The African Development Bank (AfDB) made the call in the 2026 Mauritius Country Focus Report and Mauritius Productivity Study, released on July 29.
AfDB expects economic growth to slow to 3% in 2026 before recovering to 3.8% in 2027, supported by financial services, wholesale and retail trade, tourism and household consumption.
Tourist arrivals reached a record 1.44 million in 2025, helping financial services, trade and tourism drive economic activity.
However, labour market rigidities, skills mismatches, an ageing population and infrastructure shortcomings are constraining deeper transformation. The report also identified weaknesses in water and energy supply, port logistics and information and communications technology.
Inflation is projected to accelerate to 5.7% in 2026, above the central bank’s target range of 2% to 5%, because of the conflict in the Middle East. Inflation is expected to ease to 3.9% in 2027 as global commodity prices moderate.
The fiscal deficit is projected to narrow to 6% of gross domestic product (GDP) in 2026 and 3.7% in 2027, supported by consolidation measures. Public debt is expected to fall below 80% of GDP in 2029.
AfDB Chief Economist and Vice President for Economic Governance and Knowledge Management Professor Kevin Urama said African countries can mobilise more development finance internally. “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,” Urama said.
AfDB Deputy Director General for Southern Africa and Country Manager for Mauritius Moono Mupotola said both reports provide an evidence-based roadmap for strengthening resilience and productivity. “Real progress will require continued collaboration between the public and private sectors, development partners, academia, civil society, and financial institutions to translate these ideas into concrete reforms, investments, and lasting results,” Mupotola said.
The productivity study recommends greater digitalisation, adoption of Industry 4.0 technologies and improvements in competitiveness.
Emerging growth pillars include the ocean economy, digital and knowledge industries, the circular economy, and creative and cultural industries.
United Nations Development Programme National Economist for Mauritius and Seychelles Jamiil Jeetoo said development finance should be assessed not only by the amount mobilised, but also by the productivity and resilience generated.
–AfDB/ChannelAfrica–
