Fdi in Mauritius: Ict Sector

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A Report and Proposition of Strategies to Enhance Growth of the ICT Sector Through FDI in Mauritius

Syed Farhan Ahmed[1], Shaun J Rodrigues[2] and Harrish C Bheemul[3]

Abstract

Mauritius has progressed significantly from a low-income to a middle-income diversified economy with growing industrial, financial and tourist sectors. However, one of the most significant contributors to Mauritius booming economy is the development of the services sector and the focus of Foreign Direct Investment (FDI) in the Information and Communication Technology (ICT) sector, which includes manufacturing activities, telecommunication, services, call centers, software development, multimedia, and disaster recovery. Over the last ten years, ICT has played a pivotal role in enhancing foreign investment both nationally and internationally. The shares of ICT industry in world trade and investment has also boosted, hence accountable for a larger share of employment and production in many economies across the globe. Drastic change in the ICT sector has contributed to a growing economy. This sector accounted to just 25% of the world FDI stock in early 1970’s moved on to slightly less than 50% in 2003 but recently raised to 67%. Currently, ICT sectors such as BPO and telecommunication are burgeoning. FDI in ICT sector also provide technological growth, managerial knowledge and enhancement of skills. Mauritius, from a global position of 75th and second in Africa in 2000-2001, has progressed to 47th and first position globally and Arica in 2010-2011. (47th and first positions, globally and in Africa respectively in 2010-2011 OR 47th position globally and first in Africa in 2010-2011). The ICT sector is emerging as the 4th pillar of Mauritius Economy and as Mauritius is experiencing unprecedented revolution in strategies and operation model.

This paper presents an empirical study of FDI in the ICT sector of Mauritius that has performed exceptionally well in attracting FDI...
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