Dear Partners and Investors, Westimmo is delighted to share with you the latest developments in the National Budget 2024/2025, a crucial financial plan aimed at strengthening Mauritius’ resilience and adaptability in the face of global uncertainties. This budget, drawn up by Dr the Honorable Renganaden Padayachy, Minister of Finance, Economic Planning and Development, builds on past successes while paving the way for a prosperous future.
Strengthening Fiscal Stability
As highlighted by the International Monetary Fund (IMF) in its May 2024 report, reducing the fiscal deficit is essential to maintaining macroeconomic stability and controlling inflationary pressures. The 2024/2025 budget lays the foundations for achieving public sector debt of 71% of GDP by June 2025, ensuring a solid economic environment for investors.
Trade and Investment Promotion
For his fifth budget, the Minister has adopted a balanced approach aimed at strengthening trade and investment, accelerating the transition to a green and sustainable economic model, and building a resilient foundation for future growth. This tripartite focus underpins projected GDP growth of 6.5% for the current calendar year, and average annual growth of 5% over the medium term. Dr Padayachy has put in place a package of measures to revitalize trade and investment strategy, improve business facilitation and address labor shortages. This will bring reassurance to investors, both local and foreign, in this highly uncertain and increasingly competitive global environment.
Facilitation Initiatives and Incentives
The agency anticipates that the deployment of facilitation initiatives and incentives, including business facilitation measures, will be a key factor in attracting and maintaining high levels of investment in high-value economic activities. These measures will also improve confidence among local businesses, enable mindset changes and accelerate the adoption of sustainable and green business practices.
Continuous Business Support
As the island navigates an increasingly complex and inflationary environment, the government continues to support businesses, particularly SMEs and entrepreneurs, with a number of improvements to the financial aid already in place.
Sustainable Investment and Innovation
Initiatives are also planned to strengthen the island’s long-term competitiveness through investments in sustainability and artificial intelligence as levers for growth and transformation. Reforms have been proposed to develop, attract and retain talent, encourage technology and innovation, and enhance the attractiveness of ICT and financial sector activities in the face of growing competition from other international financial centers.
Measures for foreigners and non-citizens
- Employment of Foreign Workers :
- Food suppliers can hire foreign labor to alleviate labor shortages.
- Quotas on foreign labor will be abolished in the manufacturing, jewelry, free port and ICT/BPO sectors.
- The ratio of foreign to local workers in motor vehicle repair and maintenance will be revised to 3:1 to attract more foreign skills.
- The maximum period of stay for foreign workers in certain sectors will be extended from 4 to 8 years, with an optional break in between.
- The salary threshold for the Professional Occupation Permit will be reduced from MUR 30,000 to MUR 22,500.
- Three-month temporary residence permit pending Occupation Permit approval for professionals with at least 10 years’ experience.
- Non-citizens holding a Retired Residence Permit will be allowed to work without a work permit or additional occupation.
- Foreign ownership of real estate :
- Foreign entities will be able to hold real estate via non-renewable leases for industrial or commercial purposes for up to 30 years.
- Support from the Economic Development Board (EDB):
- EDB will support conferences and workshops attracting more than 12 countries with a minimum of 40 participants to increase visibility in Africa.
- The EDB Investment Certificate will now include pre-primary schools in addition to primary, secondary and tertiary schools.
- Non-Citizen Employment Restriction Act:
- Clarification of the criteria for determining whether a work permit application is complete.
- Issuance of work permits in various forms, including cards, as required.
- Veterinary Council Act :
- Temporary registration of authorized non-citizen veterinary surgeons if they work for a company or other organization in the veterinary field.
A Strategic Vision for a Prosperous Future
This budget underlines a proactive stance to secure the nation’s future, emphasizing the need for bold and strategic measures to propel Mauritius towards a high-income economy, achieve a GDP of Rs 1 trillion by 2029 and maintain this status over the long term. EDB will work with all partners to ensure the effective implementation of the trade and investment initiatives set out in this budget. The agency will continue to provide unwavering support to businesses large and small, and foster an environment where innovation thrives and opportunity abounds. Download the full budget: BUDGET and APPENDIX
