Manufacturing - New Industries
Harnessing Technology & Innovation to move towards Smart Manufacturing
The Manufacturing landscape constitutes an integral part of the Mauritian economy and remains a priority sector for the Government towards becoming a high-income economy. In 2017, the manufacturing industry contributed 13.4% to GDP, representing an amount of MUR 54,328 million. The breakdown in terms of sub sector contribution are: Food (excl. sugar) 35%, Textile 29%, Sugar 1% and Other Manufacturing Activities 35%. In terms of employment, the manufacturing industry employed 97,600 people in 2017, representing around 20% of total employment.
The Mauritian manufacturing sector has greatly diversified since the early 1970s and now regroups some renowned companies covering a wide range of activities such as textile, food industry, high-end jewellery and medical devices. In fact, over the years the manufacturing sector has experienced a shift from traditional manufacturing to high value-added manufacturing, through the adoption of technology and automated processes.
The country’s ideal location in the Indian Ocean establishes it as an ideal trade hub between Asia and Africa. Trade is further facilitated through membership with regional trade blocs, but also through preferential trade agreements signed with several countries.
To attain defined objectives in terms of trade for sectors falling under the New Industries Cluster, specific trade initiatives have been put in place to optimise the visibility of locally manufactured products on the international scene. Participation to sector-specific exhibitions such as Bijorhca (Paris, France) for the jewellery sector, Vita Food (Germany) for the food processing sector or Micronora (Besancon, France) for the medical devices sector, are events which have been earmarked by the cluster this year. Additionally, Buyers-Sellers meetings for specific sectors are organised on a regular basis in targeted export markets.
The New Industries cluster will be at the forefront of EDB’s strategy to devise an appropriate roadmap for the development of the growth poles through investor targeting, capacity building as well as export promotion.
Specific high value-added and technology-intensive sectors are being targeted:
- Medical devices
- Technical textiles (Non-Garment & Apparel)
- Electronic component and devices
- Optical products
- High-end jewellery
- OEM manufacturing (automotive components, aircraft components etc.)
- Precision engineering
- Light engineering
- Food processing
- Printing & Packaging
Accordingly, new manufacturing growth poles have been identified to become the drivers of a new industrial chapter. These growth poles are high value-added niche sub-sectors, requiring specialised competencies, which should considerably increase the value of domestic exports in the medium to long term.
This strategy aligns with ‘Vision 2030’, presented in 2015, which is the Government’s assertion of a new industrial ambition, mobilising all players in this sector around a national approach to position Mauritius as a leading industrial country in identified key areas and markets.
Beyond offering an attractive fiscal package to domestic companies (Personal Tax, Corporate Tax and VAT harmonized at 15%), Mauritius also offers several specific benefits to international manufacturing companies to set up production units locally. These benefits include:
- 8-year income tax-holiday for companies engaged in the manufacturing of pharmaceutical products, medical devices and high-tech products
- 3 per cent corporate tax on profits derived from exports of goods
- No import duties on equipment and raw material
- No export duties in Mauritius
- VAT on raw materials is payable at customs clearance but reimbursable on exports
- Investment Tax Credit of 5% - 15% per year (i.e. 15% - 45% over three years) for investment in high-tech manufacturing equipment (the credit amount will depend on the nature of the activity)
- Accelerated depreciation of 50% on machinery, equipment and construction of industrial premises dedicated to manufacturing activities
- No Registration Duty and Land Transfer Tax on any transfer of a building or land earmarked for the construction of a building, to be utilised for setup of qualifying high-tech manufacturing activities
- Accelerated depreciation of 50 percent per annum on capital expenditure incurred on R&D
- Companies can claim a double deduction in respect of qualifying expenditure on R&D until income year 2021-2022
Preferential Market Access
- Preferential market access to major trade blocs namely, SADC, COMESA, IOC, AGOA, IEPA and Free Trade Agreements with Pakistan and Turkey
- Sea Freight rebate scheme of USD 300 for 20” container to major African regional ports
- Speed-to-market scheme allowing 40% refund in air freight cost for exports of textiles and apparels, jewellery, medical devices, fruits, flowers, vegetables and chilled fish
- Modern infrastructure for setting up factories
- Modern freeport and logistics facilities
- Sea and air connectivity through major shipping lines and airlines, respectively
- Adaptable and bilingual work force
- Streamlined procedures for the recruitment of expatriates and foreign labour with an 8-year work permit policy for expatriates in the manufacturing sector
- Acquisition of property for business purposes, by a non-citizen investor, is authorised
Availability of Industrial Premises
Landscope Mauritius offers industrial premises for long-term lease/ sale through the following industrial development projects:
- Riche-Terre Business & Industrial Park
- La Tour Koenig Industrial Estate
- Rose-Belle Business Park (comprising the Pharmaceutical Village)
- Cote d`Or City
- Industrial Buildings in Riviere du Rempart, Beau-Vallon, Bambous.