Globalization has ushered in a procedure of integrating of the universe economic and fiscal systems. The turning mutuality of the planetary fiscal markets into a mega market topographic point was apparent during the Asiatic fiscal crisis of the ulterior 1890ss and the coincident downswing in stock markets across the universe over the past three old ages. Even though remote little island provinces like Mauritius and Seychelles were non connected with the beginnings of such crises, the effects crossed their boundary lines uninvited. Whether we like it or non, fiscal globalisation is a phenomenon which is quickly altering the universe economic landscape.
On the economic forepart, Mauritius has made a important attempt in its enterprise to go portion of the planetary fiscal market. The island has been transformed from a low-income agriculture-based economic system to a middle-income diversified economic system with growing in touristry, industrial, and fiscal services sectors.
In comparing with other little islands in the Indian Ocean part, Mauritius is a leader in fiscal services, with a noteworthy offshore banking sector. The seaward Bankss in Mauritius offer a broad scope of services including foreign exchange dealing, loaning, sedimentation pickings, trade finance, offshore trust and securities and fund direction.
The Mauritius Stock Exchange ( SEM ) was established in 1989 under the Stock Exchange Act of 1988. The exchange is regulated by the Financial Services Commission. A new Securities Act was passed in 2005 but has yet to be become effectual. the exchange was late promoted from the position of ‘corresponding exchange “ to that of Affiliated Securities Market within the Federation Internationale des Bourses de Valeurs ( FIBV ) .Some 42 companies, with a market capitalisation of US Dollar ( USD ) 3.7 billion are listed on the SEM and 52 companies, with a market capitalisation of USD 1.5 billion are listed on the Development and Enterprise Market ( DEM ) .The latter was established in August 2006 to replace the over the counter market. Twelve active securities firm companies operate in the market.
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The trading of exchequer measures on the SEM market was introduced in December 2003, a first measure in a procedure aimed at puting up an active secondary market for authorities instruments. The market was opened to foreign investors after the lifting of exchange controls in 1994.
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Fixed Income Market
A Primary Dealer System was established in March 2002.There are six primary traders ; five Bankss and one agent. Foreigners can take part in the market through approved primary traders or agents. Government securities chiefly comprise exchequer measures, exchequer notes, authorities bonds and development loans stocks.
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Treasury measures are issued in adulthoods of 91 ( Mauritius Rupee MUR 15 billion in 2006 ) , 182 ( MUR 18 billion ) and 364 yearss ( MUR 19 billion ) . Treasury notes have tenors of 2 ( MUR 3.3 billion in 2006 ) , 3 ( MUR 2.7 billion ) and 4 old ages ( MUR 3.2 billion ) .Government bonds are issued with a 5 twelvemonth maturity.MUR 3 billion worth were issued in 2006.Development loan stock is issued with longer adulthoods ( up to 15 old ages ) .MUR 3.3 billion worth were issued in 2006.
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Securities of the Government of Mauritius are presently available to the populace either through direct command on the primary market or by direct purchase. Direct purchases are made through any of the six primary traders runing under the Primary trader system for Mauritius, implemented in February 2002. Primary traders are committed to supply uninterrupted two ways pricing for these securities.
Economy
Mauritius has one of the most successful and competitory economic systems in Africa ; 2009 GDP at market monetary values was estimated at $ 9.156 billion ( official exchange rate ) and per capita income at $ 12,400 ( buying power para ) , one of the highest in Africa. The economic system is based on touristry, fabrics, sugar, and fiscal services. In recent old ages, information and communicating engineering ( ICT ) , peculiarly concern procedure outsourcing, and seafood have emerged as of import sectors of the economic system. Over the past two decennaries, existent end product growing averaged merely below 6 % per twelvemonth, taking to a more than doubling of per capita income and a pronounced betterment in societal indexs. However, since 2002, the economic system started to confront some serious challenges as a consequence of globalisation, affecting the eroding of trade penchants for both fabrics and sugar, two pillars of the economic system. Economic growing declined to 3-4 % while unemployment, authorities budget shortage, and public debt increased steadily.
