RONAK GOPALDAS, DIRECTOR AT SIGNAL RISK
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Mauritius is a country adept at reinventing itself. Not blessed with abundant resources, it has successfully transformed from an agrarian to a manufacturing to a services-based economy through a series of smart decisions and pragmatic policies.
Apart from adapting to evolving economic realities, the island nation has also realigned its strategic priorities and partners at various stages to manage the risk inherent in being a small open island economy.
But with their traditional markets no longer offering the stability and security of years gone by, policymakers have again had to adapt to a changing geo-political landscape. Declining growth prospects in Europe and the changing nature of financial relations with India in particular have amplified the risks of economic shocks.
A strategic pivot towards Africa, which had long been neglected (despite the country’s geographic location), was seen as the logical choice in the face of these headwinds. Indeed, since the turn of the decade when a conscious decision was taken to ramp up engagement with the continent, trade and investment with African nations has steadily been rising.
This strategy has yielded some positive results. Mauritius has signed a number of Double Taxation Agreements and currently has 23 Investment Promotion and Protection Agreements with countries across the continent, which have boosted intra-regional trade and investment.
Apart from adapting to evolving economic realities, the island nation has also realigned its strategic priorities and partners at various stages to manage the risk inherent in being a small open island economy.
But with their traditional markets no longer offering the stability and security of years gone by, policymakers have again had to adapt to a changing geo-political landscape. Declining growth prospects in Europe and the changing nature of financial relations with India in particular have amplified the risks of economic shocks.
A strategic pivot towards Africa, which had long been neglected (despite the country’s geographic location), was seen as the logical choice in the face of these headwinds. Indeed, since the turn of the decade when a conscious decision was taken to ramp up engagement with the continent, trade and investment with African nations has steadily been rising.
This strategy has yielded some positive results. Mauritius has signed a number of Double Taxation Agreements and currently has 23 Investment Promotion and Protection Agreements with countries across the continent, which have boosted intra-regional trade and investment.
