The Mauritius Government has implemented a scheme aimed at accelerating the modernization, expansion, and diversification of existing manufacturing enterprises. This initiative encourages these enterprises to invest in modern equipment, computerization, and pollution control technologies, thereby enhancing their operational efficiency and environmental sustainability.

Qualifying Activities 

Under the scheme, qualifying activities include:

  • Investment in Productive Machinery and Equipment: Enterprises are incentivized to invest in modern machinery and equipment that enhance productivity and efficiency. This may include automation equipment, advanced manufacturing processes, and computer applications such as Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) systems.
  • Introduction of Pollution Control Technology: Emphasis is placed on investments in anti-pollution and environmental protection technologies. This includes the installation of equipment and systems designed to mitigate environmental impact and comply with regulatory standards.

To qualify for incentives, investments in these technologies must be made within two years from the date of the issuance of the certificate under the scheme, ensuring timely implementation of modernization and environmental initiatives.


Participating enterprises can benefit from a range of incentives to support their investment in modernization and environmental improvements:

  • Customs Duty Exemption: No customs duty is levied on imported production equipment, machinery, and related materials essential for modernization and expansion projects. This reduces upfront costs and facilitates access to state-of-the-art technologies.
  • Income Tax Credit: Enterprises investing at least MUR 10 million in new plant and machinery within the specified timeframe can benefit from an income tax credit of 10%. This credit is spread over three years, providing financial relief and encouraging substantial capital expenditure.
  • Enhanced Capital Allowances: In addition to existing capital allowances (which amount to 125% of capital expenditures), enterprises investing in qualifying activities enjoy enhanced benefits. This includes accelerated depreciation allowances that incentivize ongoing investment in modernization and expansion.
  • Special Incentives for Anti-Pollution Technologies: Enterprises investing in anti-pollution machinery or plant benefit from an initial allowance of 80%, instead of the standard 50%. This incentivizes proactive measures to reduce environmental impact and ensures compliance with stringent environmental regulations.

Economic and Environmental Impact

The scheme not only supports the growth and competitiveness of Mauritius’ manufacturing sector but also promotes sustainable development practices. By encouraging the adoption of modern technologies and pollution control measures, it enhances operational efficiency, reduces production costs, and improves environmental stewardship.

Moreover, the scheme fosters innovation and technological advancement within the manufacturing sector, positioning Mauritian enterprises as leaders in niche markets. It also creates opportunities for job creation, skills development, and the attraction of foreign investment, thereby contributing to broader economic growth and resilience.


The Modernisation and Expansion Scheme for manufacturing enterprises in Mauritius represents a strategic initiative to foster economic dynamism, environmental sustainability, and industrial resilience. By offering targeted incentives for investment in modern equipment and pollution control technologies, Mauritius aims to build a robust manufacturing ecosystem capable of competing globally while safeguarding the environment for future generations. Through these initiatives, Mauritius continues to demonstrate its commitment to sustainable development and inclusive growth, ensuring a prosperous future for its industries and communities alike.