Mauritius must mobilise development financing at scale to deepen structural

Mauritius must mobilise development financing at scale to achieve high-income economy status, according to AfDB report
Economic growth projects at 3pc for 2026 with recovery to 3.8pc in 2027
Tourist arrivals reached 1.44 million in 2025, an all-time high
Inflation expected to breach central bank target at 5.7pc in 2026
Public debt projected to fall below 80pc of GDP in 2029

Mauritius must mobilise development financing at scale to deepen structural transformation, drive sustainable and inclusive growth, and realise its vision of becoming a high-income economy, according to the African Development Bank’s 2026 Country Focus Report and the Bank-commissioned Mauritius Productivity Study, both released on 29 July 2026. The CFR, titled Mobilising Mauritius’ Development Financing at Scale in a Fragmented World, has reviewed the country’s recent macroeconomic performance and outlook, quantified its development financing gap, and proposed reforms to strengthen financial systems in a rapidly changing global environment. The report projects that economic growth in Mauritius will slow to 3pc in 2026 before recovering to 3.8pc in 2027, supported by financial services, wholesale and retail trade, and tourism on the supply side, and by household consumption on the demand side.

Key growth drivers in 2025 included financial services, wholesale and retail trade, and tourism—with tourist arrivals reaching an all-time high of 1.44 million—while final consumption expenditure was the main contributor on the demand side. The report cautions that structural bottlenecks are hindering deeper economic transformation and long-term economic growth, including labour market rigidities, skills mismatches and an ageing population; infrastructure deficits in the water and energy supply and in port logistics; and gaps in information and communications technology (ICT). Inflation is projected to accelerate to 5.7pc in 2026, breaching the central bank’s monetary policy target range of 2-5pc, due to the impact of the conflict in the Middle East, before easing to 3.9pc in 2027 as global commodity prices ease.

Despite the government’s strong commitment to fiscal consolidation, public debt remains elevated, constraining fiscal space. The fiscal deficit is projected to narrow to 6pc of GDP in 2026 and 3.7pc in 2027 on the back of growth-friendly consolidation measures, with public debt projected to fall below 80pc of GDP in 2029. The Bank also presented the key findings of the Mauritius Productivity Study, commissioned to inform the preparation of the Mauritius Vision 2050 and the Ten-Year National Development Plan. The study assesses the causes of productivity slowdown and challenges hindering deeper structural transformation, and how to boost digitalisation, Industry 4.0 adoption and competitiveness. It identifies emerging growth pillars, including the ocean economy, the digital and knowledge economy, the circular economy, and the creative and cultural industries.

Kevin Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management, shared “by adopting good practices in domestic revenue mobilisation, improving efficiency in public expenditure planning, public finance and debt management, mobilising investment from Africa’s institutional investors, the African diaspora and high-net-worth individuals, and addressing informality, the continent can mobilise capital at scale to finance its development.”