Chinese Investors Look to Tap into Mauritius’ Green Energy Potential

Chinese investors have recently turned their attention to Mauritius, a small island nation in East Africa, not for its famous sugar plantations, but for its ambitious green energy targets. The Mauritian government aims to derive at least 60% of its energy from renewable sources by 2030, a goal that has attracted interest from Chinese solar-panel makers and entrepreneurs in the renewable-energy sector.

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Mahen Kumar Seeruttun, the Minister of Financial Services and Good Governance, shared at the Asian Financial Forum in Hong Kong that solar energy is one sector where Chinese investors have shown clear interest. With their technological edge and cost advantage in the renewable energy sector, China has the opportunity to export products and technical expertise to Mauritius and other developing nations.

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Moreover, Chinese investors see Mauritius as a gateway to the larger African market. Being a member of the African Union and a signatory to the African Continental Free Trade Area, Mauritius is considered relatively wealthy and politically stable, making it an attractive prospect for investors. The country ranked 13th globally in the World Bank‘s Ease of Doing Business survey, further enhancing its appeal.

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While China has made significant investments in Africa under its Belt and Road Initiative, renewable energy remains an untapped resource. Private Chinese companies have shifted their focus towards smaller and more profitable projects such as green energy, aligning with the belt and road push. These investments serve both economic interests and China’s desire to strengthen its relations with African nations.

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For Mauritius, Chinese energy investment presents an opportunity to foster closer ties with China and benefit from the free trade agreement they have had for three years. The country hopes to increase exports of its specialized cane sugar and sugar-based rum to China, marking a significant growth in trade between the two nations.

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Overall, Chinese investors see Mauritius as a promising partner in the renewable energy sector and as a gateway to the African market. The potential for collaboration between Mauritius and China in achieving renewable energy goals and boosting bilateral trade looks bright.