Vision 2030: An inclusive high-income country

The government has outlined its plan to make Mauritius a High-Income Country. A new development model has been elaborated to give a new impetus to the transformation of Mauritius.

Mauritius has undergone a complete transformation since independence. From a primarily agricultural economy, it has transitioned into a well-diversified economy with agroindustry, manufacturing, financial services, tourism, retail trade and information and communication technology (ICT) as main pillars. Ocean economy, renewable energy, knowledge centre of excellence and medical hub are also emerging strongly as growth sectors, creating more remunerative employment for Mauritians. 

Today, Mauritius has a gross national income (GNI) per capita of USD 9,740, compared to below USD 200 at Independence. However, rising income has eroded the competitiveness of some export-oriented manufacturing industries vis-à-vis lower-income countries with cheaper labour. This, together with an ageing population, is threatening future growth. Compounding the problem are structural issues that impede further progress up the value chain. These include inadequate levels of education and hence human capital development; poor linkages between foreign direct investment, small-medium enterprises and socio-economic development; a lack of innovation; and the need to increase the effectiveness of Government and public service. Meanwhile, the country’s ability to achieve growth that is inclusive and equitable has been impeded, with the worsening of main measures of income inequality in recent years.

Vision 2030: Development Model

A new development model has been elaborated to give a new impetus to the transformation of Mauritius. It aims to jumpstart a new phase of high growth with shared prosperity and enhanced quality of life, ultimately transforming Mauritius into an inclusive, high-income country by 2030 – the Vision 2030. This Vision 2030 Development Model has identified growth sectors that have the potential to accelerate growth. As such, growth enablers have also been identified with accompanying strategies to develop a range of Mauritian industries; to improve the productivity of the growth sectors; and to enhance the capacity to compete on an international scale. To keep development of these growth sectors and enablers on track, this Three-Year Strategic Plan has been prepared to provide short to medium term strategic directions and targets against which progress can be evaluated. The goals for each enabler and sector are detailed below.

Growth Enablers

Good governance is a pre-requisite for a conducive business environment that allows these growth sectors to thrive. Government will, through the constitutional bodies, improve transparency, effectiveness and efficiency in the delivery of public services.

Public order and safety will be strengthened. These good governance attributes will facilitate further economic and social development, and attract more private and foreign direct investment.

Public infrastructure will also be upgraded. New transport infrastructure will be constructed while the capacity of the existing ones will be increased to enhance efficiency. 

Energy and public utilities will tap on more local renewable sources to ensure sustainability, as well as to encourage investment in storage energy. As we build our fixed capital, human capital must also be increased concurrently to realise the Vision. 

The education system will be transformed to deliver the next generation of leaders with deep skills by ensuring that all Mauritians – the most precious asset of the country – have access to quality education and that the curriculum equips Mauritians with the knowledge and skills required by the economy. These will complement strategies for the labour market to improve employment and employability through the better matching of skills that is needed in an age of rapid digitisation. Together, these initiatives will also ensure that the growth we achieve is inclusive.

In terms of foreign affairs and international trade, the key focus is to expand the economic space for Mauritian firms through enhanced economic integration and cooperation. A bigger market will help local firms reap economies of scale and strategic partnerships will enable Mauritius to acquire technology.

Thus far, the strategies have been focusing on raising the quantitative standard of living of Mauritians. To improve quality of life in its totality, other strategies will be adopted to address the needs and the lifestyle aspirations of the people.

Mauritius aims to develop an affordable and sustainable health care system, with a special focus on tackling problems associated with an ageing population. A high-quality health care system will also boost medical tourism.

Housing needs will also be given consideration, with the aim to ensure all Mauritian families have the capacity to own a decent home by 2030.

Other forms of social protection will be implemented to protect the vulnerable. The key thrust is to empower them economically so that they can be financially independent. Measures will be put in place to ensure that Mauritians have the opportunities to pursue their interest in arts, culture and sports. The environment will also be protected so that all can enjoy nature and the great outdoors.

Growth Sectors

The agro-industry sector will be expanded by increasing crop and livestock productivity, and developing higher value-added processing activities. This will, at the same time, enhance national food security.

The key strategy for the manufacturing sector relies on deeper integration with the regional economies. Enhanced support will be provided to micro, small and medium-sized enterprises to level the playing field for growth that is more inclusive.

By diversifying our tourist base and tourism product portfolio, the tourism sector will be able to enjoy sustained growth, both in terms of visitor arrivals and earnings. The goal is to enhance the reputation of Mauritius as a leading island destination.

Mauritius aims to become an international financial centre of substance. The product and service offering of the financial services sector will be broadened and deepened.

The ICT sector is expected to create more jobs by tapping the regional market for growth. This will be supported by enhanced infrastructure and human capital at home.

The ocean economy will move up the value chain by developing higher value-added products. This strategy will be pursued while ensuring marine and sea-bed resources are exploited in a sustainable manner. The enablers and growth sector strategies are interconnected and complement each other. Hence, they must be implemented through a Whole-of-Government approach, together with all segments of society working towards becoming an inclusive, high-income country by 2030.