On July 22, 2024, Mauritius and the UAE took a historic step towards stronger economic collaboration with the signing of a Comprehensive Economic Partnership Agreement (CEPA). This agreement, the UAE’s first CEPA with an African nation, represents a strategic move to bolster bilateral trade and investment, with a focus on the financial services, logistics, and renewable energy sectors. It sets the stage for Mauritius and the UAE to become increasingly interconnected, creating new opportunities for trade facilitation and investment flows between the Gulf and Africa.
The agreement eliminates a significant number of tariffs: Mauritius will remove 99% of tariffs on imports from the UAE, while the UAE will eliminate 97% of tariffs on Mauritian goods. This reduction aims to make trade more cost-effective, boosting Mauritius's economy by over 1% and contributing 0.96% to the UAE's GDP by 2030. Both nations anticipate that these tariff reductions will stimulate their respective business ecosystems, strengthen supply chain networks, and enhance overall global competitiveness.
In 2023, trade between Mauritius and the UAE reached USD170.4 million, reflecting a 14.5% increase from the previous year. The UAE has already established itself as a significant investor in Mauritius, with USD13.2 billion invested across sectors such as tourism, real estate, renewable energy, and technology. This agreement will likely accelerate that trend, reinforcing Mauritius's position as an emerging trade and investment hub in Africa and enabling UAE investors to expand into one of Africa’s fastest-growing markets.
Mauritian Prime Minister Pravind Kumar Jugnauth emphasized the broader objectives of the CEPA, highlighting that this agreement is about more than tariff removal—it aims to foster a deep economic partnership that benefits both the UAE and Mauritius and contributes to strengthened trade corridors across the Gulf region and Africa. Meanwhile, the UAE has its sights set on expanding its non-oil trade, targeting AED4 trillion in foreign trade by 2031, with a goal of AED800 billion in exports.
A key component of this partnership lies in energy collaboration, especially as Mauritius embarks on an ambitious clean energy program. The country has set a target of generating 60% of its electricity from renewable sources by 2030, including solar, wind, biomass, hydro, and waste-to-energy initiatives. The UAE’s expertise in renewable energy development positions it as a valuable partner to Mauritius in achieving these goals, potentially setting a sustainable energy example for Africa.
UAE Minister of State for Financial Affairs Mohamed Hadi Al Hussaini described the CEPA as a strategic milestone that enhances the UAE’s role as a global trade and investment facilitator, while the UAE’s Minister of Energy and Infrastructure, Suhail bin Mohammed Al Mazrouei, echoed this sentiment, pointing to the UAE’s role in supporting Mauritius’s transition to a low-carbon economy.
The Mauritius-UAE CEPA is also part of a larger UAE strategy to deepen ties with global partners through economic partnerships. Since 2022, the UAE has signed CEPAs with countries including India, Turkey, Israel, and Indonesia, and is in talks with several others. By solidifying trade and investment networks across diverse regions, the UAE is furthering its role as a central player in global trade.
This new agreement marks a significant chapter for both Mauritius and the UAE, as they work together to unlock trade potential and develop sustainable business operations. With shared goals in economic diversification, technological collaboration, and energy transformation, both countries stand poised to benefit from a stronger, mutually advantageous partnership that could reshape the landscape of trade between the Gulf and Africa.
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