Foreign Workers Send Rs 2.7 Billion Home as Diaspora Transfers Fall by 6.4%

Mauritius remains a net exporter of funds from worker remittances, a trend underlined by figures released by the Bank of Mauritius (BoM) for the second quarter of 2025. The latest data confirms a significant structural imbalance, as money transfers sent by foreign workers in the country continue to rise while money sent home by Mauritians abroad has declined.

Outward remittances—funds sent by foreign workers operating in Mauritius—hit Rs 2.7 billion, a 4.1% increase from the Rs 2.6 billion recorded in the second quarter of 2024.

This surge is concentrated heavily in transfers to India (Rs 1.1 billion) and Bangladesh (Rs 770 million), which together account for nearly 70% of outgoing flows.

Nepal was the third-largest recipient, at Rs 346 million, ahead of Madagascar and France.

Inward Flows Weaken

In contrast, inward remittances—funds sent by the Mauritian diaspora or relatives abroad—fell by 6.4%, declining to Rs 777 million in Q2 2025 from Rs 830 million a year earlier.

This reduction in incoming funds reflects a weakening of financial flows, primarily from key contributing countries:

• France (24% of the total)
• United States (19%)
• United Kingdom (14.8%)

Smaller, more marginal contributions came from countries including Australia, Canada, Italy, and Ireland.

Economic Impact and Structural Shift

This growing disparity between money inflows and outflows highlights the increasing economic reliance on foreign labour in key sectors such as construction, hospitality, manufacturing, and domestic aid.

The data illustrates a persistent reality: while transfers from the Mauritian diaspora are slightly retreating, the steady increase in outgoing flows reflects the need for foreign labour but also constitutes a net drain on the nation’s balance of payments.

The BoM notes that this structural shift underscores Mauritius’s increased dependency on economic migration.

Low Transaction Costs Maintained

Despite the imbalance, Mauritius is fully compliant with the United Nations’ Sustainable Development Goal 10.c regarding the cost of money transfers, the BoM confirmed.

The country maintains some of the lowest transaction costs globally:

• Inward transfers carry a negligible average fee of 0.06% of the amount transferred, well below the international target of under 3%.
• Outward transfers incur an average commission of 1% from local banks and bureaux de change, with a range between zero and 1.9%.

Maintaining these low transaction costs enhances Mauritius’s attractiveness for financial transfers and ensures compliance with international standards.

Source: l’Express