Mauritius has traditionally been an agriculture-based economy. Recent years have however seen the country undergo diversification in its economic activities, particularly going into various industries such as tourism, textile and apparel, and export processing.
In the early 70s Mauritius embarked on the promotion of tourism and the
establishment of export processing zones to create more jobs for its population
and jumpstart its economy. While it succeeded in providing employment
opportunities to its citizens, it also suffered labor problems since the export
processing zones were tolerated in practicing unfair labor practices. This led
to a host of other labor-related concerns such as lack of health and social
benefits for many of the country’s workers.
The country’s economy suffered a backlash in the late 70s when oil prices
increased and the balance of payments deficit steadily skyrocketed, reaching a
high of US$111 million. To aid its ailing economy, the country availed of
assistance from the International Monetary Fund and World Bank.
The Mauritian economy picked up in the succeeding decade as it benefited from
increased domestic savings, lowered inflation, and high employment rate. Also
garnering momentum was the export processing zones, which posted the best
figures and employed the biggest number of workers in the country. The said
sector had then outperformed traditionally proficient sectors such as sugar cane
production. The economy also got a boost from the tourism boom, as tourists came
in droves, and hotels and related infrastructure were established.
Today, the economy of Mauritius is one of the most dynamic and promising in the
African continent. In 2000,
a comprehensive competitiveness report ranked it number 2 out of 24 African countries. Its economy grows at an average annual rate of 5% to 6%. In 2005, the gross domestic product of the country was approximated at $16.28 billion for 2005, which is the next best in Africa behind Equatorial Guinea.
The driving force of the economy is manufacturing, as industrialists from all
over the world have come to the country to harness its vast natural resources.
As mentioned earlier, export processing zones is the country’s largest employer
and the main source of foreign exchange. Some of the more popular products from
this sector include goods such as clothes, electronic items, books and
magazines, and plastic products.
A traditional source of income for the Mauritian economy is sugar cane
production, which totals at least a quarter of the country’s export earnings.
Though it undertook a massive hit in sugar cane production in 1999, Mauritius
has successfully lured foreign investments to spur more trade in the said
sector. The economy has also been boosted by the financial sector, which has
contributed at least $1 billion in investments.
Another emerging sector that is contributing substantially to the economy is the
Information and Technology field. The Mauritian government is focusing on
speeding up the establishment of necessary infrastructure to connect more and
more households to Cyberspace, and in effect make the country a "Cyber Island".
As this field continues to emerge stronger and more dynamic, expect the economy
of Mauritius to become more vibrant in the coming years.
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