Mauritius has long punched above its weight. The small island, located far into the Indian Ocean with a population of just 1.3 million and no natural resources to speak of, is one of Africa’s wealthiest countries on a per capita basis, while its financial system is among the most sophisticated on the continent. The country’s domestic loans-to-gross domestic product (GDP) ratio is about 70%, far higher than that of almost every other African country. And its two biggest locally owned banks have investment-grade ratings, which is a rarity for the continent’s lenders.
Mauritian banks have had to cope with a slowing economy in recent years, however. Real GDP growth fell from 5.5% in 2008 to 3.3% in 2009 and has since remained at similar levels, mainly because of the island’s exposure to struggling Europe, which buys 60% of Mauritius's exports and provides most of its tourists. Despite this environment, the country's banks have mostly proved resilient, maintaining fairly high profits and keeping non-performing assets low.
