Manufacturing – New Industries

The manufacturing sector remains a major GDP contributor (12.5% in 2019) of the Mauritian economy. Advancement in technology, changing consumer preferences, demographics, digitalisation are shaping the new manufacturing landscape. In line with Government’s Vision 2030 there is much emphasis on revamping the manufacturing industry through diversifying its industrial base and adopting a value-added strategy. Development of the Manufacturing- New industries (MNI) is geared towards production of high value-added products which represent opportunities for high growth and have great export potential.

  1. Some of the priority sub sectors which have been identified are as follows:
  2. Jewellery, watchmaking, precious stones
  3. Pharmaceutical and Medical Devices
  4. Original Equipment Manufacturing
  5. Chemicals and other related products
  6. Printing and Packaging
  7. Recycling
  8. Food processing
  9. Technical textiles (excl. garments)
     

4.7 %

GDP growth rate

31700

Employment

4.7 %

GDP Contribution

Rs 19.7 Billion

Manufacturing Value added

Rs 8.1 Billion

Domestic Exports

    • Trade Opportunities

      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. Targeted trade support programmes have been put into place to create increased visibility for locally manufactured products at the regional and international level.  The Economic Development Board assists local companies to promote their products by participating in events including specialized trade fairs in our main export markets namely South Africa, France, Germany and USA.

    • Investment Opportunities

      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:

      1. Medical devices
      2. Pharmaceuticals
      3. Technical textiles (Non-Garment & Apparel)
      4. Electronic component and devices
      5. Optical products
      6. High-end jewellery
      7. OEM manufacturing (automotive components, aircraft components etc.)
      8. Precision engineering
      9. Light engineering
      10. Food processing
      11. Printing & Packaging
    • Virtual Trade Promotion Platform

      As part of its online investment and trade promotion strategy in the current COVID 19 context, the EDB welcomes you to its ‘Virtual Trade Promotion Platform’ designed to showcase high value-added products manufactured in Mauritius. It will provide the opportunity for buyers to contact and schedule B2B meetings with Mauritian manufacturers.

      Click Here to view the platform.

  • Accordingly, new manufacturing growth poles have been identified to become the key drivers of a new manufacturing landscape. These growth poles are high value-added niche sub-sectors, requiring specialised competencies, which would 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:

    Fiscal Incentives

    1. 8-year income tax-holiday for companies engaged in the manufacturing of pharmaceutical products, medical devices and high-tech products
    2. 3 per cent corporate tax on profits derived from exports of goods
    3. No import duties on equipment and raw material
    4. No export duties in Mauritius
    5. VAT on raw materials is payable at customs clearance but reimbursable on exports
    6. Accelerated depreciation of 50% on machinery, equipment and construction of industrial premises dedicated to manufacturing activities
    7. Waiving of Registration Duty and Land Transfer Tax on the transfer of a building or land earmarked for the construction of a building, to be utilised primarily for  qualifying high-tech manufacturing activities
    8. Accelerated depreciation of 50 percent per annum on capital expenditure incurred on R&D
    9. Double deduction in respect of qualifying expenditure on R&D until income year 2021-2022

    Preferential Market Access

    1.Prefere ntial market access to major trade blocs namely, SADC, COMESA, IOC, AGOA, IEPA and Free Trade Agreements with Pakistan and Turkey
    2. Export Incentives ( to remove) 
    3. Refund of Basic Sea Freight Cost to the maximum of USD 300 per 20-feet to 49 major African regional ports in 20 countries
    4. Support for Trade Promotion & Marketing Scheme (TPMS) for Exports to Africa, Australia, Canada, Europe, Japan, Middle East Countries, and United States of America (USA) allows for 60% refund in air freight cost for all manufactured products except machinery, live animals, and chemicals until June 2021

    Business Environment

    1. Modern infrastructure for setting up factories
    2. Modern freeport and logistics facilities
    3. Sea and air connectivity through major shipping lines and airlines, respectively
    4. Adaptable and bilingual work force
    5. Streamlined procedures for the recruitment of expatriates and foreign labour with an 8-year work permit policy for expatriates in the manufacturing sector
    6. Acquisition of property for business purposes, by a non-citizen investor, is authorised

    Availability of Industrial Premises
    Industrial premises are readily available in Mauritius across the island. Prospective investors have a choice between buildings that have been developed by Government owned institutions such as Landscope Mauritius or alternatively, may consider premises that have been developed by private operators. 
    The EDB will facilitate the process for the identification of adequate premises based on the needs and requirements of investors. 

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