Mauritius

Mauritius- A Unique Experience for Investors

Introduction

The Republic of Mauritius is located east of the southern part Africa in the Indian Ocean and is increasingly seen as a strategic business and investment platform between growing Asia and emerging Africa due to its well-regulated jurisdiction.

Mauritius offers a unique experience to investors.

The island State is internationally cited for its democratic tradition, rule of law and stability on all fronts ever since its independence in 1968.  It ranks first in the African region with respect to key indices like the World Bank’s Ease of Doing Business, the Mo Ibrahim African Governance Index, the Heritage Foundation Economic Freedom and the Economist’s Democracy Index amongst others.

From an agricultural mono-crop system, the Mauritian economy has been transformed to a diversified multi-sectoral one with the manufacturing industry, tourism, ICT/BPO and financial services being now among the main drivers. Mauritius is viewed by the World Bank as an upper-middle income country.  Owing to the fundamentals in place, the economy has demonstrated resilience in the face of global financial turmoil. The growth rate was 4% in 2010.

Mauritius is known for its quality of life and its multilingual workforce. Life expectancy and the literacy rate are among the highest in Africa.

Basic facts and figures

Population 1.3M Constitution Westminster Parliamentary model
Location 2,400 km off the south-eastern coast of Africa Capital Port Louis
Workforce 541,000
Size 2,040 sq km
Main languages English (Official), French Currency Mauritian Rupee – MRU

(Exchange Rate as at Feb.2012: USD 1 = MRU 30)

Time zone GMT +4 hours GDP USD  10.299 billion
General election Every 5 years GDP per capita USD 7,500
Climate Sub-tropical, with temperatures ranging

20o C to 30o C

Exclusiveeconomic zone 1.9 M Sq. km

 

 

Open economy

The Mauritian economy is one of the fastest growing economies in sub-Saharan Africa. In the last four decades, the country has moved from a mono-crop sugar-dominated economy to a services-oriented one. It is now geared towards the leveraging of innovative technologies. The tertiary sector currently accounts for 70% of GDP, a fair indication of the country’s recent track record.

While growth sectors like tourism and manufacturing maintain their resilience despite the repeated buffets of global shocks, many opportunities have opened up in emerging sectors such as the ICT / BPO, Healthcare and Knowledge which are likely to be among the main economic pillars in the medium term. This relatively fast transition to a middle-income status is the result of sound economic management coupled with a vision to upgrade and improve the general standard of living. This objective is espoused by the government, the business community and civil society at large.

Mauritius enjoys preferential access to the markets of the European Union, the United States, and Africa   through its membership to SADC (Southern African Development Community) and to COMESA (Common Market for Eastern and Southern Africa). Furthermore, it has longstanding and special trade relations with India and China.

Main economic sectors Share of GDP

(yr. 2010)

Manufacturing 18.3%
Financial services 10%
Tourism 8.2%
ICT-BPO 6.4%
Food industry 4%
Construction 6.9%
Real Estate 11.9%

 

Mauritius – International Rankings

Index Global Rank (Mauritius) Africa Rank (Mauritius)
Environmental Performance Index 2010 6 out of 163 countries 1st
2012 Heritage Foundation Index of Economic Freedom 8th out of 183 countries 1st
Fraser institute economic freedom 2011 9 out of 141 countries 1st
Forbes Survey of Best Countries for Business 2011 19 out of 134 countries 1st
World Bank  Ease of Doing Business 2012 23rd  out of 183 countries 1st
Economist Democracy Index 2010 Full Democracy

