withholding tax on dividends, interests and royalties • No exchange control • Free repatriation of profits, dividends and capital • Duty free imports on equipment for selected activities • A network of double taxation avoidance treaties • Several Investment Protection & Promotion Agreements • A secure, reputable and growing international financial centre • A host of investment opportunities across several industries Manufacturing Sector The manufacturing sector has been one of the main pillars of the economy for more than two decades. In 2008, the manufacturing sector accounted for 20.1% of GDP, with textile and apparel contributing 5.4% and other manufacturing activities 14%. Investment in the sector reached Rs8.375 billion in 2007 while employment stood at 122,000 of which 63,800 people employed in exportoriented enterprises. Exports of manufactured products agro-based processed goods excluded - stood at Rs33.3 billion,
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Best of Mauritius
representing 57% of total exports. Textile and apparel products accounted for 87% of all exports of manufactured goods. Mauritius has witnessed industrialisation of a cyclical nature with significant investments in the textile and apparel sector during the mid 1980’s to mid 1990’s, due to the following enabling factors: • Trade preferences in the export markets, mainly Europe and the US • Low cost of production • Availability of labour • Fiscal incentives provided to the then EPZ (Export Processing Zone) companies After the 1980’s when textile manufacturing was based on EU preferential agreements, the sector underwent a period of vertical integration. Today, the manufacturing sector has become broad based, with transformation activities occurring in the fashion industry, high precision/light engineering, plastic moulding and electronic components manufacturing amongst others. The further development of the manufacturing sector now requires a new stream of investment aimed at the setting up of technologybased activities.