Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa

The Mauritius-China Free Trade Agreement (MCFTA) is analyzed as a strategically motivated pact that likely benefits China more than Mauritius. Due to a massive trade imbalance and limited industrial capacity, Mauritius is unlikely to significantly increase exports to China, while Chinese imports and real estate investments are expected to grow. The paper suggests the MCFTA may be a geopolitical tool for China to increase its influence in the Indian Ocean and a prototype for future agreements with other African nations, though it currently poses little risk of diverting Mauritian trade away from the African continent.

• The Mauritius–China Free Trade Agreement (MCFTA) is likely to exacerbate the existing trade imbalance, as Mauritian exporters lack the capacity to meet the scale of demand in the Chinese market. While the agreement provides duty-free access for various products, the authors argue that the benefits will be limited and biased toward China, potentially inflating the trade deficit.
• China's interest in Mauritius is likely driven by geopolitical and strategic goals rather than economic ones. These include utilizing Mauritius's position in the Indian Ocean, extending the Belt and Road initiative, and establishing a services base in the Jin Fei zone to export to Africa under the AfCFTA.
• The MCFTA provides significant tariff liberalisation, with immediate duty-free access for Mauritius on 7,500 tariff lines and a tariff rate quota (TRQ) of 50,000 tons of sugar. However, the authors question the utility of the sugar TRQ because local production has been declining, with a deficit of more than 85,000 tons in 2020.
• Chinese investment in Mauritius has primarily flowed into real estate rather than industrial diversification. The Jin Fei Economic and Trade Cooperation Zone (ETCZ), originally intended as an industrial park, evolved into a real estate project and smart city, failing to create significant industrial linkages or job creation.
• China has out-competed Mauritius in traditional textile and clothing markets, particularly in Europe. Between 2000 and 2019, Mauritian apparel exports declined by over 34%, with European exports dropping by almost 60% while Chinese exports to Europe grew nearly nine-fold.
• There is limited risk that the MCFTA will divert Mauritian trade away from Africa. This is due to low competition between Chinese and African imports into Mauritius (electronics/construction materials vs. agricultural/mineral products) and the fact that Mauritius maintains a more balanced trade relationship and a services surplus with Africa.
• Chinese aid to Mauritius consists largely of tied aid projects executed by Chinese contractors, which reduces the multiplier effect on the local economy. The availability of this 'easy' finance has contributed to Mauritius's national debt rising above 100% of GDP.

APA

ANCHARAZ, V., & NATHOO, R. (2022). Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf

Chicago

ANCHARAZ, VINAYE, and RAJIV NATHOO. Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa. South African Institute of International Affairs, 2022. https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf.

Wikipedia

{{cite report |last1=ANCHARAZ |first1=VINAYE |last2=NATHOO |first2=RAJIV |title=Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa |publisher=South African Institute of International Affairs |date=May 2022 |url=https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ancharaz2022mauritius, author = {ANCHARAZ, VINAYE and NATHOO, RAJIV}, title = {{Mauritius’ Free Trade Agreement with China: Lessons and Implications for Africa}}, institution = {South African Institute of International Affairs}, year = {2022}, month = may, url = {https://saiia.org.za/wp-content/uploads/2022/05/Policy-Insights-127-ancharaz-nathoo.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }