Chandra D. Watkins

Mauritius, an island in the Indian Ocean, is located 1,000 miles off the coast of East Africa. With a per capita income of $3,000 and 6 percent annual growth in gross domestic product, Mauritius is considered an advanced developing country with strong growth prospects.

Mauritius has a mixed economy in which a strong private sector co-exists with state-owned enterprises. The economy depends heavily on external trade. The main foreign exchange earners are textiles, sugar, and tourism.

Mauritius is ready to begin the second phase of its industrial development. The country is in the process of diversifying its export base and is looking to manufacture high-technology products in the electronics and informatics sectors. The Mauritian government welcomes American technology, and has taken action towards liberalizing its trade and investment environments. Major trade liberalizations include import permits, tariffs, and foreign exchange. Import permit requirements have been abolished, except on a selected number of controlled products. Imports from the United States benefit from preferential tariffs, compared to the extra duty on goods from a few east Asian countries. Import tariffs have been abolished on raw materials used in the production of textiles, leather goods, jewelry, electronic components, printing, agricultural, and agro-industrial machinery. Foreign exchange has been completely liberalized on international transactions, and payments for imports are settled directly by commercial banks without prior approval of the Central Bank.

For American companies wishing to export to Mauritius, best prospects are machinery and raw materials, power generating plants and sugar mill equipment, agricultural machinery and parts, hotel and catering equipment and supplies, building construction, road work machinery and parts, pollution control equipment and services, port handling equipment, and port development services.

For American investors, Mauritius also offers an attractive investment climate and opportunities. Investment incentives include a 15 percent corporate tax during the whole life of the enterprise; tax-free dividends for the first 10 years of operation; free repatriation of earnings and capital; preferential access to loans from commercial banks and the Development Bank of Mauritius; availability of leased factory buildings in serviced industrial estates; ready access to the European Common Market through membership in the Lome Convention; and duty-free access to Preferential Trade Area (PTA) countries of Eastern and Southern Africa for products with 40 percent local value-added. Investment opportunities exist in the financial services, electronics, informatics, telecommunications, energy development and environmental sector.

For further information on Mauritius, contact the Commerce Department's Mauritius Desk at (202) 482-4564.

COPYRIGHT 1993 U.S. Government Printing Office

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