Mauritius is on the move!
What does the future of Mauritius look like when its roads, runways, and water systems are redesigned for growth? As the country accelerates investment in construction and infrastructure, new projects are reshaping both the urban landscape and regional connectivity.

Mauritius Infrastructure: Driving Growth and Investment Opportunities

From the extension of metro lines and highways to the long-awaited Rodrigues runway and critical upgrades in water and flood management, Mauritius is positioning itself as a resilient, modern hub for business and tourism in the Indian Ocean. But beyond the numbers, what do these projects mean for investors, international companies, and those considering Mauritius as a base of operations?

In this report, we unpack the government’s 2024–2025 priorities, highlight where opportunities are emerging, and offer a forward-looking view of how 2026 could redefine the country’s economic landscape. Discover how infrastructure is building Mauritius’ tomorrow.

Macroeconomic Context & the Role of Construction

In 2024, Mauritius rebounded robustly from pandemic-related slowdowns with real GDP growth of 4.7%, supported significantly by services, tourism, and construction investments (IMF eLibrary, IMF). Construction was a clear engine of growth, particularly in social housing and transport corridors (IMF, Fitch Solutions).

However, by early 2025, construction activity moderated. Q1 2025 saw the construction sector contract by 4.3% following a strong Q4 2024 performance (CARE Ratings). The OECD projects further deceleration, with gross fixed capital formation declining 6.1% in 2025, before rebounding to 3.7% growth in 2026 (OECD). Despite this, growth is expected to return to 3.4% in 2026 as investment sentiment recovers (OECD).

Transport Infrastructure: Enhancing Mobility and Efficiency

The 2025–26 national budget reaffirms governmental commitment to transport infrastructure, earmarking MUR 3 billion for completion of existing road projects, and an additional MUR 600 million for the rehabilitation and upgrading of roads (EY). New initiatives include flyovers, link roads, and two key motorway projects: M4 East and M5 South—though no funding specifics are provided (EY).

Public transport is also expanding. Metro Express lines will extend to La Vigie, St Pierre, and Côte d’Or stations (EY). These extensions build on prior phases that connected Port Louis to Curepipe, leveraging Indian financing and French and Indian technical support (Wikipedia).

Outlook 2026: Continued implementation of urban transit expansions and motorway segments could catalyze efficiency gains and address congestion, but realization hinges on project-specific financing and execution.

Rodrigues: Gateway to Regional Growth

Key allocations include MUR 1.4 billion this year toward the new Rodrigues runway, part of a broader MUR 7.9 billion project (EY). Complementing this, MUR 900 million over four years will support critical water and electricity infrastructure, food security, and tourism enhancement in Rodrigues (EY).

The Implication? This strategic placement of capital will likely double visitor capacity to Rodrigues, unlocking tourism potential and elevating regional integration. For 2026, full runway operations could trigger notable growth in regional tourism and related services.

Water and Sewage Infrastructure: Securing Essential Services

The budget sets aside MUR 2.5 billion for water infrastructure, including MUR 1.2 billion for replacement of aging pipelines and MUR 930 million to launch the Rivière des Anguilles dam—though construction has yet to commence—as well as MUR 1.1 billion for sewage projects (EY).

For investors, these investments are critical for achieving 24/7 water access and modern sanitation. However, the delay in dam initiation signals potential execution risks. A successful 2026 start could mark a turning point in water sustainability.

Flood & Landslide Management: Mitigating Climate Risks

Flood resilience remains a priority, with MUR 1 billion committed for 132 drainage projects this year, part of a total MUR 3.5 billion investment (EY). Additionally, MUR 178 million is designated for landslide and slope stabilization works (EY).

On a strategic side, Climate-induced flash floods demand rapid, high-quality implementation. Delays could undermine infrastructure resilience, affect investor confidence, and increase costs in the medium term.

Private Sector Participation & Policy Enablers

Mauritius maintains a highly favorable investment climate—ranking first in Sub-Saharan Africa for economic freedom and supported by robust institutions, streamlined regulations, and investor-centric reforms (OECD, BTI 2024).

Nonetheless, budget documents reveal limited targeted support for small construction firms. Public-private collaboration, especially in infrastructure and flood mitigation, remains underleveraged (EY).

Looking into the future, enhancing SME capacities through technical assistance and streamlined procurement could expand construction sector participation and improve delivery timelines.

2026 Outlook: Momentum and Risk Factors

• Recovery in construction investment: As fiscal tightening eases and delayed projects resume, fixed capital formation may rebound modestly (~3.7%) in 2026 (OECD).

• Completion of high-impact projects: Rodrigues runway, water projects, Metro extensions, and road upgrades may be completed or operational, increasing transport efficiency and public utility access.

• Risks: External shocks (e.g., tourism slowdown), project execution delays, fiscal consolidation pressures, and rising public debt (~90% of GDP) could constrain infrastructure rollout (OECD, EY, CARE Ratings).

The Key Takeaway

Strategic Insights for Investors & Relocators

• Infrastructure as strategic advantage: Mauritius continues to invest strongly in transport, water, and flood resilience—creating a more accessible, reliable, and investor-friendly environment.

• Project execution is critical: While financial commitments are clear, delivery effectiveness will determine real-world impact.

• Emerging opportunities: The Rodrigues runway and water infrastructure offer high upside in 2026 as they advance—ideal for public-private partnership frameworks.

• Policy environment remains strong: A liberal, well-regulated economy combined with strategic infrastructure investment enhances Mauritius’ profile as a regional hub.

Looking Ahead

For 2026, the success of these infrastructure initiatives will shape Mauritius’ ability to sustain growth, attract foreign direct investment, and strengthen resilience—making the upcoming year a pivotal window for strategic engagement.

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