Sector Reviews

In its inaugural budget, the new government of Mauritius aims to steady the ship. Rather than key transformative changes, the Budget focuses on enhancing regulatory standards while significantly increasing the tax burden on banks.

The Government is investing in advanced skills development, particularly in Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). A unified e-licensing platform and centralised KYC repository will be deployed by the Financial Services Commission to improve regulatory oversight.

Another measure includes a request for a joint Financial Sector Assessment Program (FSAP) by the IMF and World Bank to evaluate and enhance the resilience of the financial system.

The Bank of Mauritius will launch bullion banking to drive investment and innovation. Legislative updates to the Bank of Mauritius Act and Banking Act will increase central bank independence, while a new resolution regime will ensure orderly handling of failed banks.

Further in the pipeline, digital finance gets a boost with the proposed Electronic Trade Documents Bill, granting legal recognition to digital trade instruments, and amendments supporting secure e-signatures. Meanwhile, streamlined licensing for wealth management and family offices aims to position Mauritius as an African investment gateway.

With all the measures considered in the Budget, the question remains whether these will boost the industry as we are all expecting...​

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The Budget provides the largest envelope of Rs900m to the Ministry of Tourism ever provided in a Budget with a strong desire to restructure this institution to support such a key sector of our economy.​

Operators will however remain expectant with a lack of clear measures or actions which seem to have been deferred to the Blueprint.​

The future of the Tourism blueprint seems to cover the right angles and challenges of the sector but there are some pressing issues such as labour shortages and coastal erosion that require urgent action.​

The allocation of Rs164m for restoration of natural habitats and prevention of beach erosion is a disappointing effort in trying to solve one of the biggest issues of the sector.​

​There is no mention of air connectivity apart from a desire to address it in the Blueprint.   ​

The capex plan for Rodrigues is a catch-up measure from previous budgets and will help boost Rodrigues' tourism industry.​

Some of the efforts mentioned in the Sustainability section of our report will help our island to be more sustainable and attractive to our tourists.​

To conclude, we remain expectant of the Blueprint and the decisive measures on the key challenges of this sector including labour shortages, air connectivity and sustainability. ​

Whilst most would agree that there are too many residential schemes and too many developments have been approved and generally that the smart city fiscal incentives were too generous, today's announcements are akin to killing the golden goose.

This government is handicapping the real estate sector which contributed 56% of FDI in 2024 by creating uncertainty, increasing levies and introducing the concept of capital gains tax on sale of properties. This will have an undesirable ripple effect on FDI, on the construction sector and on the unemployment rate.​

Hitting real estate promoters where it hurts and disincentivising investment in the sector: additional levy on profits, increase in land transfer tax and removing all fiscal incentives for new smart city promoters. ​

​The prices of properties under any EDB scheme should fall and sales velocity/liquidity should be impacted following today's announcements on registration duty and land transfer tax. Also affected are the resellers of properties, as they will face the higher of 10% of property value or 30% of realised gains.  The 30% capital gains tax in a well-publicised zero capital gains tax jurisdiction sends the wrong message to investors and will undeniably lower the attractiveness of Mauritius as an investment destination and may well sound the death knell for this sector, at least in the short to medium term. ​​

Agriculture and farming has not been a priority for the Finance Minister as evidenced by the lack of tangible game-changers for the industry and the well-repeated food security mantra ​

The land repurposing policy, food resilience scheme and Landscope's food security projects lack detail and clarity. ​

Government has shown this in respect of public services. Be it in the education sector, health sector and law and order sector, innovative and digital solutions are being contemplated to deliver these services. ​

With a focus on training in various public sectors, coupled with an effective administration of the health and justice system, the public in the end shall experience better outcomes. ​

Efficient management and capture of our water resources are in line with the Public demands. For infrastructure projects, the Government shall consider more enhanced involvement of the private sector. That endeavour shall foster a trusting relationship.

By ensuring that the Director of Audit report will be subject to scrutiny and debates in the National Assembly, this layer of transparency and accountability is welcome as part of the fiscal consolidation journey.​

By focusing on People’s aspirations wrapped through an innovation mindset, this shall drive real change in line with the Government mandate.​

The manufacturing sector has been struggling for a number of years to remain competitive particularly with labour shortages and increased costs of production. More value creation is expected from the sector.​

To put Mauritius back on the map particularly in an uncertain environment with trade wars and global instability, the Budget could have been bolder, providing real incentives to companies to innovate through R&D.​

The measures introduced for SMEs also fall short of the sector’s expectations, particularly among those who were anticipating relief through reduced costs and additional assistance.​

Some efforts have been made to provide tax rebates through additional investment tax credits for small businesses and double deductions for SMEs on expenditure such as costs associated with acquisitions of patents and franchises and expenditure related to set up costs of childcare facilities for employees.​

AI is revolutionising the manufacturing and SME sectors; yet the Budget offers limited direct incentives to support operators in this transition. According to the 2025 Global AI barometer Survey by PwC, workers with AI skills command a 56% wage premium. Operators will need to bear the burden of this investment to go up in the value chain and adapt. However, this shift also presents an opportunity to address labour shortages, enhance productivity, and generate broader value across the ecosystem. ​

The Budget announcements underscore the government’s strong commitment to advancing digital transformation through targeted financial investments.​

With the launch of its digital transformation blueprint, the Government has laid out a bold and strategic vision to modernise public services, empower citizens through technology, boost national competitiveness, and reshape governance, service delivery, and economic growth for the digital age.​

At PwC, we welcome the Budget measures that clearly reflect the government’s commitment to turning this vision into action. The planned investments in key areas of the public sector are a strong signal of progress. By embracing digitisation, the public sector stands to gain greater efficiency, enhanced transparency, and increased citizen trust—all of which contribute to better service delivery and higher productivity.​

​We’re also encouraged to see a clear focus on reskilling and workforce development, with Rs550 m allocated to equip citizens with the skills needed to thrive in a rapidly evolving digital economy.​

According to the PwC CEO Survey, Mauritian CEOs are optimistic about the potential of AI, with many expecting it to boost profitability within the next 12 months. However, trust in AI remains measured. This mirrors global trends, where enthusiasm for AI’s transformative potential is growing, but skills shortages continue to hinder progress. In Mauritius, the talent gap is particularly acute, with a limited pool of workers possessing the critical skills needed for AI adoption. Whilst the announcements and intentions sound promising, the challenges will remain in its successful implementation.​​