MEXA Welcomes Strategic Budget 2026/27 Measures to Strengthen Mauritius' Export Competitiveness

MEXA Welcomes Strategic Budget 2026/27 Measures to Strengthen Mauritius' Export Competitiveness

Article | June 22, 2026

The National Budget 2026/27 outlines a series of measures aimed at strengthening Mauritius’ productive sectors, enhancing export competitiveness, modernising logistics infrastructure and accelerating industrial transformation.

The budget is framed around four guiding principles – responsibility, solidarity, economic efficiency and social justice – and seeks to leverage digitalisation, support investment, modernise key sectors and expand economic opportunities.

Rebuilding the Industrial and Export Base

One of the major announcements for the manufacturing sector is the introduction of an Industry Bill, which will provide a modern legislative framework to rebuild the country's industrial and export base and reposition Mauritius as a globally competitive manufacturing hub and export platform.

Government has also announced the establishment of a new high-tech Special Economic Zone (SEZ) at Côte d'Or. The SEZ will be supported by a dedicated scheme to encourage investment in Artificial Intelligence (AI) and digital technology activities, creating new opportunities for innovation-driven exports.

As part of its ambition to accelerate export growth, Government has set a target of doubling exports of goods from USD 1.5 billion to USD 3 billion over the next five years.

Strengthening Food Security and Seafood Exports

The budget includes measures aimed at boosting local fish production and supporting seafood exports. Incentives will be provided to encourage:

  • Bank fishery activities;
  • Expansion of the semi-industrial fishing fleet;
  • Increased deployment of smart Fish Aggregating Devices (FADs); and
  • Investment in industrial banks and tuna fisheries.

These initiatives are expected to increase local fish production from 5,000 tonnes to 15,000 tonnes over the next three years.

Major Investments in Port and Logistics Infrastructure

Recognising the strategic importance of logistics and connectivity, the budget introduces several measures to modernise port infrastructure and enhance Mauritius' position as a regional maritime hub.

Key announcements include:

  • Implementation of the USD 1 billion Island Container Terminal Project under a Government-to-Government partnership with India;
  • Issuance of a second port operator licence for container handling, bunkering and transshipment activities;
  • Strategic port development investments worth approximately Rs 7 billion by the Mauritius Ports Authority and Cargo Handling Corporation Ltd;
  • Development of a 41-arpent mixed-use urban district adjacent to the Cruise Terminal; and
  • Amendments to the Freeport Act to enhance warehousing flexibility within the Freeport zone.

Changes to the Trade Promotion and Marketing Scheme

Exporters should note that the refund rate under the Trade Promotion and Marketing Scheme (TPMS) has been reduced from 40% to 20% for the current financial year.

Continued Support for Industrial Modernisation

The Government has extended the Investment Tax Credit Scheme supporting capital expenditure in the manufacturing sector until 30 June 2029.

The scheme maintains tax relief of 15% annually over three years (45% in aggregate) for investments in:

  • Plant and machinery;
  • AI technologies; and
  • Patents.

Unused tax credits may also be carried forward for up to ten years, providing greater flexibility for businesses undertaking long-term investment projects.

Renewable Energy Incentives Maintained

In a positive development for companies investing in renewable energy solutions, Government has clarified that photovoltaic systems and their key components, including solar panels, batteries, generators and inverters, will continue to benefit from VAT exemption.

Labour and Regulatory Measures

The budget also introduces several labour and regulatory reforms, including:

  • Amendments to the Economic Development Board Act to streamline Occupation Permit requirements;
  • Consolidation of the Professional Pass and Expert Pass categories;
  • A minimum monthly salary threshold of Rs 50,000 for Occupation Permit holders under the Professional Category;
  • Digitalisation of residence permits under the Immigration Act; and
  • Reforms to the national pension framework, including the introduction of the State Age Pension (SAP) from January 2027 and the creation of the National Pension and Provident Fund (NPPF).

Looking Ahead

The National Budget 2026/27 places considerable emphasis on industrial renewal, export expansion, investment promotion, digital transformation and logistics modernisation. While several measures provide opportunities for exporters and manufacturers to enhance competitiveness and invest in future growth, businesses will also need to assess the impact of certain changes, including the reduction in TPMS support and adjustments to fiscal measures.

MEXA will continue to engage with the relevant authorities and will keep members informed of implementation details as they become available through the Finance Bill and subsequent regulations.