Back on the Investment Map

Mauritius is looking to push beyond its traditional strength in the tourism and finance sector. A series of wide-reaching reforms in key sectors of the island’s economy make Mauritius’ investment appeal stronger than ever.

Mauritius, the tiny Indian Ocean island, has an ambitious goal: it wants to be known as a high-income country by the next generation and reach the ranks of the truly developed. To avoid the ‘middle income trap’, Mauritius is undergoing a quiet but fundamental transformation as it is climbing up the value chain towards an innovation-driven economy. With a flurry of infrastructure projects underway, modern Mauritius seeks to fully exploit its geographical position as a gateway to Africa and become a fruitful destination for foreign investment in a host of traditional and emerging sectors.

Foreign Attraction

Some of the biggest international businesses are giving Mauritius their vote of confidence. Banks such as HSBC, Barclays and Standard Chartered are operating on the island, as well as global pharma company Aspen while French holiday giant Club Med has invested in a resort. Real estate and financial services are attracting the majority of foreign direct investment (FDI) thus far, with France, China and South Africa being the top three investors. A large part of FDI is also redirected to India – 45% of Indian FDI inflows come from Mauritius –, as both countries have signed a double taxation agreement. However, there is widespread agreement that Mauritius needs to diversify its FDI portfolio by attracting real investments which create jobs, lead to the introduction of new technology, facilitate the transfer of knowledge and enable the country to produce new or better products not only for exports but also for the domestic market.

“Mauritius offers investors a number of advantages, with the most important ones being stability and peace. The other crucial aspect is the rule of law. In particular for international businesses it is important that they know they have access to independent courts if issues arise. Mauritius also has a highly educated workforce, and foreign companies will find bright professionals, accountants, lawyers and other service providers that are ready to assist them. All professionals are bilingual, speaking French and English, while some speak German too.”

Ken Poonoosamy, Managing Director of the Board of Investment

Board of Investment

Leading the charge in attracting foreign companies and capital to Mauritius is the Board of Investment (BOI), the national investment promotion agency of the Government of Mauritius. It is the first point of contact for investors exploring business opportunities in Mauritius and the region. The BOI wants to mirror the economy’s transition from middle-income to a high-income one, and attract quality investment in high-value added activities. Mauritius is eager to show the world that it is open for business, and its future development will rest on a number of new economic pillars, with ocean-related activities and information and communications technology (ICT) at the core of change. Through this approach, the nation will strengthen the blue economy, enhance aviation and maritime links via planned infrastructure investments, create a knowledge hub by upgrading and specialising the nation’s educational framework, and transform Mauritius into a smart country. Emphasis is equally placed on Africa as a vital partner for the island’s economic progress, and the support provided by the government to businesses oriented towards Africa will intensify in the coming years, improving Mauritius’ business-friendly environment further.

Mauritius’ Credentials

Ranked 28th worldwide and number one in Africa in the World Bank’s Doing Business 2015 list, Mauritius is already a welcoming jurisdiction for overseas investors and companies. The country has introduced a flat tax rate of 15% for income and corporate taxes, while its trade agreements and double tax treaties mean investors have preferential market access to 26% of the world population. The island’s strategic location at the crossroads of Asia and Africa has long been used to facilitate investments on both continents, and even though Mauritius is a small country in terms of size and scope, it boasts the right expertise and technical know-how to assist companies and global investors to tap new opportunities. As a politically and economically stable country, with a bilingual workforce, Mauritius is fast becoming an investment destination of choice. Setting up a business only takes three days, and the BOI is working on an E-licensing system which will bring together on one single platform the numerous processes required to do business, saving time and money for investors and businessmen.

“Mauritius offers a range of positive attributes which enable business objectives of Global & Regional Corporates. Investors should look at Mauritius for its conducive political and social environment, its state-of-art communication facilities, competitive operations and administration capabilities, strategic time zone, well established and efficiently regulated banking sector, its legal system and the availability of skilled personnel on the island.”

Ravin Dajee, Managing Director of Barclays Bank Mauritius Limited

A Holistic Approach

Going forward, the Board of Investment is keen to ensure that all projects in the pipeline are well implemented, while, of course, continuing to promote Mauritius as a peaceful, stable, and business-friendly platform for global businesses and increase investment levels. Transitioning Mauritius from a middle-income to a high-income economy means the island needs to step up its game on all fronts. Public and private sector are currently busy tackling the lack of human capital that the island is experiencing in certain sectors, while also channeling investment in infrastructure, including roads, electricity and air access.