[MAURITIUS] 2026-2027 Budget: Deficit Cut to 3.7% of GDP, a "Future-Ready" Plan Built on AI and Startups

Mauritius cuts its budget deficit to 3.7% of GDP for 2026-27 (vs. 6% previously) and launches an ambitious programme: a Start-Up Act (10-year tax exemption), AI-for-All (25,000 Mauritians trained), and a high-tech SEZ at Côte d'Or.

Maurice — Business.OI
Photo : Pavel Danilyuk / Pexels

Mauritius' 2026-2027 budget marks a fiscal turning point: the deficit is projected at 3.7% of GDP, down from 6.0% the previous year. Alongside this consolidation, the island is embarking on an ambitious technology shift—a Start-Up Act, mass AI training, and a high-tech special economic zone in Côte d'Or—to reposition itself globally.

A Public Finance Turnaround

Revenue is projected at MUR 235.5 billion against expenditure of MUR 266.7 billion, bringing public debt to 85.5% of GDP by June 2027—on a downward trajectory after years of expansion. Unemployment stands at 5.7%, with inflation returning to 3.7%. Real GDP growth was 3.2% in 2025, with the 2026 forecast maintained at 3.0% despite global headwinds (ECB rates, trade tensions).

Start-Up Act: A Ten-Year Tax Holiday

The standout measure for entrepreneurs: the new startup legislative framework offers a ten-year income tax exemption from the date of operational commencement. An EDB-operated startup accelerator completes the package, alongside simplified licensing procedures. The goal: making Mauritius the destination of choice for founders across the Indian Ocean region and Africa.

AI-for-All and the Côte d'Or SEZ

The « AI-for-All » programme targets training 25,000 Mauritians in artificial intelligence via a national learning platform. Tax credits are introduced for AI solution investments and patent filings.

The Côte d'Or Special Economic Zone allows 100% foreign ownership with preferential electricity tariffs, targeting AI and digital companies. The « 25by35 » project also aims to increase domestic food production by 2035, backed by 220 MW of additional solar capacity.

Open Banking and an Enhanced Golden Visa

An Open Banking framework opens the door to fintech innovation, building on the National Fintech Strategy 2026-2030. The Golden Visa is enhanced with a pathway to permanent residence—targeting entrepreneurs and diaspora investors.

Why It Matters

Mauritius is consolidating its position as the Indian Ocean's financial and technology hub. This budget sends a clear signal to investors: fiscal discipline restored, combined with a bold digital ambition. For entrepreneurs in Réunion, Madagascar or the Comoros, the Mauritian Start-Up Act represents a concrete opportunity for regional structuring. Source: EDB Mauritius, KickOff Mauritius, PwC Mauritius, June-July 2026.

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