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An Overview of the Mauritian Economy

GEOGRAPHY

Online Directory Location: Southern Africa, island in the Indian Ocean, east of Madagascar 20°17 S, 57°33 E;
Land Area: 1,865 sq km;
Capital City: Port-Louis;
Climate: Sub-tropical with temperature averaging 22°C to 27°C, Summer (October to May), Winter (June to September);
Time Zone: GMT + 4 hours


DEMOGRAPHY

Population: 1,233,380;
Workforce Population: 531,300 (2003);
Life Expectancy: Male: 68.4, Female: 76.4 (2005);
Literacy Rate: 15 years & above: 86% (2003);
Main Languages: English, French, Hindi and other oriental languages;
Student Enrolment: Primary: 126,226 (2004), Secondary: 105,827 (2004), Post-secondary: 25,685 (2003/04)

ECONOMIC INDICATORS (June 2004)

GDP at market prices: Rs 165,923 M;
GDP per capita (market prices): Rs 134,496;
GDP growth at basic prices: +4.0%;
Composition of GDP: Manufacturing: 30,536 M (Sugar: Rs 1,418M, EPZ products: Rs13,151M, Other: Rs 15,967M);
Financial Services (Financial intermediation): Rs 14,088M;
Tourism: (Hotels & Restaurants): Rs 8,845M;
Agriculture: Rs8,719M; Sugarcane: Rs 4,370M;
Other: Rs 4,349M
Total Exports: Rs 55,223M;
Total Imports: Rs 76,577M;
Overall Balance of Payments: Rs +3,225M; Tourist Arrivals: 718,861;
Inflation Rate: 4.7%;
Currency (Apr 2005): Mauritian Rupee (Rs.);
Exchange rates: 1 US$ = Rs 29.314, 1 Euro = Rs 37.916, 1 Ł = Rs 55.979

GOVERNMENT AND LEGAL SYSTEM

Political Status: A Republic;
Government: Parliamentary democracy based on the Westminister model. Elections are held by universal suffrage every 5 years. Last elections held on 3rd July 2005;
Head of State: President;
Head of Government: Prime Minister;
Legal System: Hybrid System drawing from French Napoleonic Code, English Law and the 1968 Constitution. The last Court of Appeal is the Judicial Committee of the Privy Council in the UK.

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TELECOMMUNICATIONS (2004)

Satellite Services: Maritime Radio Services, International Broadcast Services,Voicecast and VSAT;
Global connectivity: SAT-3/WASC/SAFE submarine fibre optic cable and satellite links.
Local connectivity: Fully digitalized network;
Fixed line connectivity: 350,000;
Mobile telephone connectivity: 525,000;
Internet users: 250,000; Computer Ownership among households with telephone connectivity: 29.4 % (NCB ICT Outlook 2002); Data Services: ADSL, ISDN, Leased Lines, Frame Relay; State-of-the-art-infrastructure.
Source: CSO; Mauritius Telecom; Telecom Plus;

A TRACK RECORD

Strategically located in the Indian Ocean, at the crossroads of vital trade routes between Europe and Asia, Africa and Australia, Mauritius has experienced, over the last two decades, uninterrupted economic development and growth averaging 5.7%.

In 1968, the newly independent small island economy was predominantly a monocommodity sugar-producer economy, devoid of any natural resources or mineral deposits, characterized by high unemployment, chronic balance of payments deficits, and minimum basic infrastructure, a pool of mainly civil servants and agricultural workers, and above all wholesome pessimism.

Today, Mauritius is referred to as Africa’s first tiger economy enjoying the status of "upper middle income" nation, with extensive state-of-the-art physical, social and education infrastructure, comfortable level of foreign exchange reserves representing 37.3 weeks’ imports (as at March 2005), a highly educated and productive workforce (literacy rate of 86%), and a robust and diversified welfare state economy - a successful model for other developing nations to emulate.

The making of modern Mauritius is the result of its hardworking people and leaders, its strategic partnership with the European Union, the USA, India and Africa, sound economic management, strong institutions, clear policy orientation, and the constant endeavour to move to a higher level of development.With its people as its greatest asset, Mauritius has realized a remarkable transformation in the last three decades from a mono crop economy to a diversified economy resting on Agriculture, Manufacturing,Tourism, Financial and Business Services and on the emerging Information and Communication Technology sector.

SELECTED ECONOMIC INDICATORS

YEAR

1968

1980

1990

2000

2002

2004

GDP (Rs. M)

827

8,697

39,629

119,494

142,319

174,900

Real GDP Growth (%)

-

-10.1

7.3

9.3

1.8

4.2

Consumer Price Inflation (%)

7

42

13.5

4.2

6.4

4.7

Population

794,746

969,872

1,058,800

1,186,873

1,210,196

1,233,380

Labour Force(thousands)

-

-

432

514

523.9

531.3 (2003)

Employment(thousands)

124.5*

196.5*

420.8

483.6

490.1

495.1 (2003)

Unemployment(thousands)

-

-

12.2 (2.8%)

45.0 (8.8%)

50.8 (9.7%)

54.4 (10.2%) (2003)

Per Capita Income(Rs.)

1,046

7,719

37,429

100,680

117,600

141,805

Exports of goods FOB(Rs.M)

354

3,341

18,246

38,845

47,938

55,223

Imports of goods CIF(Rs. M)

421

4,721

24,019

55,048

58,151

76,577

Tourist arrivals(thousands)

15,553

115,080

67,400

620,030

681,648

718,861

Literacy Rate (%)

-

-

81

85

86

-

Financial Year

68/69

80/81

90/91

2000/2001

2001/2002

2003/2004

Total External Debt(Rs. M)

-

-

14,234

28,408

29,722

25,625

Debt Service Ratio (%)

-

-

-

9.8

8.5

8.1

* employment in large establishments

Source: Bank of Mauritius & CSO

STATE-OF-THE-ART INFRASTRUCTURE

• Mauritius endowed with a reliable, efficient and supportive infrastructure, at par with the best available in developed countries; Massive investment made for the continuous upgrading of the overall infrastructure.

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• Extensive network of roads including a multiple lane highway linking the airport, in the southeast, to the north.

• Entire island is connected with electricity (stable power) and water supply for agricultural, industrial and household consumption. Industries can thus be located anywhere on the island.

• Well-developed digital network infrastructure; Excellent telecommunication facilities (ADSL, ISDN, high bandwidth international leased lines and high-speed internet access). 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, thus placing the island on the information superhighway. Mauritius Telecom, in collaboration with its strategic partner France Telecom, endeavours to provide high bandwidth global connectivity to the whole of the island at competitive rates.

• Airport/Harbour equipped to meet the full needs of both passenger and cargo traffic; Regular air and sea connections with the rest of the world with major airlines and shipping companies servicing the island.

• Fully serviced industrial buildings, industrial parks and IT habitats are available for plug and play type activities; Lease of industrial land on a long-term basis, from the State Land Development Company (SLDC), at very concessionary rates; The Ebčne Cybercity, a new generation knowledge and science park with state-of-the-art telecommunication facilities and modern office space, spreads over 64 hectares.

The SLDC, a public company created in October 2001; 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, the warehouse of State owned strategic land that can be leased to potential investors.

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