The OECD and Mauritius today agreed a three-year Country Programme to further strengthen and deepen co-operation aimed at supporting Mauritius on its policy reform journey to regain and maintain its status as a high-income economy.
OECD Secretary-General Mathias Cormann and Dr. Renganaden Padayachy, Minister of Finance, Economic Planning and Development, signed the Country Programme at a ceremony in Saint Louis, which also saw Mauritius become the first sub-Saharan African country to adhere to the OECD Declaration on International Investment and Multinational Enterprises, building on a decade of co-operation with the OECD.
The Country Programme will support Mauritius with analysis and best practice policy recommendations to help it address economic challenges and advance structural reforms aimed at improving the business climate. Work under the Programme will focus on strengthening institutions, corporate governance, the regulatory environment, and anti-corruption practices. It will also offer advice on efficient tax policies and on building a more transparent and globally comparable national statistical system.
"Mauritius' openness to foreign investment and trade has helped build a vibrant service-based economy focused on tourism, finance, and information and communications technology," OECD Secretary-General Mathias Cormann said. "Our deepening engagement will help Mauritius advance its ambitious economic reform agenda and continue the country's strong growth trajectory since independence in 1968. Over the next three years, the OECD Country Programme will enhance Mauritius' alignment with OECD standards, laying the policy foundations for a dynamic, environmentally sustainable, and technologically advanced economy."
Mauritius has also become the newest adherent to the OECD Declaration on International Investment and Multinational Enterprises. The Declaration is a policy commitment by adhering governments to provide an open and transparent environment for investment and to encourage the positive contribution that multinational businesses can make to economic and social progress. It adds Mauritius to the more than 50 countries that back and promote the OECD Guidelines for MNEs on Responsible Business Conduct.
An OECD Investment Policy Review of Mauritius, conducted as part of the adherence process and also released today, looks at how increased foreign investment could help Mauritius to improve export competitiveness, productivity growth, increase economic diversification, increase investment and value added in manufacturing as a share of GDP, and foster development of its labour market by upgrading skills and improving access to opportunities.
The Review highlights three priorities for reform:
- Foster a more business-friendly environment by designing regulations to attract long-term foreign investment that promotes spillovers of knowledge and technology.
- Improve monitoring and evaluation of investment policies to enhance predictability and efficiency in business procedures and support investment promotion objectives, especially in strategic sectors.
- Improve businesses' contribution to sustainable development by supporting responsible business practices.
"The Investment Policy Review of Mauritius is part of the OECD's effort to further support Mauritius' growth journey and its ambition to achieve a high-income status, which they briefly attained in 2020," OECD Secretary-General Mathias Cormann said. "Our work together and the country's commitment to implement the Declaration and the accompanying OECD Guidelines for Multinational Enterprises on Responsible Business Conduct will also strongly signal Mauritius' commitment to investment openness and responsible business conduct."
The Country Programme will be based on three pillars: Economic transformation and financial affairs, the Green transition and sustainable economy, and Social inclusion and welfare. It will seek to help Mauritius harness its potential for investment in areas like tourism, financial services and manufacturing and make use of its strategic location between Africa and the Indo-Pacific region.
The Country Programme will also provide a basis for Mauritius to share its experiences with other African countries by incorporating a cross-cutting component focusing on Africa's integration, in line with the OECD-Africa Partnership, and leveraging synergies through technical workshops and activities involving stakeholders from across the continent.
