Mauritius is a small island economy in the Indian Ocean. It is classified as Africa’s most liberal economy and among the most competitive in Sub-Saharan Africa.
Despite its inherent vulnerability (external shocks for climate adversities and financial crisis) as a Small Island Developing State (SIDS), Mauritius has developed from a low-income, agriculturally based economy to an upper middle-income diversified economy with growing industrial, financial, and tourist sectors.
While already complying with the EU minimum standards of good governance in tax matters on transparency and exchange of information, progress remains to be made to fully address the issue of fair tax competition.
The current MIP which runs from 2021-2027 is based on a joint analysis of common strategic objectives using a Team Europe approach with France - the only Member State active in Mauritius. Two priority areas have been agreed upon as an output of this process – Environment Protection and Climate Change adaptation and resilience, and Good Governance.
As France approves resources on an annual basis, joint programmes need to be agreed upon each year. Our programmes under the first priority area - Environment Protection and Climate Change adaptation and resilience – are aimed at three sectors. Sector 1 concerns ecological transition and green recovery focusing on improving the share of renewable energy to 60% by 2030. Sector 2 is concerned with integrated management of ecosystems – the so-called ‘Ridge to reef approach’. Sector 3 aims to support the transition to sustainable agricultural systems.
The second priority area - Good Governance – addresses the improvement of the democratic process and public accountability, policy coherence and financial governance and human rights and gender equality.
Support measures and Team Europe initiatives
The Team Europe approach is supported by France; the Reunion Region, the EIB and the EU, and focuses mainly on environmental issues, though other priority areas may be addressed as well. An indicative contribution of €5 million is envisaged for this initiative.
Support measures include support for CSOs, with potentially 11% of funding provided for this action.
The funding for the MIP from 2021-2024 totals €5 million. Priority area 1 will attract €3 million (60% of the total); priority area 2 €0.5 million (10% of the total), while support measures will attract 1.5 million (30% of the total).