentum in 2025 Though 2024’s economic performance was laudable, the momentum will be harder to sustain. The IMF projects growth to slow to 3.0 percent in 2025, owing to weakening global demand, tapering tourism activity, and a severe drought impacting agriculture and infrastructure. This softening does not spell crisis, but it signals the end of the post-pandemic bounce. It also raises questions about Mauritius’ medium-term growth engine—one still reliant on external demand and vulnerable to climate volatility. Inflation Is falling, but monetary policy must stay credible The Bank of Mauritius (BOM) has delivered a soft landing on inflation. After hitting 7 percent in 2023, inflation declined to 3.6 percent in 2024 and fell further to 2.5 percent by March 2025. This improvement reflects a mix of global disinflation, especially in food and energy, and targeted domestic measures, including a cut in fuel excise duties. But success brings its own risks. With price pressures easing, the political and institutional drive to uphold a vigilant, rules-based monetary regime could weaken. The IMF has rightly called for the BOM to reinforce its policy framework and safeguard its operational independence. Looking ahead, the central bank must be ready to act decisively if inflation reemerges. A delayed or hesitant response would risk undermining the credibility it has worked hard to earn. Shrinking fiscal space, rising debt Mauritius continues to pursue an expansionary fiscal path. The primary deficit is projected to widen to 6.6 percent of GDP in FY 2024/25 (excluding grants), while public debt is set to reach nearly 90 percent of GDP by June 2025. These trends point to growing fiscal fragility. The IMF’s message is clear: a credible, medium-term fiscal consolidation strategy must begin in FY 2025/26. This means higher tax revenues, tighter control of current spending, and stronger fiscal governance. Crucially, reforms must be designed to protect vulnerable populations while restoring macroeconomic stability. The path to fiscal sustainability will be politically difficult, but economically unavoidable. Delaying reform would only deepen fiscal imbalances and raise the long-term cost of correction. External buffers are strong, but structural imbalances remain Mauritius’ foreign reserves rose to $8.4 billion in 2024—even as the current account deficit widened. These reserves provide an important buffer against external shocks. But buffers, while reassuring, are not a substitute for structural balance. Persistent external imbalances continue to weigh on the economy. A downturn in global growth, renewed trade uncertainty, or financial market volatility could quickly test Mauritius’ resilience. As the IMF underscores, improving external competitiveness is essential. This requires addressing long-standing inefficiencies in trade logistics, labor market flexibility, and investment incentives. It also calls for a clearer strategic positioning in a rapidly evolving global trade and financial landscape. Financial sector: Vigilance needed to safeguard stability Mauritius continues to hold its ground as a trusted International Financial Center. However, that status is not without risks. The IMF has called for sustained and proactive oversight of macro-financial vulnerabilities—especially those tied to global business companies (GBCs) and the real estate sector. Equally important is the Bank of Mauritius’ gradual withdrawal from the Mauritius Investment Corporation, a key intervention during the COVID-19 crisis. This exit must be carefully sequenced to avoid market disruption or unintended liquidity strains. As financial sector reforms advance, stability must remain the guiding principle. A steady, transparent approach is essential to preserving confidence and ensuring long-term resilience. Climate and competitiveness: The dual imperatives Macroeconomic management alone won’t secure Mauritius’ future. The most lasting gains will come from structural reforms aimed at transforming the economy’s foundations. Key priorities must include: These imperatives are deeply interconnected. A more competitive and climate-resilient Mauritius will not only help reduce external vulnerabilities—it will lay the groundwork for a more inclusive, durable, and sustainable growth model. That, more than any single policy lever, will shape the island’s economic trajectory. Investing in Mauritius: Opportunity amid complexity Mauritius remains an attractive destination for foreign investors—but success requires a nuanced understanding of evolving conditions. The macroeconomic environment offers reassuring strengths, yet emerging headwinds and structural challenges call for careful navigation. What’s working for investors What requires caution The bottom line Mauritius remains a strategically located, financially sophisticated economy with clear long-term potential for investors. But success requires more than timing—it demands patience, due diligence, and close attention to policy signals. Investors in local bonds, real estate, or financial services should closely monitor macroeconomic shifts and the trajectory of fiscal consolidation. At the same time, sector-focused investors—particularly in climate finance, agri-tech, and digital services—will find promising entry points, provided that ongoing reforms move from policy to practice. In this evolving environment, Blue Azurite offers on-the-ground expertise to help foreign investors navigate complexity with confidence. Based in Mauritius, the firm provides tailored support—from regulatory guidance and sectoral analysis to partnership facilitation. As reforms unfold and risks shift, trusted local insight can mean the difference between seizing opportunity and missing it.
