The latest Moody’s Report on Mauritius, dated July 31, 2025, lays down the criteria for an improvement in the country’s credit rating outlook from negative to stable, or alternatively, for a downgrading to sub-investment grade. Moody’s considers that Mauritius could return to a stable outlook, on positive signs that (1) Govt revenue-enhancing measures are yielding results, (2) efforts to reduce Govt spending are sustained and (3) the risk of a contractionary impact on GDP growth is contained.

Following budget presentation in June 2025, Moody’s cautions that “A key risk is that tighter fiscal policy may slow growth more than expected”, and that Govt’s growth estimates “may prove optimistic given the tighter fiscal stance”. In view of added global uncertainty, Moody’s warn that “Slower growth would challenge revenue targets and delay debt reduction efforts, compounding the risks to fiscal consolidation”, which “would be likely to result in a rating downgrade”.

With sluggish GDP growth, an improvement in the country’s credit rating will thus remain uncertain. Weak growth will even raise the risk of a credit downgrade. In response, Govt needs to pursue strong policies to boost economic growth. The recent Govt budget proposes to further develop human capital, invest in physical and digital infrastructure, and foster innovation and technology. To ensure better growth in the shorter term, Govt should adopt more overall productivityenhancing measures, and also design a targeted foreign investment strategy to attract capital in new sectors.

The development of a biotechnology sector anchored in biomedical research and preclinical testing could lead to a new growth pillar. Biomedical testing on primates presents great potential, in the wake of the new 15% levy applicable to our primate exports to the U.S., and the newly introduced domestic levy on primate exports. The new global tariff regime is opening up alternative economic oppor tunities. Pivoting towards local value added can deliver a clear strategic advantage, provided biomedical testing is conducted under a reviewed legal and regulatory framework to align with the strictest international and ethical standards of animal welfare.

By investing in world-class infrastructure and institutions, Mauritius can build a credible and trustworthy platform for a life sciences industry, like Singapore did in the early 2000s, by mobilizing its diaspora and global investors. Mauritius can leverage its bilingual talent pool, its geopolitical relevance to both Africa and Asia, and its closer strategic relationship with the U.S., in the wake of the Chagos deal. Mauritius is well positioned to outpace competitors like Rwanda, Kenya, and South Africa, and should indeed aspire to become the “Switzerland of Africa” in life sciences.

A renowned U.S. company, which is already a major investor in Mauritius, is preparing to engage in biomedical research with our educational and research institutes. It provides drug discovery and safety testing services in the U.S. and internationally, and accounts for a dominant share of U.S. FDA-approved drugs in the last five years, including Covid19 vaccines. Other U.S. and EU-based researchers, especially from our scientific diaspora are also actively exploring investment opportunities in the life sciences services industry in Mauritius.

Animal testing will remain a controversial issue, but the preeminent objective is to advance health care by finding remedies for every incurable human disease. Last week, a global team of scientists in the field of biomedical research convened in Mauritius for an inaugural primate management conference, at the initiative of the University of Texas MD Anderson Cancer Centre. On this occasion, the Minister of Tertiary Education, Science and Research reaffirmed Mauritius’s resolve to become a global centre of biomed ical excellence.

An emerging biomedical and life sciences sector has the potential to reverse the brain drain and offer quality career options to locally trained professionals, even if it may initially rely on foreign scientific expertise. Biotech offers a direct runway to revive economic growth. Govt must seize this unique opportunity to create a new high-value export services sector and also avert a potential Moody’s downgrade.