The African Development Bank has called on Mauritius to speed up structural reforms in order to tap into its significant capital potential and promote long-term, sustainable development. The Bank issued this recommendation during the release of its 2025 Country Focus Report for Mauritius, titled "Improving the Capital of Mauritius for Its Growth."
The report highlights that Mauritius maintains robust economic performance, with real GDP growth reaching 4.9% in 2024, a slight decrease from 5% in 2023. However, structural challenges and external disruptions continue to affect the nation's growth path. Major contributors to growth in 2024 were construction, financial services, trade, and tourism, as visitor numbers hit 1.38 million, equivalent to 97% of pre-pandemic levels. On the demand side, consumer spending and investment were the main factors driving this growth.
Although there are ongoing challenges, the report highlights the substantial potential that remains unexploited in Mauritius. In 2020, the country's total national wealth was valued at more than $96 billion—over six times its GDP—which includes human, financial, natural, and manufactured capital. Moreover, Mauritius' extensive ocean resources, within its 2.3 million km² Exclusive Economic Zone, present great possibilities for establishing a sustainable blue economy.
At the launch ceremony, Mahess Rawoteea, the Deputy Financial Secretary in the Ministry of Finance, expressed approval of the suggestions mentioned in the report. "We are assured that the structural changes mentioned in the 2025-2026 Budget Address will lead to substantial investments, especially in renewable energy, and help boost GDP growth," he stated.
Rawoteea highlighted the crucial importance of human capital in Mauritius' progress, while recognizing ongoing issues like the quality of education, mismatched skills, low involvement of women in the workforce, changes in population demographics, and the departure of young people. He revealed the creation of a Climate Finance Unit within the Ministry of Finance to address the nation's climate funding shortfall.
Mauritius is implementing institutional reforms to more effectively attract domestic and foreign capital and foster sustainable development," he said. "We are simplifying procedures, increasing transparency, and boosting the ease of conducting business. Environmental conservation, including tackling beach erosion, remains a major focus.
Rawoteea thanked the African Development Bank for its assistance, especially in attracting investments in renewable energy and the ocean economy—two areas seen as key drivers of future economic growth.
During his speech, Prof. Kevin Urama, the Bank Group's Chief Economist and Vice President for Economic Governance and Knowledge Management, highlighted Africa's vast opportunities for change. "With a commitment to investing in its own progress and utilizing its resources effectively, Africa can minimize reliance on outside support and leverage its significant capital for impactful growth," he stated.
Urama highlighted inadequate tax administration and flaws in revenue collection as key obstacles to progress, calling for a complete reevaluation of public financial management throughout the continent.
Wolassa Kumo, the Bank's Principal Country Economist for Mauritius, provided a summary of the report. The launch event drew in high-ranking government officials, development partners, private sector leaders, and representatives from civil society.
Present at the event were Hervé Lohoues, the Bank's Division Manager for the Country Economics Department responsible for Nigeria, East Africa, and Southern Africa, and Nontle Kabanyane, the Bank's Principal Country Programme Officer, who facilitated a panel discussion.
The committee examined methods to harness domestic capital more efficiently through enhancing institutions, refining regulatory systems, boosting transparency and responsibility, and advancing regional trade integration. Panelists comprised:
- Dr. Zyaad Boodoo, Ministry of Environment, Waste Management and Climate Change (natural capital), Mauritius?
- Mr. Sanjev Bhonoo, Principal Statistician, Statistics Mauritius (natural capital)
- Mr. Ricaud M. Auckbur, Chief Technology Officer, Ministry of Education and Human Resources (human capital), Mauritius?
- Ms. Zaahira Ebramjee, Head of National Economic Cooperation, Business Mauritius (business capital)
- Mr. Vikram Ramful, Head of Listing, Stock Exchange of Mauritius (financial hub)
Click here to download the report.
Copyright 2025 African Development Bank. All rights reserved. Distributed by AllAfrica Global Media (https://www.mountaintravel.my.id/).
Tagged: Economy, Business and Finance, Mauritius, Sustainable Development, International Organizations and Africa, East Africa, External Relations
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