Mauritius: African Development Bank Urges Bold Reforms to Unlock Capital and Accelerate Sustainable Growth in 2025 Report
The report notes that while Mauritius continues to post strong economic performance—recording real GDP growth of 4.9% in 2024, slightly down from 5% in 2023—structural constraints and external shocks continue to undermine the country's growth trajectory. Key growth drivers in 2024 included construction, financial services, trade, and tourism, with arrivals reaching 1.38 million, representing 97% of pre-pandemic levels. On the demand side, consumption and investment were the primary drivers of growth.
Despite the persistent challenges, the report underscores Mauritius' significant untapped potential. In 2020, the island nation's total national wealth was estimated at over $96 billion—more than six times its GDP—comprising human, financial, natural, and produced capital. In addition, Mauritius' vast ocean economy resources, within its 2.3 million km² Exclusive Economic Zone, offer immense opportunities for developing a sustainable blue economy.
Speaking at the launch event, Mahess Rawoteea, Deputy Financial Secretary at the Ministry of Finance, welcomed the recommendations in the report. 'We are confident that the structural reforms outlined in the 2025–2026 Budget Speech will unlock significant investments, particularly in renewable energy, and contribute to higher GDP growth,' he said.
Rawoteea emphasized the central role of human capital in Mauritius' development, while acknowledging persistent challenges such as education quality, skills mismatches, low female labor participation, demographic shifts, and youth emigration. He announced the establishment of a Climate Finance Unit within the Ministry of Finance to help bridge the country's climate financing gap.
'Mauritius is undertaking institutional reforms to better mobilize domestic and foreign capital and promote sustainable development,' he added. 'We are streamlining processes, enhancing transparency, and improving the ease of doing business. Environmental protection, including addressing beach erosion, is also a key priority.'
Rawoteea expressed appreciation for the African Development Bank's support, particularly in mobilizing investments in renewable energy and the ocean economy—two sectors identified as future growth pillars.
In his keynote remarks, Prof. Kevin Urama, the Bank Group's Chief Economist and Vice President for Economic Governance and Knowledge Management, emphasized Africa's broader potential for transformation. 'If Africa commits to investing in its own development and managing its assets efficiently, it can reduce external dependency and harness its enormous capital for transformative growth,' he said.
Urama cited weak tax administration and inefficiencies in revenue collection as major constraints to development, urging a fundamental rethink of public financial management across the continent.
Wolassa Kumo, the Bank's Principal Country Economist for Mauritius presented an overview of the report. The launch event attracted senior government officials, development partners, private sector leaders, and civil society representatives.
Among those in attendance were Hervé Lohoues, the Bank's Division Manager for the Country Economics Department covering Nigeria, East Africa and Southern Africa, and Nontle Kabanyane, the Bank's Principal Country Programme Officer, who moderated a panel discussion.
The panel explored strategies for mobilizing domestic capital more effectively by strengthening institutions, improving regulatory frameworks, increasing transparency and accountability, and deepening regional trade integration. Panelists included:
Dr. Zyaad Boodoo, Ministry of Environment, Solid Waste Management and Climate Change (natural capital), Mauritius?
Mr. Sanjev Bhonoo, Principal Statistician, Statistics Mauritius (natural capital)
Mr. Ricaud M. Auckbur, Chief Technical Officer, Ministry of Education and Human Resources (human capital), Mauritius?
Ms. Zaahira Ebramjee, Head of National Economic Collaboration, Business Mauritius (business capital)
Mr. Vikram Ramful, Head of Listing, Stock Exchange of Mauritius (financial capital)
Click here (https://apo-opa.co/46KmHkM) to download the report.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
About the African Development Bank Group:
The African Development Bank Group is Africa's leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information: www.AfDB.org
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