MANUFACTURING INDUSTRY

With more than 50 years of industrialisation, the manufacturing industry remains an engine of growth with a GDP contribution of 12.5% (2019). This industry has played an instrumental role in the economic diversification and transformation of Mauritius from a monocrop to a broad-based and forward-looking economy. Today, Mauritius has consolidated its reputation as a high quality and reliable supplier through a successful combination of trade, investment, and industrialization strategies. 

By virtue of our preferential market access (COMESA, SADC, IOC, EPA, AGOA, AfCFTA) to Europe, the USA and Africa, Mauritius exports 1,500 product lines to over 100 countries. Our country has developed a competitive edge in textile and apparel, seafood processing, sugar and agro-processing and has harnessed new segments such as medical devices, pharmaceutical products, high-end jewellery, Original Equipment Manufacturing (OEM), precision engineering, metal fabrication products and optical products. 

Despite a lack of natural resources, Mauritius has over the years focused on the production of high value added products for niche markets. The success of our manufacturing industry lies in its capacity to innovate and adapt to the changing needs of customers in a short lead time. With the advent of COVID-19 and its impact on global economy, Mauritius is gradually re-positioning itself as a Strategic Hub in the Region by promoting sustainability and digital technology. As per the last Productive Capacities Index (PCI) launched by UNCTAD, Mauritius is currently ranked as Number 1st in Africa.

The manufacturing industry consists of the following sub-sectors:

sub sectors

 

71 %

Total exports

97400

Employment

Rs 55 Billion

Value-added

570

Large establishments

Rs 4 Billion

Private Investment

    • Investment Opportunities

      Textile & Apparel:

      • Investing in high-end spinning and weaving
      • Production of sustainable apparel
      • Development of home & technical textiles
      • Productivity improvement AI and Robotic

      Seafood:

      • Processing plant 
      • Cold storage facilities
      • Processing of fish wastes/feed
      • Water pearl processing 

      Agro-Processing:

      • Vanilla
      • Coffee
      • Tea
      • Cereales (Casava)
      • Essential Oils

      Rum & Spirits:

      • Investing in Distillers for Alcoholic & non-Alcoholic Spirits.
      • Investing in the manufacture of Alcoholic & Non-alcoholic Bitters, Syrups etc.
      • Investing in Ready-to-Drink (RTD) cocktails distillers

       

    • Mauritius E-Directory of Exporters

      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.

  • The textile industry is considered as the catalyst of the Mauritian industrial revolution.  For the past 4 decades, the textile industry has played a key role by spurring economic growth and  attracting FDI from various countries, thus creating new employment opportunities and consolidating the manufacturing base of the economy.

    Evolving from a producer of basics in the 70’s to a vertically integrated supplier of high value added, design-led garments, the local textile industry is today geared to face challenges of a liberalized market place by providing flexible solutions adapted to the exact needs and requirements of buyers from all over the world. The local textile landscape is made up of a diversified base of manufacturers able to cater  for the needs  of a wide  spectrum of buyers with  a variety of options such as  price points, volumes and runs. Some of our leading entrepreneurial manufacturers have accumulated enough expertise to invest in additional production units  in  neighbouring countries, transferring knowledge to countries enjoying relatively low  labour costs,  while  providing the  right  degree of flexibility  for our clients.

    The efficiency, expertise and agility of the sector have contributed in positioning  Mauritius as a textile  hub  of excellence  in Southern & Eastern Africa, making our success story a business model  that  is currently being benchmarked  across Africa. The Mauritian manufacturers have the capability to supply a wide range of textile products at varying price points, with a focus on quality that includes T-shirts, lingerie and loungewear, shirts, sportswear, trousers and denim, children’s wear, pullovers, uniforms and beachwear to name a few.

  • Since the industrialization of Mauritius, the Agricultural Sector has evolved from a mono-sugar industry into a multi-agro products much oriented towards exportation. Today, the agro sector has emerged into the following four sub-sectors:

    Sugar 

    This sector has evolved from a mono-crop sector producing white sugar to a diversified cane industry producing special sugars, alcohol, molasses and ethanol. With the dismantling of a guaranteed price and abolishing quota with EU on sugar export, this sector is positioning itself by offering 15 types of special sugars, molasses and alcohol for exports. This sector has also re-engineered itself to produce electricity from bagasse, ensuring sustainability in energy production. Today the export of special sugar has increased to 120,000 tons targeting niche markets in some 45 countries.  Presently, the country is producing around 400,000 tons of sugar which is also being exported under the fair-trade label. Special sugars being produced include Demerara, Golden Granulated, Light and Dark Muscovado, amongst others.  Special sugars are used in a variety of food products including cereals, dairy products, dry baking mixes, beverages, preserves and jellies, ethnic cuisine, snacks, cookies and baby foods.

    Seafood 

    Mauritius has a total maritime zone of 2.3 million square kilometres with an Exclusive Economic Zone of 1.96 million square kilometres and a continental shelf of 396,000 square kilometres co-managed with the Republic of Seychelles. The Mauritius seafood hub has facilities for trading, transhipment, storage and warehousing, processing, distribution and re-export of fresh chilled and frozen raw or value-added seafood products. Fish products includes canned tuna, pre-cooked vacuum-packed tuna loins, frozen tuna loins/steaks, frozen fish fillets, fresh chilled whole fish/fish fillets, smoked fish, salted fish, fish oil and fish meal. The seafood processing sector has generated 6,000 direct employment and 10,000 indirect employment created from its ancillary services.

