Industrial Development: UNIDO launches groundwork for new Strategic Plan for Mauritius

The United Nations Industrial Development Organization (UNIDO) has started preparatory work for the elaboration of a new Strategic Plan for Mauritius’ industrial sector. On that score, a team of UNIDO experts is currently in Mauritius for consultations with key stakeholders.

The experts met, on 17 August 2026, with the Minister of Industry, SMEs and Cooperatives, Mr Aadil Ameer Meea, for a better understanding of Government’s vision for the industrial sector, as well as the realities, challenges and ambitions shaping Mauritius’ industrial development.

Discussions focused on the broad directions envisaged for the sector in the coming years and on reforms being prepared by the Ministry, including the forthcoming Industry Bill and SME Bill.

During the meeting, Minister Ameer Meea outlined the economic transformation of Mauritius’ economy shifting from a largely dependent economy on sugar cane to a diversified development strategy encompassing textiles, manufacturing, tourism and financial services. He, however, highlighted the gradual decline in the contribution of the manufacturing sector to Gross Domestic Product (GDP), from around 20 percent in the past to approximately 13 percent today.

The Minister stressed the need to reverse this trend in order to strengthen the resilience of the economy and reduce its dependence on imports. The successive crises, including the COVID-19 pandemic and international geopolitical tensions, have highlighted the vulnerability of a small island economy that relies heavily on external supplies.

In this context, strengthening local production and promoting import substitution are expected to feature prominently in the country’s future industrial strategy.

Repositioning Mauritius as a manufacturing hub

Discussions with UNIDO resource persons also focused on Government’s ambition to reposition Mauritius as a manufacturing hub and a leading industrial player in the region, building on the country’s nearly five decades of experience in textiles and manufacturing.

The forthcoming Industry Bill will constitute an important component of the new industrial framework. Among the measures discussed was the proposed establishment of an Industry and Export Development Agency, which would provide greater focus on manufacturing development, exports and investment promotion in the industrial sector.

Government also intends to set clear targets regarding the sector’s contribution to GDP, exports and import substitution. One of the ambitions discussed is to progressively restore the manufacturing sector’s contribution to around 20 percent of GDP.

Focus on innovation and new industrial activities

The future transformation of the industrial sector will also take into account changing production costs and competitiveness requirements. Discussions therefore covered automation, Industry 4.0, innovation and the development of higher-value-added activities.

Potential areas for diversification comprise technology, medical devices, engineering and component manufacturing, electronics, as well as the circular economy and the transformation of waste into resources for new industrial activities.

Mauritius’ strategic geographical position and preferential access to several markets, particularly in Africa, were also highlighted as advantages that could be further leveraged to attract productive investment and boost exports.

The discussions further focused on the need to strengthen linkages between industry, research institutions, universities, innovation, new technologies and the start-up ecosystem, while improving coordination among the relevant Ministries and institutions.

Alongside the Industry Bill, Minister Ameer Meea indicated that a new SME Bill is under preparation with a view to adapting the regulatory framework governing small and medium enterprises to current economic realities and the challenges ahead.

The UNIDO experts will pursue their mission with consultations with various stakeholders in the industrial sector. The fieldwork and consultations will contribute to the preparation of the new Strategic Plan, which will set out the priorities and strategic directions for the development of Mauritius’ industrial sector in the years ahead.

18 August 2026

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Topics: Industry