Mauritius Considered the Most Liberal Economy in Sub-Saharan Africa According to the Economic Freedom Index
Mauritius obtained 1st place for the Sub-Saharan African Region in the 2019 Index of Economic Freedom. The scale evaluates a country according to 12 categories, these being these being Property Rights, Government Integrity, Judicial Effectiveness, Tax Burden, Government Spending, Fiscal Health, Business Freedom, Labour Freedom, Monetary Freedom, Trade Freedom, Investment Freedom and Financial freedom. The Freedom Index measures how freely a country’s government allows for the movement of capital and goods within the country. Additionally, it assesses the extent to which a government limits liberty and uses coercion beyond the degree necessary to preserve liberty itself (Economic Freedom Index 2019).
Mauritius obtained 25th place globally on the 2019 Index and is well above the world average. In 2019 the country had a low unemployment rate of 7.1%, a growing economy at an average of 3.9% per year and high annual foreign direct investment levels sitting at USD 272.7 million (inflow). Their strong economic position and persona as a business – friendly country is a result of favourable economic policies and strategic banking practices. The government is considered transparent and have enforced a sound legal framework that protects private property and encourages private sector growth through lower than average corporate tax rates and flexible labour policies. The score Mauritius achieved on this index is yet another indication of the islands thriving economy and rapid development, solidifying their position as the strategic link between Africa and the rest of the world. This positive trend is likely to continue in 2020.
Download the Mauritian Economic Freedom Report
Visit the Economic Freedom Index Website