Mauritius unveils ambitious Five-Year Strategy for Financial Services Sector
The financial services sector is recognised as the primary pillar of the Mauritian economy, directly and indirectly accounting for a quarter of total GDP and employing over 36,800 people, according to a recently published government strategy report titled ‘Rethinking the future of the Financial Services Industry’.
The report, published by the Ministry of Financial Services and Economic Planning, sets out a strategy to redefine the nation’s financial services industry with the vision of positioning Mauritius as the leading International Financial Centre (IFC) for Africa and Asia, anchored by sustainability, technology and excellence.
The five-year strategy seeks to future-proof the Mauritius IFC by enhancing the ease of doing business, accelerating product innovation, developing sustainable finance capabilities, promoting global partnerships and empowering a skilled and diverse workforce.
The report underlines the value of key financial services segments to the Mauritian economy, contributing 13.4% to the country’s total GDP of USD14.95 billion in 2024 which, it found, rose to 24.8% in gross value added (GVA) when indirect and induced effects were added in.
The Global Business Licence (GBL) segment alone contributed 8.2% to the island’s total GDP, while also attracting MUR15.4 million in corporate tax revenues in 2024, representing 68.2% of the total corporate tax take.
The total contribution of the financial services sector to employment was assessed at 36,854, or 6.3%, of which almost 20,000 jobs were direct.
Mauritius continues to strengthen its position globally, climbing two spots with a 15-point score increase to reach 58 out of 119 IFCs worldwide in the 37th edition of the Global Financial Centres Index (GFCI) published in March.
It was ranked fourth in the Middle East and Africa region, behind Dubai, Abu Dhabi and Casablanca in GFCI37, and was identified as sixth among the top 15 centres globally that are expected to grow in prominence over the next two to three years, underscoring its increasing appeal as a financial hub.
Despite this progress, the report candidly identified several challenges that must be addressed. These include delays in regulatory approvals, account opening hurdles for Global Business Companies, a lack of diversification in financial products and skills shortages, which were cited as hindering the sector’s full potential.
To respond to these challenges, the government has set out five key strategy pillars.
- Improving the Ease of Doing Business by:
- Implementing organisational reforms at the Financial Services Commission (FSC) to strengthen the regulatory framework, as follows:
- Modernise the FSC’s licensing processes through digital solutions.
- Introduce a “Known to the Commission” concept.
- Implement E-KYC for international clients.
- Revamp fee structures and proposal to introduce incentives for new products.
- Enhance training and awareness by the FSC.
- Reviving the tax working group for the financial services sector.
- Addressing local and international tax issues.
- Expanding correspondent banking networks.
- Establishing a conducive scheme for Development Finance Institutions (DFIs).
- Diversify and modernising product offerings by:
- Sustaining and diversifying beyond the Global Business model.
- Introducing an attractive framework for wealth management and family offices.
- Reviewing the fund ecosystem in Mauritius and facilitating the establishment of foreign fund managers in Mauritius.
- Enhancing accessibility to the Capital Market Sector in Mauritius.
- Refining the shipping registration framework.
- Boosting infrastructure investment, including by considering Mauritius’s accession to the Cape Town Convention to strengthen its position in aviation and infrastructure finance.
- Elaborating a National Fintech Strategy.
- Creating a Sustainable Finance ecosystem.
- Establishing a policy framework to attract international and digital banks and bolster loan and trade‐finance capacity in Mauritius.
- Attracting Venture Capital firms.
- Enhancing visibility of the Mauritius IFC through promotion and branding by:
- Providing an adequate budget for promotion and branding of the Mauritius IFC to support its marketing and enhance its economic performance.
- Developing a Unique Selling Point (USP) and Brand Identity for the Mauritius IFC.
- Setting up a dedicated promotional unit for the Financial Services Sector.
- Understanding and defining a public relations strategy.
- Strengthening branding through economic diplomacy.
- Diversifying Target Markets by:
- Developing an India strategy to sustain Mauritius’ position in the Indian market.
- Establishing a coherent Africa Strategy to position Mauritius as a business and sustainability hub for Africa.
- Developing Strategic Partnership Agreements and promoting awareness of trade frameworks.
- Positioning Mauritius as an ideal platform for Sustainable Finance markets.
- Addressing Skills Shortage by:
- Enhancing the role of the Financial Services Institute Ltd.
- Making financial services a critical sector for bursaries and scholarships.
- Work placement for local professionals with international firms.
- Redesigning the Expert Visa for the financial services sector to attract high calibre experts.
- Devising a Diaspora Engagement Policy in collaboration with the International Organisation for Migration.
Mauritius aims to increase gross value in the financial services sector from USD1.7 billion in 2024 to USD2.5 billion by 2030, improve net growth from 4.7% to 5.2%, and reach 45th place in the GFCI rankings.
Based on recent budgetary insights, there is no doubt that the deployment of AI and Fintech will allow Mauritius to enhance its processes at a regulatory level. These advancements will lead to increased efficiency and productivity.
With clear goals and stakeholder engagement at its core, the 2025-2030 strategy promises to not only revitalise the Mauritian Financial Services sector but also secure its place as a premier financial gateway to Africa, Asia and beyond.