24th out of 167

1st
Global Enabling Trade Index 33 out of 125 countries 1st
Knowledge Economy Index 64 1st
Mo Ibrahim Index of African Governance 2011 1st
International Property Rights Index 2011 38 out of 129 2nd
Global Competitiveness Index 2011-2012 54 out of 142 countries 2nd
Africa Competitiveness Index 2011 2nd
Corruption Perceptions Index 2010 (Transparency International) 39 out of 178 2nd
ITU –United Nations Agency for Information and communications
ITU’s Digital Access Index
62nd out of 178 2nd
Outsourcing Readiness Index (Africa) 2009 2nd out of 15
Human Development Index 2011 77 out of 189 3rd
The A.T. Kearney Global Services Location Index, 2011 36 out of 50 countries 4th

 

Business and Investment opportunities

Mauritius is pursuing a multi-pronged development strategy based on a liberal and open investment policy in order to achieve sustainable growth in a fast globalizing world economy. The key elements of that strategy are:

  • Consolidation of traditional industries
  • Diversification of the industrial base
  • Development of emerging sectors
  • Harnessing the services industries of the future

Mauritius offers excellent business opportunities in the following industry sectors:

  • Agro-industries
  • Financial Services
  • Healthcare and Medical Travel
  • Hospitality and Property Development
  • Marina Development
  • Information Technology and Business Process Outsourcing
  • Knowledge
  • Logistics and Distribution Services
  • Manufacturing and Light Engineering
  • Renewable Energies and Environment
  • Seafood and Aquaculture
  • Creative Industries
  • Film-making

 

 

A Competitive Fiscal System

Mauritius offers a competitive tax jurisdiction and an investor friendly environment to encourage local and foreign companies to set up businesses on the island. The fiscal regime offers the  following incentives:

    • Harmonised corporate and income tax of 15%
    • Tax free dividend
    • No capital gains tax
    • 100% foreign ownership
    • Exemption from customs duty on equipment
    • Free repatriation of profits, dividends and capital
    • No minimum foreign capital required

Infrastructure

The Government of Mauritius is committed to endowing the island with a reliable and efficient infrastructure, comparable with the best available in developed countries. To this effect, it has already invested massively for the continual upgrading of the overall infrastructure, namely the international airport, the seaport of Port Louis, the road network and the ICT infrastructure amongst others.

 

Board of Investment (BOI) of Mauritius

The Board of Investment (BOI) is the national Investment Promotion Agency of the Republic of Mauritius. It falls under the aegis of the Ministry of Finance and Economic Development. As Mauritius opens to the world, transforming itself into a globally trustworthy competitive business platform, BOI has developed a whole range of personalised services to attract international investments and talents to the country.

BOI also aims at propelling inward and outward investment to new heights. With strong industry expertise and international exposure, the BOI team of multidisciplinary professionals is well-equipped to provide invaluable guidance for successful business launches and investment ventures in Mauritius. Over the years, BOI has developed a strong partnership with the private sector by constantly improving the business environment and the investment climate at large.

Headquartered in Port Louis,  BOI is part of the worldwide network through the country’s embassies and consulates in order to better service the needs of international investors.

BOI Services

The Board of Investment (BOI) is viewed both locally and internationally as a strategic partner for any investor wishing to benefit from the sound business environment in Mauritius.

The prestigious ‘Investment Promotion Agency of the Year Award’ was conferred to BOI at the Africa Investor Investment and Business Leader Awards 2010 in Washington. BOI also won the Top Prize for Policy Advocacy by the WAIPA (World Association of Investment Promotion Agencies) in 2008.

BOI’s range of services, provided free-of-charge, include inter alia:

1. Counseling on investment opportunities in Mauritius

2. Providing sector-specific and tailor-made information for the setting up of a business in Mauritius

3. Organizing customised meetings and visits

4. Identifying joint-venture partners

5. Providing guidance on the choice of site locations and production facilities

6. Assisting with occupation permits, licenses and clearances

 

BOI Contact details

 

10th Floor, One Cathedral Square Building,

16, Jules Koenig Street,

Port Louis

Republic of Mauritius

Tel. No.:  + 230 203 3800

Fax  No.: + 230 208 2924

Email: contact@investmauritius.com

Website: www.investmauritius.com