Breaking into Africa

Mauritius wants to be the go-to country for entrepreneurs seeking business opportunities on the African continent.

Traditionally seen as a route for investment into India, Mauritius is expanding its commercial activities on the African continent and raising its visibility on the world stage as a gateway to this promising region. Despite a current economic slowdown, there is widespread belief that sub-Saharan Africa still offers ample room for growth and its full potential has yet to be unlocked. Mauritius is looking at mainland Africa as the next frontier for its own growth and is busy fostering ties with other African nations for the benefit of local and international companies seeking to cash in on investment opportunities.

A Centre of Excellence

The country has adopted a new Africa strategy, which envisions Mauritius to become a platform for trade, investment and services. Government and private companies are working hand-in-hand to transform the island’s economic sectors into regional hubs of excellence for Africa, be it in the medical or educational fields, which are increasingly attracting more customers from Africa’s emerging middle class, but also for trade and investment. Vice-versa, Mauritius’ is smoothing the way for companies seeking growth opportunities on the continent. Some 80 Mauritian companies are reported to have ventured into the region, including many of the island’s largest diversified groups and conglomerates. Foreign companies, including Indian and Chinese, are also taking notice of what the island has to offer. Over the years, Mauritius has developed a network of double tax and investment promotion agreements with many African nations, while its involvement with the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) offers companies preferential access to a market of 600 million people. To enhance trade and investment, the Mauritian government is also seeking to set up Special Economic Zones in a number of African nations. Discussions are said to be at advanced stages with Ghana, Senegal and Madagascar.

“Mauritius is open for business. Our Africa Strategy aims at building new economic partnerships for longterm sustainability across the continent. Companies, established in Mauritius, are encouraged to explore business opportunities in Africa while leveraging on the strong economic fundamentals of the country and the advantages that Mauritius offers as competitive, business friendly and well regulated platform.”

Ken Poonoosamy, Managing Director of the Board of Investment

Welcoming Multinationals

With its thriving finance centre, Mauritius is also fast becoming a preferred centre for Regional and Global Headquarters of corporations keen to tap Africa’s vast potential. Multinationals and regional companies setting up their operational, administrative and financial base in the country can take advantage of Mauritius’ competitive fiscal framework, while on the production site, manufacturing companies can launch their activities in the island’s Freeport and benefit from a tax exemption from both corporate tax and VAT if their products are meant for export to African countries. Despite all its positives, the island also needs to address some challenges. Better sea and air connectivity is seen as crucial in fulfilling Mauritius’ Africa strategy. While investment is already being channelled into the upgrading of the island’s port to capitalise on the increase in shipping of commodities and manufactured goods between Africa and Asia, a new air link between Singapore and Mauritius, operational since March 2016, is set to bolster business ties between the two continents. Many professionals believe that if the island also succeeds in improving regional flight connectivity to other hubs in Africa, it can capture an even bigger portion of Africa-focused business.

“Mauritius is in a position to geographically and culturally spearhead the growth of Africa, while adding value as a bridge for European and Asian businesses that are interested in Africa. Mauritius is a place to have substance, not a place for letterbox companies. We have built up a strong financial sector, but the island offers so many other opportunities. The international business community should really consider doing business from Mauritius and not through Mauritius.”

Richard Arlove, CEO of ABAX