About the CBI
 

September 2005

Background Note: Mauritius

Flag of Mauritius is four equal horizontal bands of red - top - blue, yellow,
and green.

PROFILE

OFFICIAL NAME:
Republic of Mauritius

Geography
Area: 1,865 sq. km. (720 sq. mi.), about the size of Rhode Island; 500 miles
east of Madagascar, in the Indian Ocean.
Dependencies: Rodrigues Island, the Agalega Islands and Cargados Carajos
Shoals; Mauritius also claims sovereignty over the Chagos Archipelago, part
of the British Indian Ocean Territory, where U.S. Naval Support Facility at
Diego Garcia is located.
Cities: Capital--Port Louis (pop. 146,319). Other cities--Beau Bassin and
Rose Hill (105,377), Vacoas-Phoenix (101,789), Curepipe (82,756), Quatre
Bornes (77,145).
Terrain: Volcanic island surrounded by coral reefs. A central plateau is
rimmed by mountains.
Climate: Tropical; cyclone season mid-December-April.

People
Nationality: Noun and adjective--Mauritian(s).
Population (2003): 1,228,965, including Rodrigues, Agalega, and St. Brandon.
Avg. annual population growth (2001): 1%. Density--602/sq. km.
Ethnic groups: Indo-Mauritians 68%, Creoles 27%, Sino-Mauritians 3%,
Franco-Mauritians 2%.
Religions: Hindu, Roman Catholic, Muslim.
Languages: Creole (common), French, English (official), Hindi, Urdu, Hakka,
Bhojpuri.
Education: Years compulsory--6 (primary school). Attendance (primary school)
--virtually universal. Literacy--adult population 85%; school population 90%.
Health (2001): Infant mortality rate--13.2/1000. Life expectancy--male 68.6
yrs., female 75.5 yrs.
Work force (2003, 549,500): Manufacturing--27%; trade and tourism--19.6%;
government services--11%; agriculture and fishing--9.4%; other--33%.

Government
Type: Republic.
Independence: March 12, 1968 (became a republic in 1992).
Constitution: March 12, 1968.
Branches: Executive--president (head of state), prime minister (head of
government), Council of Ministers. Legislative--Unicameral National Assembly.
Judicial--Supreme Court.
Administrative subdivisions: 10.
Major political parties: MSM-MMM Alliance (Militant Socialist Movement and
Mauritian Militant Movement) and the Social Alliance (made up of several
parties, including the Mauritian Labor Party).
Suffrage: Universal over 18.
Defense (2000): 1.7% of GDP.

Economy
GDP (2004) $6 billion.
Real growth rate (2004): 4.6%.
Per capita income (2004): $4,900.
Avg. inflation rate (2004): 4.8%.
Natural resources: None.
Agriculture (6.2% of GDP): Products--sugar, sugar derivatives, tea, tobacco,
vegetables, fruits, flowers and fishing.
Manufacturing, including export processing zone (21.5% of GDP):
Types--labor-intensive goods for export, including textiles and clothing,
watches and clocks, jewelry, optical goods, toys and games, and cut flowers.
Tourism sector (5.8% of GDP): Main countries of origin--France, including
nearby French island Reunion, South Africa, and west European countries.
Financial services: 10% of GDP.
Trade (2003): Exports--$1.9 billion: textiles and clothing, sugar, canned
tuna, watches and clocks, jewelry, optical goods, toys and games, and
flowers. Major markets--Europe and the U.S. Imports--$2.3 billion: meat,
dairy products, fish, wheat, rice, wheat flour, vegetable oil, petroleum
products, iron and steel, cement, fertilizers, machinery and transport
equipment, and textile industry raw materials. Major suppliers--South Africa,
France, China, India, U.K., Japan, Australia, and Germany.
Fiscal year: July 1-June 30.

HISTORY
While Arab and Malay sailors knew of Mauritius as early as the 10th century
AD and Portuguese sailors first visited in the 16th century, the island was
first colonized in 1638 by the Dutch. Mauritius was populated over the next
few centuries by waves of traders, planters and their slaves, indentured
laborers, merchants, and artisans. The island was named in honor of Prince
Maurice of Nassau by the Dutch, who abandoned the colony in 1710.