    Spirits and Beverages

    Historically, in 1638 when sugar cane was introduced in Mauritius from Java, the island settlers were producing “arrack” a precursor to rum. With the diversification of the sugar industry, sugar producers have opted for distilling sugar cane to produce alcohol as well as industrial rum from molasses. Distillation of cane juice is also being done to produce agricultural, flavoured and island recipe rums.  Other spirits being manufactured includes island wine, beer, vodka and liqueurs.

    Processed Foods 

    The Mauritius industrial set up also include the agro food processing industry which adds value to a variety of agro products. The major products include animal feed and fish pellets, edible oil, wheat flour, margarine, instant noodles, pasta, black tea, canned vegetables, biscuits and waffles, sugar confectionary and cake decorations, amongst others. The food industry also comprises SMEs who are involved in the manufacturing  of a range of products such as spices, pickles and chutneys, fruits paste, jams and marmalade, salted banana chips and frozen pre-cooked snacks that gives an authenticity to the unique Mauritian tastes.
     

  • Mauritius offers a number of benefits to international manufacturing companies to set up production units locally.

    These benefits include:

    1. Preferential market access through COMESA, SADC, EPA, AGOA, GSP, IOC, Turkey FTA & Pakistan FTA No import duties on equipment and raw materials
    2. No export duties
    3. VAT on raw materials is payable at customs clearance but reimbursable on exports
    4. Streamlined procedures for the recruitment of expatriates and foreign labour with an 8-year work permit policy for expatriates in the manufacturing sector
    5. Sea freight rebate scheme: Refund of 25% of the Basic Freight Cost to a maximum of USD 300 per 20-feet container and USD 600 per 40 –feet container exported to 45 eligible ports in Africa including Madagascar and Reunion.
    6. Investment Tax Credit for investment in high-tech manufacturing equipment
    7. Support for Trade Promotion & Marketing Scheme allowing 60% refund on air freight costs incurred on exports of textiles and apparels, fruits, flowers, vegetables and chilled fish.
    8. Accelerated depreciation on machinery, equipment and construction of industrial premises dedicated to manufacturing activities
    9. Acquisition of property for business purposes, by a non-citizen investor, is authorised
    10. Duty-Free and VAT free on goods and equipment imported into Freeport zones
    11. Exemption from corporate tax
    12. 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
    13. 3 per cent corporate tax on profits derived from exports of goods
    14. 8-year income tax-holiday for companies engaged in the manufacturing of pharmaceutical products, medical devices and high-tech products
    15. Tax Incentives for Research and Development (R&D)
    16. Accelerated depreciation of 50 percent per annum on capital expenditure incurred on R&D
    17. Companies can claim a double deduction in respect of qualifying expenditure on R&D until income year 2021-2022
       
    • Rum and Spirits

      Rum is the spirit of Mauritius. It is the connection of people and their heritage. When Sugar cane was introduced in Mauritius in the late 1500’s, it revolutionized local society, the reverberations of which are still felt today.  The labour intensive crop generated a demand for sugar on the European market which left a by-product in molasses - the raw material in rum production. From a dubious start and a vibrant history, rum in its diverse varieties and blends has earned a favoured place on the palates of those who frequent the roadside rum shop in Mauritius to the fashionable cocktail bars of Mauritius, London, Hong Kong, Germany and Paris. With a rich history of more than 40 years of industrialization, Mauritius has positioned itself as a sourcing destination of choice for quality and premium Rum and Spirits; winning various accolades from international tasting competition in trade shows and rum festivals.

      Mauritius is one of the few countries that produces both:

      Traditional Rum:

      • Rum from distillation of molasses, a residue of the sugar production.

      Agricultural Rum:

      • Rum from the distillation of fresh, fermented cane juice.

      The Mauritian spirit is emerging as a fast-developing subsector within the sugar cane industry.

      • 14 Rum Operators
      • 32+ Brands
      • 6 Big Distillers
      • MUR 945 M In Total Exports (incl. undenatured alcohol, beer, wine and other spirits)
         
    • Key Opportunities in the Rum and spirit sector

      1. Investing in Distilleries
      2. Investing in Craft Breweries
      3. Investing in Bottling plant

      Export Destinations : 

      Netherland, France, Kenya, South Africa, Madagascar & Seychelles etc.

      Tap into Mauritius’ MUR 1 Billion Spirits Industry : 

      1. Opportunities in value added products,
      2. Ideally located to exploit SADC and COMESA trade blocs,
      3. Generous incentives on tax, import tariffs and cost of doing business,
      4. Unmatched market access. Large and growing market opportunity in Europe, China, Africa, Northern America,
      5. Investor friendly environment,
      6. Dynamic industry,
      7. Supportive government,
      8. FDA approved,
      9. Freight advantage in terms of cost and time-to-market.


       

  • Fishing, Seafood & Aquaculture

    An Internationally Reputed Seafood Hub for Quality.


    A resource-rich maritime zone of 2.3 million km2, a modern seaport and logistics facilities, an enabling regulatory framework and a highly attractive fiscal regime make Mauritius a prime investment destination for the seafood sector. Comprising three established industry segments, namely fishing, aquaculture and seafood processing, the sector currently contributes some 1.3% to GDP and accounts for some 9.1% of export earnings.
    Mauritius ranks among the topmost African Caribbean Pacific (ACP) exporters of canned tuna to the European Union (EU) and is the 3rd external supplier in terms of overall volume of tuna loins to the EU market. Certification of fish and fish products for export primarily to Member States of the European Union (EU) is available locally.
     

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