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# [MAURITIUS] AfDB 2026 Country Report: Mauritius Must Scale Up Development Financing to Reach High-Income Status
- URL: https://businessoi.media/en/maurice-rapport-bad-2026-maurice-doit-mobiliser-des-financements-a-grande-echelle-pour-atteindre-le-statut-de-pays-a-revenu-eleve-en/
- Published: 2026-08-22T13:37:58.000Z
- Updated: 2026-08-22T13:37:58.000Z
- Description: The AfDB projects 3% growth for Mauritius in 2026, with a budget deficit of 6% of GDP. The bank calls for scaling up development financing to achieve the island's high-income ambition.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Économie, Finances publiques, Investissement, Clôture, #en

The African Development Bank (AfDB) has published its annual country report on Mauritius. The conclusion is unequivocal: the path to high-income status is achievable — but only if the island mobilises development financing far beyond what current budget resources can provide alone.

## A Slowdown in Growth

The report projects GDP growth of **3%** in 2026, a deceleration compared to recent years, before recovering to 3.8% in 2027\. Inflation is expected to peak at 5.7% this year, easing to 3.9% in 2027\. The budget deficit remains a concern at **6% of GDP in 2026**, with a target of returning to 3.7% next year. Public debt is projected to fall below 80% of GDP by 2029 — an achievable horizon, provided structural reforms are delivered.

## Four Structural Bottlenecks

The AfDB identifies four key obstacles to Mauritius's economic transformation:

- Labour market rigidities and skills mismatches against the demands of the digital economy;
- Population ageing, which weighs on productivity and public finances;
- Infrastructure deficits in water, energy and port logistics;
- Technology gaps slowing the adoption of Industry 4.0.

On the tourism front, 2025 was a record year with **1.44 million arrivals**. The key challenge now is diversifying the economy away from over-reliance on a single sector.

## The AfDB's Prescription

To reach high-income status, the bank recommends action on six fronts: scaling up development financing, improving domestic revenue collection, increasing the efficiency of public spending, engaging African institutional investors and the Mauritian diaspora, accelerating digitalisation, and developing emerging economic pillars — the ocean economy, the circular economy, and the creative economy.

> "Mauritius must mobilise development financing at scale to achieve its high-income ambition."

*— AfDB, Mauritius Country Focus Report 2026, August 2026*

## Why It Matters

This report lands in a context of real fiscal pressure, following the Finance Bill 2026 which introduced new taxes and a 35% top marginal rate. The AfDB is essentially providing the roadmap that the Mauritian government must follow to avoid missing its window for high-income status. For investors, the signals are clear: the potential is real, but the credibility of reforms will be decisive. Key items to watch: labour market reform progress and advances in port and energy infrastructure over the next budget cycle.

*Source: African Development Bank, Mauritius Country Focus Report 2026, 13 August 2026.*