The French claimed Mauritius in 1715 and renamed it Ile de France. It became
a prosperous colony under the French East India Company. The French
Government took control in 1767, and the island served as a naval and
privateer base during the Napoleonic wars. In 1810, Mauritius was captured by
the British, whose possession of the island was confirmed 4 years later by
the Treaty of Paris. French institutions, including the Napoleonic code of
law, were maintained. The French language is still used more widely than
English.

Mauritian Creoles trace their origins to the plantation owners and slaves who
were brought to work the sugar fields. Indo-Mauritians are descended from
Indian immigrants who arrived in the 19th century to work as indentured
laborers after slavery was abolished in 1835. Included in the Indo-Mauritian
community are Muslims (about 17% of the population) from the Indian
subcontinent.

Franco-Mauritians control nearly all of the large sugar estates and is active
in business and banking. As the Indian population became numerically dominant
and the voting franchise was extended, political power shifted from the
Franco-Mauritians and their Creole allies to the Hindus.

Elections in 1947 for the newly created Legislative Assembly marked
Mauritius' first steps toward self-rule. An independence campaign gained
momentum after 1961, when the British agreed to permit additional
self-government and eventual independence. A coalition composed of the
Mauritian Labor Party (MLP), the Muslim Committee of Action (CAM), and the
Independent Forward Bloc (IFB)--a traditionalist Hindu party--won a majority
in the 1967 Legislative Assembly election, despite opposition from
Franco-Mauritian and Creole supporters of Gaetan Duval's Mauritian Social
Democratic Party (PMSD). The contest was interpreted locally as a referendum
on independence. Sir Seewoosagur Ramgoolam, MLP leader and chief minister in
the colonial government, became the first prime minister at independence, on
March 12, 1968. This event was preceded by a period of communal strife,
brought under control with assistance from British troops.

GOVERNMENT AND POLITICAL CONDITIONS
Mauritian politics are vibrant and characterized by coalition and alliance
building. All parties are centrist and reflect a national consensus that
supports democratic politics and a relatively open economy with a strong
private sector. Parliamentary elections were held July 3, 2005.

Alone or in coalition, the Mauritian Labor Party (MLP) ruled from 1947
through 1982 and returned to power in 1995. The Mauritian Militant Movement/
Mauritian Socialist Party (MMM/PSM) alliance won the 1982 election. In 1983,
defectors from the MMM joined with the PSM to form the Militant Socialist
Movement (MSM) and won a working majority. In July 1990, the MSM realigned
with the MMM, and in September 1991, national elections won 59 of the 62
directly elected seats in parliament. In December 1995, the MLP returned to
power, this time in coalition with the MMM. Labor's Navin Chandra Ramgoolam,
son of the country's first prime minister, became prime minister himself.
Ramgoolam dismissed his MMM coalition partners in mid-1997, leaving Labor in
power except for several small parties allied with it. Elections in September
2000 saw the re-emergence of the MSM-MMM as a winning alliance, as the
coalition garnered 51.7% of the vote, and Sir Anerood Jugnauth once again
became the prime minister with the caveat that mid-term, the leader of the
MMM party would take over as prime minister. In September 2003, in keeping
with the campaign promise which forged the coalition, Jugnauth stepped down
from office and deputy prime minister Paul Raymond Berenger became prime
minister. One month later, Sir Anerood Jugnauth was sworn in as President of
the Republic. Berenger became the first Catholic, Franco-Mauritian to head
the government. The move created an historic precedent of having a non-Hindu,
non-majority member head the national government. The 2005 parliamentary
elections returned Navin Chandra Ramgoolam to office as prime minister.

Mauritius became a republic on March 12, 1992. The most immediate result was
that a Mauritian-born president became head of state, replacing Queen
Elizabeth II. Under the amended constitution, political power remained with
parliament. The Council of Ministers (cabinet), responsible for the direction
and control of the government, consists of the prime minister (head of
government), the leader of the majority party in the legislature, and about
20 ministries.

