Abstract
The Mauritius Export Processing Zone (MEPZ) is originally modeled on the Kao-Hsiung EPZ, Taiwan. The literature credits Sir Edouard Lim Fat, a visionary Mauritian of Chinese descent, as the pioneer of the MEPZ. During a presentation at the International Sugar Congress (Mauritius, November 1969), he made a strong plea for government to emulate the Taiwanese Model to tackle socio-economic problems. One significant difference from other countries' enclave-type EPZs was that the entire island of Mauritius was 'declared' as EPZ. The MEPZ was underpinned by a wide array of tax incentives & imaginative policy decisions making it one of the best performing economies in Africa-from USD 200 to over USD 10, 000 GDP per capita (middle income country). This paper will also describe the sustainable backward & forward linkages that the EPZ has enabled, unleashing an entrepreneurship momentum that continues to grow.
Highlights
Mauritius is a small sub-tropical island of 2,040 km2 situated in the Indian Ocean, off the east coast of Madagascar
The MEPZ was an attractive location country for a number of reasons: 1) Arson in Hong Kong factories was prevalent in the 1960s; 2) Military clashes between China and Taiwan were feared; 3) Hong Kong families and firms had been forced out of Shanghai, leaving all possessions behind, after regime change in 1949; 4) Hong Kong had an established garment industry complete with equipment, technicians, and marketing strategies (Lim Fat, 2010)
A combination of perfect timing with textile producers looking for new production bases & markets & Mauritius leaving no stone unturned to welcome investment
Summary
Mauritius is a small sub-tropical island of 2,040 km situated in the Indian Ocean, off the east coast of Madagascar. Just after independence from the British in 1968, Mauritius was a monocrop economy, totally (97%) dependent on sugar exports. To avoid social & political unrest as well as economic bankruptcy, one of Meade’s recommendations was the setting up of import-substitution industries (ISI) such as soap, tea, seafood, and clothing, but its success was minimal owing to the exiguity of the domestic market, lack of investment & poor technological skills (Mohit, 2011; Yeung Lam Ko, 1998). By the end of the 1960’s, owing to the worsening employment situation, it was evident that the ISI strategy had failed & existing enterprises were in a precarious financial situation
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