Export Processing Zones Development Authority


Economic Overview of the EPZ sector

General evolution

The value of EPZ exports reached Rs 18.3 billion in 1995 (+10.5% over 1994). The estimate for 1996 is Rs 20.5 billion yielding a growth rate of 6.0% as compared to 5.0% in 1995. The EPZ import bill for 1995 was Rs 10.9 billion. The ratio of net EPZ exports to total EPZ exports worked out to 41% for 1995 and is estimated to be 42% for 1996.

However, the number of enterprises continued to fall from 520 in 1994 to 490 in 1995. As at March 1996, the number stood at 480. These declines occurred mainly in "other garments" of the wearing apparel group and were 24 and 11 for 1995 and 1996 respectively.

As at March 1996, EPZ companies employed 81,048 persons (a 2.5% drop with respect to 1995). As at March 1996 a net of 30 closures were witnessed as against 10 for the same period in 1995.

Value added & Productivity

The value added per worker increased from Rs 26,443 in 1994 to 28,347 in 1995 (+7.2%) at 1982 constant prices, whereas exports per worker grew from Rs 201,190 to Rs 227,015 (+12.8%). There has been a continuous rise in productivity over the past years. It increased by 10 points from 1994 to reach 150 for 1995. These may be signs of more worker involvement and better systems being put in place (both management & production systems) in the EPZ enterprises.

Main markets

France, followed by USA, UK, Germany and Italy continue to be the main markets for Mauritian EPZ products. In 1995, exports to France were Rs 5.2 billion (share of 28.5%). USA (share of 21%) absorbed lesser imports from Mauritius - in fact, a decline of 8% was noted - exports dropped from Rs 4.2 billion in 1994 to Rs 3.9 billion in 1995. On the other hand, exports to UK (share of 18.7%) registered a very significant jump of 34% (Rs 2.5 billion to Rs 3.4 billion in 1995). Germany and Italy saw their imports of EPZ goods rise by 7.7 and 11.8% respectively in 1995.Provisional figures for the first semester of 1996 indicate substantial increases of about 20% and 16% to France and UK respectively with respect to corresponding semester in 1995.

Imports

The value of EPZ imports reached Rs 10.9 billion (+7.2% increase) in 1995. The increase for the first half of 1996 is 13.5% when compared to the same period in 1995. Major inputs for the textile/garment sector accounted for 61% of total EPZ imports. Imports of machinery and transport equipment fell to one billion rupees in 1995 from a level of Rs 1.1 billion in 1994.

Major sources of EPZ imports in order of magnitude are France (Rs 1.7 bn), Hong Kong (Rs 1.4 bn), India (Rs 1.4 bn), Germany (Rs 0.7 bn) and Taiwan (Rs 0.7 bn).

Textile and clothing sectors

These two sectors comprise 57% of total number of EPZ enterprises employ 87% of the EPZ workforce and contributed to about 81% of exports. It is the clothing sector which has played the role of locomotive of the EPZ in the 80's. Today, it constitutes the bulk of the sector -employing 82% of the EPZ workforce, comprising 50% of the number of enterprises and exporting 76% of Mauritian EPZ products.

Cotton T-Shirts (Rs 3.4 bn), pullovers (Rs 2.8 bn), woven men's shirts (Rs 2.4 bn) and woven men's trousers (Rs 1.5 bn) constitute the main exported items. Altogether, they account for 73% of garments exports. The value increase for (i) Cotton T-Shirts was 22%, (ii) Pullovers was 2% and (iii) for woven men's trousers was 8%. A decline of about 11% was noted in the exports of woven men's shirts.

The value of exports of Cotton T-Shirts to the UK recorded a jump of 59% in 1995. For France the increase was about 9%. For USA it markedly rose from Rs 83 million to Rs 222 million (more than one and a half times).

The value of export of pullovers fell (ranging from 1 - 56%) for the following countries: France, Germany, Netherlands, Spain and the USA, while that to UK significantly went up by Rs 217 million (+42%) thus offsetting all lower exports to countries just mentioned.

Woven men's trousers and woven men's shirts exports towards the USA registered decreases of about 10 and 26% respectively in 1995.

Non-textile /garment sector

As at March 1996, 206 enterprises were operational, employing 10,361 persons. Such companies constitute 43% of the total, employ 13% of the EPZ workforce and contribute to 19% of total EPZ exports in 1995. Their exports amounted to Rs 3.4 billion, which represents an increase of 16.8% over 1994. A similar increase was witnessed in 1994.

