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    Country Risk Mauritus - 1

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    Joju Johny
    1) Ajanta Pharma invested $2 million in Mauritius six years ago to use it as a gateway to the African market, and is now targeting $6 million in business, a 30% growth. 2) Mauritius has requested Indian companies to invest in their port sector. Arvind Mills has started manufacturing units in Mauritius. 3) Mauritius has a low economic risk profile and welcomes foreign investment with incentives. It has experienced steady growth of 5-6% annually with its economy based in sugar, tourism, textiles and financial services.

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    Country Risk Mauritus - 1

    Uploaded by

    Joju Johny
    58 views15 pages
    1) Ajanta Pharma invested $2 million in Mauritius six years ago to use it as a gateway to the African market, and is now targeting $6 million in business, a 30% growth. 2) Mauritius has requested Indian companies to invest in their port sector. Arvind Mills has started manufacturing units in Mauritius. 3) Mauritius has a low economic risk profile and welcomes foreign investment with incentives. It has experienced steady growth of 5-6% annually with its economy based in sugar, tourism, textiles and financial services.

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    1) Ajanta Pharma invested $2 million in Mauritius six years ago to use it as a gateway to the African market, and is now targeting $6 million in business, a 30% growth. 2) Mauritius has requested Indian companies to invest in their port sector. Arvind Mills has started manufacturing units in Mauritius. 3) Mauritius has a low economic risk profile and welcomes foreign investment with incentives. It has experienced steady growth of 5-6% annually with its economy based in sugar, tourism, textiles and financial services.

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    58 views15 pages

    Country Risk Mauritus - 1

    Uploaded by

    Joju Johny
    1) Ajanta Pharma invested $2 million in Mauritius six years ago to use it as a gateway to the African market, and is now targeting $6 million in business, a 30% growth. 2) Mauritius has requested Indian companies to invest in their port sector. Arvind Mills has started manufacturing units in Mauritius. 3) Mauritius has a low economic risk profile and welcomes foreign investment with incentives. It has experienced steady growth of 5-6% annually with its economy based in sugar, tourism, textiles and financial services.

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    of 15

    Country Risk Management

    Mauritius

    Prof:S.B.Choughule EMIB-IIFT New Delhi

    Ajanta Pharma in Mauritius


    SIX years ago Ajanta Pharma invested $2 million in a pharmaceutical plant in Mauritius aiming to find a gateway to the African market. One of a handful of Indian firms that set up shop in the island at the time, the company is targeting a $6 million business in the current year, a 30 per cent growth over the previous year

    Investment in Port Sector


    Delegation of Mauritius Government had visited India and requested to Indian companies to Invest in their port sector. Arvind mill started manufacturing units in Mauritius Therefore risk analyzing is necessary

    Mauritius -A destination for Investment


    Area: total: 2,040 sq km land: 2,030 sq km water: 10 sq km note: includes Agalega Islands, Cargados Carajos Shoals (Saint Brandon), and Rodrigues Coastline: 177 km (India 7016KM)

    Population: 1,250,882 (July 2007 est.)

    Mauritius -country profile

    Hindu 48%, Roman Catholic 23.6%, Muslim 16.6%, other Christian 8.6%, other 2.5%, unspecified 0.3%, none 0.4% (2000 census) Languages: Creole 80.5%, Bhojpuri 12.1%, French 3.4%, English (official; spoken by less than 1% of the population), other 3.7%, unspecified 0.3% (2000 census Literacy: definition: age 15 and over can read and write total population: 84.4% male: 88.4% female: 80.5% (2000 census

    Economic Back ground of country


    Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. For most of the period, annual growth has been in the order of 5% to 6%. The economy rests on sugar, tourism, textiles and apparel, and financial services, and is expanding into fish processing. Sugarcane is grown on about 90% of the cultivated land area and accounts for 25% of export earnings
    GDP - composition by sector: agriculture: 4.8% industry: 25% services: 70.1% (2007 est.)

    Highlights of Economy
    GDP (purchasing power parity): $14.9 billion (2007 est.) GDP (official exchange rate): $7.757 billion (2007 est.) GDP - real growth rate: 5.5% (2007 est.) Unemployment rate: 9.2% (2007 est.) Population below poverty line: 10% (2001 est.)

    Foreign Trade
    Exports: $2.475 billion f.o.b. (2007 est.) Exports - commodities: clothing and textiles, sugar, cut flowers, molasses Exports - partners: UK 32.5%, France 15.1%, UAE 11.4%, US 8.3%, Madagascar 4.8% (2006) Imports: $3.627 billion f.o.b. (2007 est.) Imports - partners: France 14.3%, India 13.6%, China 8.6%, South Africa 7.3% (2006)

    LOW ECONOMIC RISK Mauritius is a successful African economy with nearly full employment, a favourable balance of payments position, and a Stock Exchange that is one of the fastest growing in Africa. Manufacturing, tourism, textiles and sugar cane processing are the main sectors. In August 1995 Mauritius joined the Southern Africa Development Community (SADC). Since independence in 1968, Mauritius has been a parliamentary democracy, with a good human rights record, an active free press and an independent judiciary. Since becoming a Republic within the Commonwealth in 1992 Mauritius has enjoyed a stable and sound economy. And therefore there is no economic risk

    No political risk
    The Alliance sociale coalition government is in power. The Mauritian Government actively welcomes foreign investment with a diverse range of facilities and incentives, including tax concessions and other investment incentives. Tax concessions and incentives have been extended not only to manufacturers in the Export Processing Zone, but also to firms operating in the services sector, the Mauritius Freeport, Information and Communications Technology (ICT), tourism, construction, agriculture and the offshore banking and business center. FDI is governed by the Non-Citizen (Property Restriction) Act. Investment regulations conform to the WTO's Agreement on Trade Related Investment Measures (TRIMS).

    International rankings
    Organisation SurveyRanking Heritage Foundation/The Wall Street Journal 2007 Index of Economic Freedom 34 out of 157 Reporters Without Borders Press Freedom Index (2006) 32 out of 168 Transparency International Corruption Perceptions Index 2006 42 out of 163 United Nations Development Programme Human Development Index 2006 177 65 out of

    Social risk -Social unrest


    Although severe poverty is rare in Mauritius as compared to other parts of Africa, there is a minority of very poor rural households in the country, most of which are located in rural areas. In the wake of the recent exposure to global competition, and the consequent decline in the production of sugar and textiles for export, rural poverty is on the rise across the country. Unemployment is increasing, and those who are already disadvantaged are sinking into deeper poverty. Overall, 10 per cent of Mauritians are estimated to be living in poverty, but the figure may be substantially higher.

    Mauritius a gateway of Africa


    Many Indian Companies treating Mauritius as their logistics Hub. Few shipping services are available direct to African countries Therefore they are exporting to Mauritius and then further destination to Africa But ports are not developed as India. Therefore this is logistics risk

    Competitive risk
    Many foreign companies are opening their subsidares in Mauritius for investment After that same companies are coming to India through Mauritius route Therefore maximum FDI in India is from Mauritius Competitive risk is B

    Analyzing
    Political & Legal Risk Nil Socio-Cultural Risk B Economics Risk C Competitive Risk C Logistics Risk C Since there is no high risk is any area. Country is good for investment

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