The authorities that took office in July 2005 embarked on a bold economic reform plan aimed at traveling Mauritius from trust on trade penchants to planetary fight. The reform scheme, was designed non merely to rectify financial failings but besides to open up the economic system, facilitate concern, better the investing clime, and mobilise foreign direct investing and expertise.A
In add-on to promoting the restructuring and modernisation of the fabric and sugar sectors, the authorities is seting much accent on the development of the ICT sector and the publicity of Mauritius as a seafood hub in the part, utilizing bing logistics and distribution installations at the Freeport ( free trade zone at the port and airdrome ) . To farther diversify the economic base and generate sustainable growing, the authorities is actively promoting the undermentioned economic activities: ( I ) the land-based pelagic industry, ( two ) cordial reception and belongings development, ( three ) health care and biomedical industry, ( four ) agro-processing and biotechnology, ( V ) the cognition industry, and ( six ) renewable energy.
The concern clime is friendly yet highly competitory. The World Bank 2009 Doing Business Survey ranks Mauritius foremost in Africa and 24th in the universe for easiness of making concern. The authorities ‘s aim is for Mauritius to rank among the top 10 most investing and concern friendly locations in the universe.
Mauritius has a long tradition of private entrepreneurship, which has led to a strong and dynamic private sector. Firms come ining the market will happen a well-developed legal and commercial substructure. Mauritius has a well-developed digital substructure and offers state-of-the-art telecommunications installations including international leased lines and high velocity Internet entree. Government policy is to move as a facilitator to concern, go forthing production to the private sector. However, it still controls cardinal public-service corporation services straight or through parastatals, including electricity, H2O, waste H2O, postal services, and broadcast medium. The State Trading Corporation controls imports of rice, flour, crude oil merchandises, and cement.
GDP ( 2009 est. , official exchange rate ) : A $ 9.156 billion.
Real growing rate ( 2009 est. ) : A 2.1 % .
Per capita income ( 2009 est. , buying power para ) : A $ 12,400.
Avg. rising prices rate ( 2009 est. ) : A 3.4 % .
Natural resources: A None.A
Agriculture ( 4.5 % of GDP ) : A Merchandises — sugar, sugar derived functions, tea, baccy, veggies, fruits, flowers, cowss and fishing.A
Fabrication, including export treating zone ( 19.4 % of GDP ) : A Types — labour-intensive goods for export, including fabrics and vesture, tickers and redstem storksbills, jewellery, optical goods, playthings and games, and cut flowers.
Tourism sector ( 8.7 % of GDP ) : A Main states of beginning — France, including nearby Gallic island Reunion, South Africa, and west European countries.A
Fiscal services: A 10.9 % of GDP.A
Trade: A ExportsA ( 2009 est. ) — $ 2.055 billion f.o.b. : fabrics and vesture, sugar, canned tuna, molasses, tickers and redstem storksbills, jewellery, optical goods, travel goods and pocketbooks, playthings and games, and flowers.A Major markets — Europe and the U.S.A Imports ( 2009 est. ) — $ 3.552 billion f.o.b. : manufactured goods, capital equipment, groceries, crude oil merchandises, chemicals, meat, dairy merchandises, fish, wheat, rice, wheat flour, vegetable oil, Fe and steel, cement, fertilisers, and fabric industry natural materials.Major providers — India, France, South Africa, China, Japan, Spain, Italy, Germany, Malaysia, and Thailand.A
Fiscal twelvemonth: A July 1-June 30.
Definition
A distinguishable subset of aA market, A society, A industry, orA economic system, whosecomponentsA shareA similarA characteristics.A StocksA are frequently grouped into different sectors depending upon theA companyHYPERLINK “ hypertext transfer protocol: //www.investorwords.com/992/company.html ” ‘HYPERLINK “ hypertext transfer protocol: //www.investorwords.com/992/company.html ” sA business.StandardA & A ; Poor ‘s breaks the market into 11 sectors. Two of these sectors, A utilitiesA andA consumer basics, are said to beA defensive sectors, while the remainder tend to be moreA cyclicalA in nature. The other nine sectors are: A transit, A engineering, A wellness attention, A fiscal, A energy, A consumer cyclicals, basicA stuffs, A capital goods, andA communicationsA services. OtherA groupsA interruption upA the market into different sector classifications, and sometimesA breakA themA downA further into subsectors.