Mauritius’ bold path to sustained growth in 2024: Opportunities for investors
Mauritius is projected to continue its pattern of above-trend growth in 2024. This positive outlook is supported by strategic government policies, an increase in foreign investment, and ongoing diversification of the economy. Blue Azurite gives you an insight into the factors contributing to this growth, the sectors driving it, and the implications for the country and potential foreign investors. An economic overview of Mauritius For many years, Mauritius has maintained robust growth rates compared to other African nations, thanks to its well-developed legal and commercial infrastructure and a transparent regulatory system. Despite the global economic challenges posed by the COVID-19 pandemic, Mauritius has demonstrated resilience and is poised to continue its growth trajectory. The country’s GDP, which contracted significantly in 2020, has rebounded strongly, with projections indicating a sustained above-average growth rate into 2024. Key drivers of growth in Mauritius These optimistic economic forecasts for Mauritius are driven by several key factors. Economic diversification Over the past decade, Mauritius has strategically expanded its economy into high-value sectors such as financial services, information technology, and medical tourism. This transition has been facilitated by government policies supporting sectoral development through subsidies, training programs, and international partnerships, making the economy less susceptible to sector-specific downturns and more resilient overall. Increased foreign investment The Mauritian government has implemented several initiatives to attract foreign direct investment (FDI), such as the Investment Promotion Act, which provides tax breaks and grants for foreign investors. Combined with Mauritius’ political stability and favorable business environment, these incentives have attracted companies in a wide range of fields, such as finance, hospitality, and renewable energy, leading to increased capital inflows and job creation. Development of infrastructure Over $500 million has been invested in critical infrastructure projects, including the expansion of the Mauritius Metro Express and upgrades to the SSR International Airport, not to mention other ongoing projects and those in the pipeline. These projects not only improve domestic connectivity and efficiency but also enhance the island’s appeal as a tourist destination and a hub for international business. Tourism growth The tourism sector, vital for Mauritius’ economy, has been revitalized through targeted marketing campaigns and partnerships with global airlines to increase flight connectivity. The government’s strategy to position Mauritius as a luxury travel destination has started to pay off, with a significant increase in high-spending tourists since late 2023. Renewable energy initiatives Mauritius aims to generate 40% of its electricity from renewable sources by 2030. Investments in solar and wind energy projects have been encouraged through incentives like feed-in tariffs and tax breaks. These initiatives should not only reduce energy costs and carbon emissions but also align Mauritius with global environmental goals, enhancing its international standing. The growth outlook for Mauritius in 2024 Several sectors will likely benefit from Mauritius’ 2024 growth outlook. Financial services The financial services sector is poised for growth with recent regulatory reforms designed to enhance transparency and combat money laundering. The introduction of fintech innovations such as mobile banking and blockchain technology over the past years has attracted new startups to the island. This has greatly contributed to diversifying the financial services landscape and providing new services to both local and international clients. Information and Communication Technology (ICT) The introduction of the Digital Mauritius 2030 Strategic Plan aimed to transform Mauritius into a fully digital economy thanks to initiatives to improve digital literacy, expand broadband access, etc. The development of smart cities is also being encouraged. Major tech companies have begun establishing research and development centers in Mauritius, boosting the Information and Communication Technology (ICT) sector. Real estate and construction The real estate market in Mauritius is booming, driven by both increased domestic demand and foreign investment. Development projects, such as luxury residential complexes and commercial properties, are underway across the island. It’s worth noting that the construction sector benefits from advanced building technologies and increased investment, which in turn stimulates growth in related industries. Agriculture and Significant efforts have been made to modernize agriculture, such as the adoption of hydroponics and smart agriculture technologies, which increase yield and reduce environmental impact. Blue Economy The blue economy is also expanding through sustainable marine resource management, aquaculture projects, and marine biotechnology, exploring new economic frontiers and contributing to food security. The bottom line Mauritius is on a promising path, with growth expected to remain above trend in 2024. But while the growth outlook is positive, Mauritius faces several challenges that could impact its economic trajectory. For instance, external shocks, such as fluctuations in global markets or geopolitical tensions, could dampen growth prospects. Therefore, Mauritius must continue to strengthen its economic resilience through policy flexibility and strategic planning. Blue Azurite is here to guide foreign investors seeking new opportunities in Mauritius. Contact us now to discuss with our team of experts how you can be part of this thriving economy.
An insight into the most promising industries for foreign investment in Mauritius in 2024
Mauritius is an island that no longer needs an introduction. Nestled in the Indian Ocean, at the crossroads of Africa and Asia, the island has become a hotspot for foreign investors from around the world with a wide range of attractive opportunities. So, if you’re keen on investing and starting a business in Mauritius in 2024, Blue Azurite gives you an insight into the most prominent sectors and factors you need to look out for. Foreign investors exploring opportunities in the burgeoning ICT-BPO sector, contributing to the development of smart cities, or venturing into healthcare or banking can find a welcoming environment in Mauritius. But while the country offers interesting investment opportunities in various sectors along with several benefits, it’s important for foreign investors to understand the regulatory framework and all the related formalities to be accomplished, depending on the industry they are targeting. Investment opportunities in Mauritius From official sources, the most prominent sectors for foreign investors currently are the following: Distinguishing between regulated and unregulated activities While the procedures related to many of these industries are quite straightforward, depending on the company structure you are opting for, some activities are regulated and, therefore, necessitate approvals from specific authorities. In most cases, companies need to register with the Corporate and Business Registration Department to be able to start operating. Unregulated activities In general, activities such as agro-industry, logistics, and manufacturing are unregulated, so they don’t require further procedures. Regulated activities Activities falling under the regulatory ambit demand careful consideration and adherence to specific approval processes. Below are some examples of activities that require appropriate permits before they can start operating: The bottom line Overall, Mauritius is an alluring destination for foreign investors seeking a dynamic and diverse investment landscape. The nation’s commitment to economic development, coupled with business-friendly policies, positions it as a promising hub for Foreign Direct Investment in 2024. Still, navigating the regulatory framework, obtaining requisite approvals, and staying informed about changes are pivotal to unlocking the full potential of these ventures. Blue Azurite is here to help you, from identifying opportunities in your targeted sectors to dealing with all the paperwork that it involves. Contact our team of experts now and get ready to start a new business venture in this tropical paradise.
