Mauritius economy has developed over the past decades from one that was considered low income to a middle income economy. The island nation located on the south east coast of Africa has made many economical strides since its independence in 1968. The island is expected to continue its economic growth throughout 2013. Mauritius economy steady increase is thanks to its growing manufacturing sector, offshore services sector, agriculture and tourism.
The cultivation of sugar cane makes up a quarter of the country’s export earnings. Almost 90% of the available land is under sugar cane cultivation. Mauritius exports its sugar to the European Union. Subsistence farming is a practice which is very popular in Mauritius. Fishing which has always been important to the locals of Mauritius has expanded into fish processing and exports.
Mauritius is a tax haven and its offshore services sector provides an enormous boost to the economy. The offshore services bring in a steady flow of revenue for the government and provide employment for locals. Mauritius has tax exemptions for offshore entities. Mauritius offshore products includes offshore companies, similar to Seychelles company, offshore banking, offshore trust formation. The tax exemptions act attracts foreign investors to the island.
Mauritius is heavily marketed as a tourist destination. The country has a steady flow of tourist visitors which has prompted the expansion of accommodations in Mauritius. Mauritius has a number of tourist attractions and there are many activities for visitors to the islands to enjoy. Flights to Mauritius are easy to get and access to the country is expected to be made much easier with the termination of the new passenger terminal.
Mauritius has little natural resources and exports but the government has been able to diversify the economy, maintain its growth whilst providing free education and free transportation for school children. Mauritius also provides free healthcare for its citizens. The economy of Mauritius is a positive example of the benefits of diversification and to improve the lives of the population the government is considering removing duty on imported goods.