• World Bank says Mauritius needs $5.6 billion climate funding

• Investment equals 2.3% GDP annually through 2030

• Report urges reforms, private capital to close $213 million gap

Mauritius will need to mobilize $5.6 billion over the next 25 years to sustain its development while tackling climate change, according to a World Bank climate and development report published on Feb. 18.

The total includes $4.2 billion for mitigation and adaptation measures and $1.4 billion for economic reforms.

The investment equals 2.3% of GDP annually through 2030 and 0.9% per year over the following two decades. The World Bank warns that the cost of inaction would be higher, estimating potential losses of up to 4% of GDP by 2050.

Mauritius contributes just 0.01% of global greenhouse gas emissions but is highly exposed to climate risks, including rising sea levels and temperatures, as well as more frequent heatwaves, droughts and intense cyclones.

One-third of the population lives along the coast, and the economy relies heavily on tourism and fishing. The report says the proposed investment would strengthen climate resilience and unlock sustainable growth opportunities.

Focus on structural reforms

To reduce exposure and vulnerability, the World Bank calls for structural reforms. Recommended measures include investments in coastal protection, disaster risk reduction systems, expanded social protection schemes and reforms to improve water sustainability.

Aging and inadequate infrastructure captures only 8% of annual rainfall. Of that amount, 61% is lost before reaching users and is classified as non-revenue water. As a result, barely 3% of total precipitation is effectively used. Without reform, Mauritius is projected to shift from water stress to outright water scarcity by 2030, the report warns.

The World Bank also urges policymakers to prioritize high-impact sectors such as sustainable tourism, including diversification inland, the blue economy through support for sustainable fishing, and renewable energy.

While the government aims to generate 60% of electricity from renewable sources by 2035, the report estimates that nearly $373 million in additional investment will be required by 2030. With fiscal space constrained and public debt at 88.5% of GDP in June 2025, the private sector will need to take a larger role.

The annual financing gap is estimated at $213 million. Public funds should act as a catalyst to mobilize private capital, the World Bank said. Local banks, insurers, pension funds and payments for ecosystem services could help bridge the gap, provided the government moves to reduce investment risks.

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