The Local Manufacturing Enterprise Scheme in Mauritius is specifically tailored to bolster the economic, industrial, and technological development of the country by supporting local manufacturing activities that contribute significantly to these objectives. This initiative aims to strengthen the local manufacturing sector, promote technological advancement, and enhance overall economic resilience.

Qualifying Activities

The scheme targets local manufacturing enterprises engaged in activities that directly contribute to the economic, industrial, and technological advancement of Mauritius. Qualifying activities typically include:

  • Local Market Manufacturing: Companies involved in manufacturing products primarily for the local market, thereby reducing import dependency and fostering economic self-sufficiency.
  • Technological Enhancement: Businesses that introduce or utilize advanced manufacturing technologies, processes, or techniques that enhance productivity, efficiency, and competitiveness within the local industry.
  • Industrial Development: Enterprises contributing to the growth and diversification of Mauritius’ industrial base through innovative manufacturing practices and value-added production.

Incentives

Participating companies under the Local Manufacturing Enterprise Scheme benefit from a range of incentives designed to support their growth and sustainability:

  • Corporate Tax Rate: A reduced corporate tax rate of 15% is applicable to qualifying manufacturing enterprises, providing a competitive advantage and encouraging reinvestment in technological upgrades and expansion.
  • Tax Exemption on Dividends: Dividends distributed to shareholders are exempt from taxation, enhancing investor returns and incentivizing long-term investment in local manufacturing ventures.
  • Import Duty Waivers: Certain imported raw materials, machinery, and equipment essential for manufacturing processes may be eligible for waivers on customs duties, lowering operational costs and promoting capital investment in modern technologies.
  • Import Duty Waivers: Certain imported raw materials, machinery, and equipment essential for manufacturing processes may be eligible for waivers on customs duties, lowering operational costs and promoting capital investment in modern technologies.
  • Investment Allowances: Additional tax benefits may be available for investments made in specified categories, further incentivizing capital expenditure and technological modernization.
  • Training and Development Support: Access to government-sponsored training programs and initiatives aimed at upskilling the local workforce in advanced manufacturing techniques and technologies.

Economic Impact

By supporting local manufacturing enterprises, the scheme stimulates economic growth, job creation, and skills development within Mauritius. It fosters a robust industrial ecosystem capable of competing on regional and global scales while reducing reliance on imports and enhancing export potential. Moreover, the emphasis on technological advancement improves production efficiency and product quality, positioning Mauritian manufacturers as leaders in niche markets.

Socio-Economic Development

Beyond economic benefits, the Local Manufacturing Enterprise Scheme contributes to socio-economic development by fostering sustainable industrial practices, enhancing local supply chains, and promoting inclusive growth across communities. It encourages entrepreneurship and innovation among local businesses, thereby diversifying the economy and creating opportunities for small and medium enterprises (SMEs) to thrive.

Conclusion

The Local Manufacturing Enterprise Scheme underscores Mauritius’ commitment to nurturing a vibrant manufacturing sector that serves as a cornerstone of economic resilience and development. By offering attractive incentives and supportive policies, Mauritius aims to create a conducive environment for local manufacturers to innovate, expand, and contribute meaningfully to the country’s long-term prosperity and sustainability. Through strategic investments in technology, skills, and infrastructure, Mauritius continues to strengthen its position as a dynamic hub for manufacturing excellence in the region.