Mauritius National Budget 2025-2026 Impact on the Financial Services Sector
The 2025-2026 Mauritius National Budget which has been themed ‘Abyss to Prosperity’, presents a roadmap for economic revitalisation, fiscal prudence, and institutional reform. For the financial services industry which has long been a cornerstone of the Mauritian economy, the Budget includes targeted measures designed to modernise regulation, expand financial products, and strengthen economic resilience.
A recent study by the University of Mauritius estimated that the financial services sector contributes closer to 25% of national GDP, compared to the official recorded 13-14%. This revised figure includes indirect, induced, and catalytic effects, demonstrating the sector’s expansive multiplier impact. For every MUR 1 generated yield an additional MUR 0.53 across the economy which indicates the sector’s role as a stabiliser and driver of growth.
Budget Highlights for the Financial Sector
The 25-26 Budget announced key initiatives to enhance Mauritius’ position as a leading International Financial Centre (IFC).
Diversifying Financial Products
- Bullion banking will be introduced as a new private banking activity, attracting global investors and creating new job opportunities.
- A dedicated licensing framework for Wealth Management and Family Offices will support integrated services spanning advisory, succession planning, and cross-border structuring.
Digital Modernisation and Regulatory Updates
- Launch of a unified e-licensing platform by the Financial Services Commission (FSC) which will be integrated with a centralised KYC repository and AI-assisted dashboards.
- Legislative recognition of electronic trade documents and e-signatures aims to streamline operations.
Africa Strategy and Global Transparency
- The government is rolling out a refreshed Africa strategy, supported by diplomatic engagements and institutional reforms, to cement Mauritius as a hub for Africa-bound investments and financing.
- Public-private partnerships, especially with development finance institutions (DFIs)
- The introduction of a National Roadmap ahead of the 2027 Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) evaluation to advanced Anti-Money Laundering (AML)/Combating of Financial Terrorism (CFT) training and skills mapping initiatives are planned to boost public-private sector capabilities and create more transparency.
The regulatory environment, though improving, is still facing challenges due to outdated laws and operational delays, particularly at the FSC.
“The reforms and further digitisation at the FSC are most welcomed. It is vital that Mauritius and its regulators continue the adoption of technology to make processes quicker and easier for businesses”, says Richard Neal, Commercial Director – Africa at Sovereign Trust. “We sit at the coalface in the effort to bring in more business and wealth into Mauritius. Key in our endeavour is providing fast and dependable service which can only be improved by our regulators becoming more digitized”.
The proliferation of Management Companies (MCs) without oversight poses potential reputational risks to Mauritius. The Budget promises reforms but further clarity is needed in terms of clear timelines, designated ownership, or accountability mechanisms.
“We can ill afford to face another FATCA greylisting or similar international sanctions due to wanting compliance, lacking accountability or regulatory oversight concerns”, says Neal “the momentum and successes we have gained over the past years in regulatory compliance should only be added to, keeping us ahead of our peers and potential detractors”.
A National Banking Skills Mapping Exercise and a Centralised Skills Database are being launched to better forecast and address human capital needs as the shortage of skilled talent remains a major constraint.
The Mauritius Budget does address that a long-term success will require deeper public-private collaboration, reskilling programmes, and incentives for international talent which we are due to learn more about in time.
The Budget addressed some taxation and policy pressure points:
- A Qualified Domestic Minimum Top-up Tax (QDMTT) under OECD’s GloBE rules will apply a minimum 15% rate to multinational enterprises.
- An Alternative Minimum Tax (AMT) of 10% on book profits will affect companies in select sectors.
- A Fair Share Contribution of 2-5% applies to corporates with chargeable income over Rs 24 million, while banks face an additional 2.5% levy on domestic earnings.
These fiscal reforms aim to support public finances but risk undermining Mauritius’ appeal as a low-tax jurisdiction. Striking the right balance will be important as not deter investor inflows.
The 2025-2026 Budget outlines ambitious and necessary reforms to position Mauritius as a more agile, transparent, and competitive IFC. However, execution remains key.
The progress of implementing these new frameworks will need to be monitored and tracked with clear lines of accountability to be able to fully harness its financial sector’s potential and capitalise on the opportunities. It is important that Mauritius must now shift from planning to decisive action.
