Budget 2026–2027: Start-up Revolution, SMEs and Special Economic Zone

At the heart of the Government’s economic strategy, as enunciated in the 2026–2027 Budget is the launch of a Mauritius Start-up Revolution, designed to democratise the economy, open new opportunities for innovators, and empower them to transform ideas into jobs and sustainable economic prospects.

Mauritius Start-up Revolution

The Government will bring about a Mauritius Start-up Revolution through the creation of a robust ecosystem comprising: a dedicated Start-Up Act; a hub at the upcoming Special Economic Zone (SEZ) at Côte d’Or; a high-level public–private Start-Up Council to oversee implementation and coordination; an accelerator scheme under the Economic Development Board (EDB); a digital patent management system; a dedicated start-up labour framework drawing on international best practices; and an income tax holiday of 10 years for start-ups, applicable from the commencement of operations.

In addition, the Government will award an Innovation Scholarship of up to Rs 500,000 in seed funding to ten university students, enabling them to transform their ideas into commercially viable projects through the National Research and Innovation Institute.

SMEs

This Start-up Revolution will further consolidate the important role played by SMEs in the national economy. As most start-ups would qualify as SMEs, they will also benefit from existing as well as new policy measures designed to support the sector. These include: an SME Bill to establish a more conducive business environment; an extension of customs duty exemptions on eligible utility vehicles for registered SMEs operating in transformative sectors; and a single digital platform, to be developed by SME Mauritius, providing access to information on schemes, grants, tax incentives and financing facilities.

Expansion and Modernisation of Economic Space: Special Economic Zone

To build a future-ready economy, Mauritius must further diversify, with the development of robust new industries offering wider investment opportunities for both local and foreign entrepreneurs.

A new high-tech Special Economic Zone (SEZ) is being established on 83 arpents of land at Côte d’Or. Infrastructure works for the SEZ are currently being completed, alongside the implementation of a dedicated SEZ incentive scheme.

The SEZ is expected to attract significant high-impact investment in artificial intelligence, digital industries and advanced manufacturing over the next five years, providing a strong boost to the export sector. In this regard, Government is setting an ambitious target of increasing exports of goods from USD 1.5 billion to USD 3 billion over the next five years.

Furthermore, in a bid to re-engineer traditional sectors and enhance their competitiveness, the Government is actively working on an innovative industrial policy This will address the challenges faced by the manufacturing sector. An Industry Bill will be introduced to provide for a modern legislative architecture to rebuild the country's industrial and export base, and reposition Mauritius as a globally competitive manufacturing hub and export platform.

22 June 2026

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