The first half of 2026 saw Mauritius record foreign direct investments (FDI) of Rs 19.11 billion, marking a 22.5% increase from Rs 15.6 billion in the same period last year. This growth is significant, especially considering the uncertain international climate, which includes the ongoing conflict in the Middle East and transportation tensions. According to Cédric Béguier, Head of Investment Strategy at AXYS Group, this progress indicates a level of confidence from investors.
However, Béguier emphasizes that the value of these investments depends on their economic and social impact. In 2025, the real estate sector attracted nearly 45% of FDI, while financial and insurance activities drew 39%. This concentration warrants careful consideration. Although real estate supports construction and services, it utilizes limited territory and generates relatively few permanent jobs. The challenge lies in balancing international attractiveness, access to housing, and the future needs of the economy.
The Economic Development Board (EDB) aims to attract between Rs 38 billion and Rs 40 billion in FDI for the financial year 2026-2027. Béguier believes this target is achievable on paper, especially since the Rs 19.11 billion recorded in the first half of 2026 could annualize to approximately Rs 38.2 billion over 12 months. However, FDI inflows can be irregular and sensitive to large transactions. The EDB has identified 523 private projects representing nearly Rs 650 billion in declared investments.
Despite these promising figures, several obstacles hinder investment, including administrative complexity, energy costs and availability, skills shortages, and infrastructure constraints. To address these challenges, it would be beneficial to track disbursed capital, implemented projects, and their impact. The Mauritian government aims to rely more on investment than consumption, a strategy that Béguier deems pertinent. This approach seeks to transform Mauritius from an economy heavily dependent on imports to one that produces more, innovates, and exports.
The 2026-2027 Budget outlines priorities such as artificial intelligence, digital technologies, high-value-added industries, renewable energies, blue economy, and food security. Béguier suggests that Mauritius should integrate these orientations into a 10- to 15-year national investment strategy, complete with stable priorities, measurable objectives, and a precise timeline. Public-private partnerships could play a crucial role in mobilizing capital, technology, and expertise for projects related to energy, ports, logistics, water management, and waste valorization.
Food security should also be a priority for investment, given that Mauritius' food bill has risen from Rs 35.8 billion in 2019 to Rs 61.3 billion in 2025, a 71% increase. This surge reflects international prices, logistical costs, exchange rates, and import needs, highlighting the country's vulnerability to external shocks. Partnerships between public authorities, investors, farmers, and businesses could modernize certain livestock sectors, develop agri-food processing, improve yields, and enhance storage.
To attract capital towards sectors with higher added value, Béguier recommends evaluating their contribution to local value-added, productivity, exports, skills, and vulnerability reduction. The development of renewable energies can reduce energy dependence; industrial modernization can boost competitiveness; and technology and specialized services can open new markets. Ultimately, human capital is essential, and it is crucial to align training institutions, universities, and businesses while promoting continuous training and access to emerging professions for young people.
Key points
- The Mauritian government aims to rely more on investment than consumption to transform its economy.
