PORT LOUIS, Mauritius, August 12/APO Group: There is a need for Mauritius to mobilise development financing at scale to deepen structural transformation, drive sustainable and inclusive growth to achieve its vision of becoming a high-income economy. Economic growth is poised to slow down to 3 percent in 2026 before increasing to 3.8 percent, attributed to sectors such as financial services, wholesale and retail trade, and tourism on the supply side, and household consumption on the demand side.
The 2026 Country Focus Report (CFR) by the African Development Bank and the Bank-commissioned Mauritius Productivity Study was released on July 29. Themed, Mobilising Mauritius’ Development Financing at Scale in a Fragmented World, the study tracks the country’s recent macroeconomic performance and outlook, quantifying its development financing gap while advocating reforms to buttress the financial system in a rapidly evolving global environment.
The CFR, titled Mobilising Mauritius’ Development Financing at Scale in a Fragmented World, reviews the country’s recent macroeconomic performance and outlook, quantifies its development financing gap, and proposes reforms to strengthen financial systems in a rapidly changing global environment.
Key drivers of growth 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 reports also cautioned that structural bottlenecks are acting as impediments to deeper economic transformation and long-term economic growth, with areas of concern such as skills mismatch, ageing population, infrastructure deficits in water, energy supply and port logistics as well as gaps in the information and communications technology (ICT) sector.
Inflation is poised to hit 5.7 percent in 2026, breaching the central bank’s monetary policy target range of 2-5 percent, driven by the Middle East conflict, before easing to 3.9 percent in 2027, owing to softening global commodity prices. While the fiscal deficit is expected to trickle down to 6 percent of GDP in 2026 and 3.7 percent in 2027, attributed to growth-friendly consolidation measures, with public debt projected to fall below 80 percent of GDP in 2029.
Chief Economist and Vice President for Economic Governance and Knowledge Management, Prof. Kevin Urama commented: “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.”
While the Bank’s Deputy Director General for Southern Africa and Country Manager for Mauritius, Moono Mupotola underlined that the Country Focus Report and Mauritius Productivity Study are more than analytical publications: Together, they offer an evidence-based road map to help strengthen the country’s resilience, enhance productivity, while at the same time mobilising the necessary resources to help achieve its long-term development ambitions.
The Bank also presented the key findings of the Mauritius Productivity Study, commissioned to support 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 also taps into emerging growth pillars, including the ocean economy, the digital and knowledge economy, the circular economy, and the creative and cultural industries.
The UNDP National Economist for Mauritius and Seychelles, Jamiil Jeetoo, underlined that development finance should not be restricted by the volume mobilised, as well as the productivity and resilience generated.