The unicameral National Assembly has up to 70 deputies. Sixty-two are elected
by universal suffrage, and as many as eight "best losers" are chosen from the
runners-up by the Electoral Supervisory Commission using a formula designed
to give at least minimal representation to all ethnic communities and
under-represented parties. Elections are scheduled at least every 5 years.

Mauritian law is an amalgam of French and British legal traditions. The
Supreme Court--a chief justice and five other judges--is the highest judicial
authority. There is an additional right of appeal to the Queen's Privy
Council. Local government has nine administrative divisions, with municipal
and town councils in urban areas and district and village councils in rural
areas. The island of Rodrigues forms the country's 10th administrative
division.

Principal Government Officials
President--Sir Anerood Jugnauth
Vice President--Raouf Bundhun
Prime Minister--Navin Chandra Ramgoolam
Ambassador to the United States--vacant (Martine S.C. Young Kim Fat, Charge
d'Affairs)
Ambassador to the United Nations--Jugdish Koonjul

Mauritius maintains an embassy at 4301 Connecticut Avenue NW, Washington, DC
20008, (tel. 202-244-1491)

ECONOMY
Mauritius has one of the strongest economies in Africa; although final
figures are not yet available, 2004 GDP at market prices is estimated at $6
billion and per capita income at $4,900. Over the past two decades, real
output growth averaged just below 6% per year, leading to a more than
doubling of per capita income and a marked improvement in social indicators.
Economic growth was first driven by sugar, then textiles and tourism, and
more recently by financial services (particularly offshore companies). The
information and communications technology (ICT) sector is now emerging as the
fifth pillar of the economy, following massive investment by government in
the last three years in related infrastructure (the newly built Ebene Cyber
City is one example) and training.

However, the economy is now facing some serious challenges, including the
decline in the rate of economic growth, increasing unemployment, an
increasing public sector deficit, and an increasing domestic debt. In 2003,
GDP grew by 4.3%, up from 1.8% in 2002 when sugar production was diminished
by a hurricane. Although final figures are not yet available, the growth rate
for 2004 is estimated at 4.6%. However, this is still below the average
growth rate of the past two decades.

Mauritius stands today at the crossroads of its future development. The main
engines of growth in the Mauritian economy, namely the sugar and textile
industries, are faced with the erosion of preferential trade arrangements
stemming from the proposed reforms of the European Union sugar regime, the
phasing out of the Multi Fiber Agreement, and the increasing trend towards
the globalization of world trade. The prospects of intensified global
competition from low-wage countries (particularly China and India) and
limited future opportunities for preferential trade arrangements represent
serious constraints on future growth.

Realizing the need to diversify the economy, Mauritius has embarked on an
ambitious development strategy to find new drivers for economic growth. The
government is putting emphasis on the development of the ICT sector and the
promotion of Mauritius as a seafood hub in the region, using existing
facilities at the Freeport (free trade zones at the port and airport).
Measures are also being taken to modernize and restructure the sugar and
textile sectors through better technology and greater capitalization.

The business climate is friendly yet extremely competitive. Mauritius has a
long tradition of private entrepreneurship, which has led to a strong and
dynamic private sector. Firms entering the market will find a well-developed
legal and commercial infrastructure. With regard to telecommunications,
Mauritius has a well-developed digital infrastructure and offers
state-of-the-art telecommunications facilities including international leased
lines and high speed Internet access. Telecommunications services were
liberalized in January 2003. The government policy is to act as a facilitator
to business, leaving production to the private sector. However, it still
controls key utility services directly or through parastatals, including
electricity, water, waste water, postal services, and broadcasting. The State
Trading Corporation controls imports of rice, flour, petroleum products, and
cement.

FOREIGN RELATIONS
Mauritius has strong and friendly relations with the West as well as with
India and the countries of southern and eastern Africa. It is a member of the
African Union (AU), World Trade Organization (WTO), the Commonwealth, La
Francophonie, the Southern Africa Development Community (SADC), the Indian
Ocean Commission, Community of Eastern and South African States (COMESA), and
the recently formed Indian Ocean Rim Association. In 2004, then-Prime
Minister Berenger became chairman of SADC for a one-year term.

