These reforms had considerable success in accelerating the rate of growth, reducing unemployment, and speeding up the pace of diversification of the economy through the development of new sectors.
These helped absorb the shocks of the 2008/2009 global economic recession and the Euro-zone crisis and set the stage for Mauritius to resume accelerated growth in 2010.
According to the World Bank report “Investing Across Borders” published in July 2010, Mauritius is one of the world’s most open economies to foreign ownership and one of the highest recipients of Foreign Direct Investment (FDI) per head of population.
Average FDI per head from 2005 to 2009 was USD 217.
Economic Reform: Mauritius’s economy suffered at the turn of the millennium as longstanding trade preferences in textiles and sugar -- the foundation of its growth strategy -- were phased out.
In 2005, the government embarked on a bold economic reform program aimed at opening the economy, facilitating business, improving the investment climate, and mobilizing foreign direct investment and expertise.
For a limited number of regulated activities in such sectors as tourism, sugar, and broadcasting, an application for the appropriate permit or license must be made to the competent authorities prior to start of operations.
Mauritius continues to improve its ranking on the global competitiveness index.Investment in Mauritius is governed by the Investment Promotion Act of 2000.Investment regulations are consistent with the WTO's Agreement on Trade Related Investment Measures (TRIMS).Consequently, the official projection for economic growth in 2011 is now at 4.1 percent while that for 2012 is estimated at 4 percent.FDI, which averaged USD 33 million annually for several years up to 2005, rose dramatically thereafter.The report indicates that Mauritius has the best quality of life and second best FDI strategy in Africa.FDI’s Countries of the Future shortlists are created by an independent collection of data by the FDI Intelligence division across 59 African countries.Openness to, and Restrictions upon, Foreign Investment Mauritius continues to be among the most competitive, stable, and successful economies in Africa, with a Gross Domestic Product (GDP) of USD 9.5 billion and per capita income of over USD 7,400 in 2011, one of the highest in Africa.Mauritius actively seeks foreign investment and prides itself on being open to foreign investment.Before starting operations, businesses must register with the Registrar of Companies.Regulations governing incorporation are contained in the Companies Act of 2001.