- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- +230 245 9773
Mauritius – The Magnet for Investment into Africa!
Africa is unquestionably the emerging pole of interest for international investors given its market size of almost 1.4 billion people and huge amount of unexplored natural resources.
Despite overhauls in global business landscapes over the last two decades and retaliation by competing countries to woo FDI, Mauritius remains a jurisdiction of choice for foreign investors to structure investments into African countries.
Mauritius has emerged from a simple sugar cane-based economy in the early 80’s to a diverse and sophisticated service economy encompassing tourism, banking, information and communication technology to name a few.
Mauritius is undoubtedly an investor-friendly country and favoured as a secure corridor to venture into the continent due to the following factors:
- Ease of Doing Business
The 2020 World Bank report ranks Mauritius as 1st in Africa (13th Globally) on ease of doing business. This has led the Mauritian IFC to be frequently referred to as the Gateway to Africa, being a jurisdiction of choice for many businesses looking to set up a base to expand into the African markets.
The absence of exchange control and being strategically located in a time zone of GMT+4 makes Mauritius an ideal place to conduct international business within Africa itself.
- Attractive Tax Regime
Mauritius is party to a wide network of Double Taxation Avoidance Agreements (“DTAAs”) to ensure that the same income is not taxed twice by two tax authorities. Currently there are 44 in force, 13 awaiting ratification/signature and negotiation is in progress for another 20.
The tax regime in Mauritius is very appealing with tax holidays of 4 – 8 years for investment in specific sectors and a ceiling tax rate of 15% only. Businesses engaged in qualifying export activities are taxed at the special rate of 3%.
Businesses operating under the Global Business regime can benefit from 80% tax exemption on certain income stream, bring the effective tax rate to 3% only. In certain cases, the effective tax rate can further be reduced to below 3% upon opting to claim credits for actual foreign taxes suffered or deemed to have been suffered under the tax sparing provisions.
Last but not least, there is no withholding tax on repatriation of profits as dividend and capital growth is not subject to capital gains tax, making exit planning much simpler.
- Investment Protection & Trade Agreements
No doubt foreign investors are naturally attracted to safe locations which guarantee predictability, certainty and security, and Mauritius does tick all the boxes. Mauritius is a contracting party to numerous Investment Promotion and Protection Agreements (IPPAs) which in itself should comfort foreign investors that the risk of a hostile takeover or nationalisation is practically non-existent.
Mauritius has free trade agreements with India and China. In addition, Mauritius is a member of many trade-promotion communities such SADC, COMESA, AfCFTA etc.
- Robust Legal System
Mauritius has a dual legal system, combining the advantages of both Common and Civil laws. In addition, two leading arbitral institutions – the LCIA-MIAC and PCA are present in Mauritius. The LCIA-MIAC is a partnership comprising the London Court for International Arbitration and the Mauritius International Arbitration Centre, and the PCA is the Permanent Representative Office of the Permanent Court of Arbitration. Foreign investors can rest assured that there will be fair redress for losses suffered by the contracting parties.
- Skilled Labour
Mauritians are bilingual in English and French, and skilled in various fields. The government of Mauritius is always introducing and promoting new and tailored courses & trainings to meet the ever-changing requirements from dynamic businesses. In the meantime, the government continues to open up the economy with a to allowing talented foreign professionals to relocate to Mauritius to close gaps in specialised areas where the local expertise may not be there yet.
- Infrastructure
Over the last two decades, Mauritius landscape has significantly changed with the ever-increasing investment in modernisation of infrastructure by successive governments. Mauritius boasts an impressive airport, road network and excellent telecommunication connectivity, making engaging in global business even simpler.
- Conditions in place for relocation
Setting up a new business in a foreign land, to some extent, entails travelling back and forth to the jurisdiction. Often the promoters and/or key personnel have to be relocated, at least temporarily, to ensure flawless operations from day one.
Naturally, anyone will undoubtedly prefer a location where it is safe and secure to work, live and do business. Mauritius, being a diverse and multicultural country, is blessed with social and political stability and is renowned for its hospitality. Modern healthcare services and comprehensive education system with high standards private schools are present on the island. Foreigners feel being at ease to mix and socialise with locals from day one due the reasons elaborated above.
In a nutshell, Mauritius has established a strong reputation as an investment hub that is trustworthy and safe in terms of good governance, ethical, economic, and political transparency. This little country boasts one of the fastest growth rates in Sub-Saharan Africa, combining a vibrant economic environment with an appealing lifestyle.
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Mauritius is a magnet!
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- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- (230) 245-9773