Trade, commitment to democracy, colonial and cultural ties, and the country's
small size are driving forces behind Mauritian foreign policy. The country's
political heritage and dependence on Western markets have led to close ties
with the European Union and its member states, particularly the United
Kingdom and France, which exercises sovereignty over neighboring Reunion.

Considered part of Africa geographically, Mauritius has friendly relations
with other African states in the region, particularly South Africa, by far
its largest continental trading partner. Mauritian investors are gradually
entering African markets, notably Madagascar and Mozambique. Mauritius
coordinates much of its foreign policy with the Southern Africa Development
Community and the African Union.

Relations with India are strong for both historical and commercial reasons.
Foreign embassies in Mauritius include Australia, the United Kingdom, China,
Egypt, France, India, Madagascar, Pakistan, Russia, South Africa, and the
United States.

DEFENSE
Mauritius does not have a standing army. All military, police, and security
functions are carried out by 10,000 active-duty personnel under the command
of the Commissioner of Police. The 8,000-member National Police is
responsible for domestic law enforcement. The 1,400-member Special Mobile
Force (SMF) and the 688-member National Coast Guard are the only two
paramilitary units in Mauritius. Both units are composed of police officers
on lengthy rotations to those services.

The SMF is organized as a ground infantry unit and engages extensively in
civic works projects. The Coast Guard has four patrol craft for
search-and-rescue missions and surveillance of territorial waters. A
100-member police helicopter squadron assists in search-and-rescue
operations. There also is a special supporting unit of 270 members trained in
riot control.

Military advisers from the United Kingdom and India work with the SMF, the
Coast Guard, and the Police Helicopter Unit, and Mauritian police officers
are trained in the United Kingdom, India, and France. The United States
provides training to Mauritian security officers in such fields as
counter-terrorism methods, seamanship, and maritime law enforcement.

U.S.-MAURITIAN RELATIONS
Official U.S. representation in Mauritius dates from the end of the 18th
century. An American consulate established in 1794 closed in 1911. It was
reopened in 1967 and elevated to embassy status upon the country's
independence in 1968. Since 1970, the mission has been directed by a resident
U.S. ambassador.

Relations between the United States and Mauritius are cordial and largely
revolve around trade. The United States is Mauritius' third-largest market
but ranks 12th in terms of exports to Mauritius. Principal imports from the
U.S. include aircraft parts (for Air Mauritius), automatic data processing
machines, diamonds, jewelry, radio/TV transmission apparatus,
telecommunications equipment, agricultural/construction/industrial machinery
and equipment, casino slot machines, outboard motors, books and
encyclopedias, and industrial chemicals.

Mauritian exports to the U.S. include apparel, sugar, non-industrial
diamonds, jewelry articles, live animals, sunglasses, and cut flowers. The
United States is the number one market for Mauritian garments. It emerged as
the single largest market for shirts and trousers in 2002 and 2003. In
November 2004 the U.S. Congress exempted Mauritius for one year from the
third country fabric provision under the African Growth and Opportunity Act
(AGOA). This exemption is expected to give a further boost to Mauritian
export of apparel to the United States.

More than 200 U.S. companies are represented in Mauritius. About 35 have
offices in Mauritius, serving the domestic and/or the regional market, mainly
in the information technology (IT), textile, fast food, express courier, and
financial services sectors. The largest U.S. subsidiaries are Caltex Oil
Mauritius and Esso Mauritius. U.S. brands are sold widely. Several U.S.
franchises, notably Kentucky Fried Chicken, Pizza Hut, McDonald's, and Toys R
Us have opened in recent years.

The United States funds a small military assistance program. The embassy also
manages special self-help funds for community groups and nongovernmental
organizations and a democracy and human rights fund.

Principal U.S. Embassy Officials
Ambassador--vacant
Charge d'Affaires--Stephen Schwartz
Management Officer--Judith Semilota
Public Affairs Officer--Marjorie Harrison
Political Officer--Margaret Hsiang
Economic-Commercial and Consular Officer--Melissa Brown
Regional Security Officer--David Walsh

The address of the U.S. Embassy in Mauritius is Rogers House, Fourth Floor,
John F. Kennedy Street, Port Louis (tel: 230-202-4400; fax: 230-208-9534;
E-mail: usembass@intnet.mu).