- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- +230 245 9773
Efficient Business & Wealth Restructuring in Africa
Addressing the Hard Currency Situation
With the scarcity of hard currencies across the African continent, it has become urgent for businesses to quickly redefine and optimize their strategies. While several African countries are experiencing considerable growth and a hike in Foreign Direct Investments (FDI), efficiently structuring a business can be crucial in the success story.
Lately, many countries in Sub-Saharan Africa have experienced shortages of US dollars, one of the most popular currencies. The problem is particularly acute in economies such as Kenya, Tanzania, Egypt, Zimbabwe, Nigeria, Ghana and Zambia, which rely heavily on the dollar to pay off their foreign debts and fund critical imports of goods and services resulting in a painful battle for any business these countries to acquire US dollars.
Stability of the Mauritius International Financial Centre (IFC)
Mauritius, as a renowned and well established International Financial Centre in Africa, is firmly set to support the region. Recently, Moody’s Ratings affirmed Mauritius’ long-term credit rating for foreign and local currency issuers at Baa3 with a stable outlook, being Investment Grade. This reflects Mauritius’ strong economic growth and political stability and balanced against high debt levels. The stable outlook indicates Moody’s expectation that Mauritius’ credit profile will remain consistent with Baa3-rated sovereigns. This rating highlight Mauritius’ strong economic recovery, progress in fiscal consolidation, and ability to withstand shocks, underpinned by effective policy measures and robust institutions.
Navigating Through the Currency Challenge
Efficient business structuring can provide peace of mind for operations amidst currency challenges. Investments can still flow into African countries via Mauritius, as a holding company, to mitigate the currency risk. Investments, cash injections, expenses, capital expenditure, working capital will impact the investee company in Africa. In return, any sales invoicing or any other income pertaining to the business can flow into the holding company in Mauritius, which can then be used for further reinvestments.
Alternatively, a holding company can be set up in any African country, with a subsidiary incorporated in Mauritius to facilitate businesses and investment activities. This approach is subject to domestic laws permitting such arrangements.
Wealth management is another key aspect for the wellbeing of future generations and a healthy eco-system, through Mauritius, ensures the safeguard of assets and wealth.
Simplified Mauritian Structures
Mauritian structures can take several forms, such as:
- Global Business Licence Company
- Authorised Company
- Trust
- Foundations
Or more sophisticated structures such as:
- Family Office
- Captive Insurance Company
- Insurance/Reinsurance Broker
- Reinsurance business
- Fund Structures
- Variable Capital Company
Non-citizens can also relocate to Mauritius as professionals or investors or retirees, benefiting from a variety of special visas, permits and schemes designed for a convenient environment to live and do business. These include:
- Premium Visa
- Long Stay Visa
- Permanent Residence Permit
- Professional Occupational Permit
- Family Occupational Permit
- Several Investment Schemes
- Retirement Schemes
Fortree’s Support
Fortree positions itself as a boutique management company with tailor-made services to clients. Licensed by the Financial Services Commission and authorised to provide Captive Insurance solutions, we offer a full suite of financial services to meet our clients’ business needs ranging from company set up, secretarial & administration services, trust establishment & management, tax & finance advisory, accounting & payroll outsourcing, relocation to Mauritius to setting up and administering of sophisticated structures.
The Company
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Reach Us
- Office 215, Block B, The Junction Business Hub, Calebasses, Mauritius
- (230) 245-9773