About the Economy

Since independence in 1968, Mauritius has developed from a low income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. Average annual growth has been of the order of 5% to 6%. A great deal of importance has been given to foreign direct investment flowing in the country since the past few years. Mauritius has attracted more than 15,000 offshore entities, investment in the banking sector alone has topped to over $1 billion. The economy in 2000 grew by 8.9% and the Gross National Income per capita at market prices reached 101,948 rupees. Unemployment rate for the year 2007 is estimated at 9.3%.

Benefits of investing in Mauritius

1. Democracy and stability of Government
2. A very good infrastructure with superb communications
3. An excellent network of sea and air transport
4. A free market economy anchored on export oriented activities
5. A highly literate, bilingual and friendly labour force.
6. High standard of living
7. Favourable market access and very good incentives
8. An experienced financial sector providing excellent services

Stock Exchange in Mauritius

The stock Exchange of Mauritius Limited (SEM) was established following the Stock Exchange Act of 1988. The Act also established the Stock Exchange Commission (SEC), which controls and supervises stock exchange operations.

The Stock Exchange mobilises additional private and corporate savings to finance the increased investment needs of the economy. The SEMDEX- the all shares index - reflects capitalisation based on each listed stock, which is weighed according to its shares in the total market. The Government gives many incentives to companies, which are listed on the Stock Exchange. The Stock Exchange of Mauritius was recently promoted from the status of corresponding Exchange to that of affiliated securities markets within the Fedération Internationale des Bourses de Valeurs (FIBV) and is also a founder member of the African Stock Exchange Association (ASEA).

The stock market was opened to foreign investors in 1994 following the abolition of exchange controls. Foreign investors do not need approval to trade shares, unless the investment is for the purpose of legal or management control of a Mauritian company. The only restriction is that foreign investors can not have individual holding of more than 15% in a sugar company. There is no control on currency repatriation, and the currencies are fully convertible. Settlement can be made in foreign currency and foreign currency accounts can be opened in Mauritius.

Trading takes place five days a week and is conducted through an open outcry, order-driven and single-price auction system. Each share (excluding foreign shares) has a maximum +/- 6% price limit per trading session. A 1% brokerage commission is charged by stockbroking companies. There is no tax on dividends or capital gains.