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Foreign capital flows into Mauritius remain steady, though growth is slowing. Gross direct investment flows reached Rs 15.6 billion in the first half of 2025, down just 2% from the same period last year. The figures, released by the Bank of Mauritius, reveal an economy still heavily sustained by property-linked investments. Real estate alone captured 67% of all foreign capital flowing into the country.
Real estate activities pulled in Rs 10.5 billion during the first six months of 2025. The sector's dominance remains unchallenged. Investors continue to favour government-backed property schemes, like the Integrated Resort Scheme, Real Estate Scheme, Property Development Scheme, and Smart City Scheme.
These special programmes attracted Rs8.5 billion, slightly up from Rs 8.4 billion in 2024. The numbers suggest foreign buyers still see Mauritius as an attractive destination for residency-linked property investments.
Beyond real estate, two sectors showed notable activity. Electricity and renewable energy drew Rs 843 million. Information and communication attracted Rs 779 million. Both represent diversification opportunities for an economy seeking to reduce its property dependence.
The accommodation sector, however, collapsed. Investment plunged from Rs1.1 billion to just Rs 14 million. The dramatic fall signals challenges in the tourism and hospitality space.
France Leads Foreign Capital Sources
European investors remain the primary source of capital. France topped the list with Rs 5.7 billion in investments during the period, up from Rs5.1 billion in 2024. French capital has consistently targeted Mauritian real estate, particularly high-end residential schemes.
South Africa contributed Rs 1.7 billion, though this marked a decline from Rs 2.0 billion previously. The United Kingdom nearly doubled its investment to Rs 912 million, up from Rs 466 million. British investors appear to be discovering - or rediscovering - Mauritius as an investment destination.
Switzerland invested Rs440 million, down sharply from Rs 1.2 billion in 2024. The drop suggests Swiss investors may be repositioning their portfolios or facing regulatory changes back home.
Developed economies supplied Rs 9.9 billion, or 63% of total inflows. The European Union alone accounted for Rs 7.4 billion. Developing economies contributed Rs3.0 billion, with Africa providing Rs 2.1 billion of that total.
Outward investment from Mauritius contracted significantly. Mauritian companies and individuals invested Rs 755 million abroad, down 39% from Rs 1.2 billion in 2024. The pullback suggests local investors are either more cautious about regional opportunities or focusing capital domestically.
African destinations absorbed Rs 256 million of outward investment. The United Kingdom received Rs 98 million. Sectors targeted by Mauritian investors included real estate (Rs 335 million) and hospitality (Rs 179 million).
Balancing Growth and Diversification
Mauritius must balance its successful real estate schemes with policies that drive investment into manufacturing, technology, and renewable energy. The first half of 2025 shows modest progress, but the journey toward true economic diversification continues.
Photo illustration: One and Only Private Homes Le Saint Géran, Villa-Vie