The subsectors which have been the most dynamic in 1995 are "Food and Live animals" (+20% in value), "optical goods" (+25%), "Toys, etc" (+28%) and "Jewellery" (+32%).

 

Table IV : EPZ MAIN ECONOMIC INDICATORS, 1985-1995

EPZ Indicators 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
No of enterprises as at Dec95
- New
- Closures

290
101
6

408
139
21

531
114
18

591
95
35

563
79
107

568
62
57

586
52
34

558
33
61

536
38
60

494
27
69

481
25
38

Employment as at Dec 95
- Net Change
- Growth rate (%)
53,951
16,429
43.8
74,015
20,064
37.2
87,905
13,890
18.8
89,080
1,175
1.3
88,658
-422
-1.0
89,906
1,248
1.4
90,861
955
1.1
86,937
-3,924
-4.3
85,621
-1,316
-1.5
82,176
-3,445
-4.0
80,466
-1,710
-2.0
Exports (f.o.b) (Rs Mn) 3,283 4,951 6,567 8,176 9,057 11,474 12,136 13,081 15,821 16,533 18,267
Imports (c.i.f): (Rs Mn)
- Raw materials (Rs Mn)
-Machinery&spareparts(RsMn)
2,530
[2,280]
[250]
3,863
[3,427]
[436]
4,801
[4,296]
[505]
5,890
[5,056]
[834]
7,502
[6,539]
[963]
7,348
[6,554]
[794]
7,067
[6,348]
[719]
7,133
[6,456]
[677]
9,326
[8,221]
[1,105]
10,125
[9,016]
[1,109]
10,856
[9,869]
[987]
Net Exports (Rs Mn) 753 1,088 1,766 2,286 1,555 4,126 5,069 5,948 6,495 6,408 7,411
Net Exports to Exports (%) 23 22 27 28 17 36 42 45 41 39 41
Value added at current prices (Rs Mn)
- Share in Manufacturing (%)
- Share in GDP (%)
1,333

46.5
9.6
1,860

48.6
11.3
2,585

51.9
13.1
3,125

53.4
13.5
3,400

51.1
12.7
3,975

51.1
12.5
4,406

50.3
12.2
5,011

50.4
11.8
5,702

51.0
11.9
6,373

50.2
11.5
7,093

50.0
12.0
Value added at constant 1982 prices (Rs Mn)
- Growth rate (%)
844
30.0
1,139
34.9
1,390
22.0
1,557
12.0
1,650
6.0
1,766
7.0
1,854
5.0
1,965
6.0
2,083
6.0
2,173
4.3
2,281
5.0
Productivity Index (1982= 100) 85 85 87 91 98 105 110 117 129 140 150
Investment (Rs Mn)
- Machinery (Rs Mn)
340
[260]
560
[450]
655
[530]
870
[730]
900
[840]
690
[640]
648
[610]
560
[540]
900
[875]
900
[880]
800
[780]
Value added per employee at 1982 constant prices ( Rs) 15,644 15,389 15,813 17,479 18,611 19,643 20,405 22,603 24,328 26,443 28,347
Exports (f.o.b.) per employee (Rs) 60,852 66,892 74,706 91,783 102,157 127,622 133,567 150,465 184,779 201,190 227,015

Source: CSO
1. Revised 2. Preliminary estimates

 

Table XIV: Labour cost and unit labour cost index, 1985 - 1994 E P Z Sector (1982 = 100)

Year Labour cost at current prices (Rupees Million) Labour cost index (A) Manufacturing production index (B) Unit labour cost index (A/B)
1982 211 100 100 100
1985 661 313 188 167
1986 975 462 254 182
1987 1.325 628 310 203
1988 1650 782 347 226
1989 1850 877 367 239
1990 2200 1.043 393 265
1991 2600 1.232 413 298
1992 3.111 1.474 438 337
1993 3.304 1.566 464 338
1994 3.624 1.718 482 356

This table is online: http://www.epzda.intnet.mu/epzinfo


Globalization and Workers' Rights

HOME
GLOBALIZATION
NATIONAL FRAMEWORK
MULTINATIONALS
INVESTMENT FUNDS
INTERNATIONAL LABOUR LAW
CODES OF CONDUCT FOR MULTINATIONALS
CORPORATE CODES OF CONDUCT
LABOUR MARKET TRENDS
AND GLOBALIZATION'S IMPACT

International Labour Office
Bureau for Workers' Activities
CH-1211 Geneva 22
Fax: +41 22 799 6570
ACTRAV Homepage: http://www.ilo.org/actrav/