The World Bank and the Mauritian government launched the "Report on Growth and Employment in Mauritius 2026" on October 7, 2026, at the Hennessy Park Hotel in Ebène. The report warns that Mauritius' economic growth potential could decline to 1.2% by 2050 if the country fails to reform its economic model. The report was presented in the presence of several high-ranking officials, including Sjamsu Rahardja, Resident Representative of the World Bank, Jyoti Jeetun, Minister of Financial Services and Economic Planning, and Dhaneshwar Damry, Junior Minister of Finance.
According to the report, Mauritius' current development model, which has been in place for fifty years, is gradually reaching its limits. The country's two long phases of sustained growth, driven by exports, have slowed down, with productivity decelerating and investment declining. The labor market is also facing challenges, including a shortage of skills, an aging population, low female participation, and youth unemployment. The report notes that the country's competitiveness is hindered by insufficient competition, energy and port constraints, and uneven adoption of digital technologies.
However, the report also offers a more optimistic outlook if Mauritius implements a program of reforms. With the right policies, the country's GDP growth could reach 5.2% by 2035 and 6.7% by 2050. This would lead to the creation of around 4,400 additional jobs and an increase in real wages of nearly 5.7%. The report also suggests that productivity gains could improve the incomes of around 37,640 jobs. Dhaneshwar Damry described the current period as a "decisive moment" for Mauritius, where the choices made today will determine the country's ability to create quality jobs, attract investments, and improve living standards.
The World Bank proposes a third phase of transformation for Mauritius, focusing on three key areas. The first area concerns institutions, including modernizing the competition framework, strengthening the Competition Commission, improving the governance of public enterprises, and adapting labor regulations without sacrificing fundamental protections. The report also recommends measures to promote women's participation in the workforce, such as subsidized childcare services, flexible working hours, and greater transparency in salaries.
The second area of focus is on skills development, including artificial intelligence, cybersecurity, data science, and behavioral skills. The report suggests that Mauritius should improve the alignment between education and employer needs, as well as the efficiency of the energy and port sectors. The third area focuses on innovation and digitalization of enterprises, with more accessible support for small and medium-sized enterprises (SMEs), digital advisory services, better public platforms, and secure data sharing.
The report estimates that the costs of implementing these reforms would be limited, and the acceleration of economic activity would generate additional revenue and strengthen the sustainability of public finances. Fily Sissoko, Director of Division at the World Bank, recalled that "Mauritius' success has always been based on its ability to adapt, innovate, and anticipate changes." The report was welcomed by several stakeholders, including Arnaud Lagesse from IBL and Rajah Ramdaursingh from EDB.
The Mauritian government and the World Bank are urging stakeholders to take action to implement the recommended reforms and ensure a brighter economic future for the country. The report's findings and recommendations are expected to inform policy decisions and shape the country's economic development strategy in the coming years. Key stakeholders will likely engage in further discussions and consultations to translate the report's recommendations into concrete actions.
Key points
- Mauritius' economic growth potential may decline to 1.2% by 2050 without reforms.
- A program of reforms could increase Mauritius' GDP growth to 5.2% by 2035 and 6.7% by 2050.
- The World Bank proposes a third phase of transformation for Mauritius, focusing on institutions, skills development, and innovation and digitalization of enterprises.
