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INVESTOR’S GUIDE TO

Mauritius

PREFACE This book was prepared by COMESA Regional Investment Agency in cooperation with Economic Development Board of Mauritius. It was written to give the busy executive a quick overview of the investment climate, taxation, types of business organisation, and accounting practices in Mauritius. Making decisions about foreign operations is complex and requires an intimate knowledge of a country’s commercial climate. Companies doing business in Mauritius, or planning to do so, are advised to get current and detailed information from experienced professionals. This book reflects information current as of 2016/2017.

INVESTOR’S GUIDE TO MAURITIUSIn the preparation of this guide, every effort has been made to offer current, correct and clearly expressed information. However, the information in the text is intended to afford general guidelines only. This publication is distributed with the understanding that COMESA RIA is not responsible for the result of any actions taken on the basis of information in this publication, nor for any errors or omissions contained herein.

CONTENTS1 General Country Information 8

2 Legal and Judicial System 10

3 Economy 12

4 Licensing and Permits 18

5 Population/Demographics 20

6 Education 22

7 Infrastructure 24

8 Banking and Financial Services and Taxation 26

9 Taxation 30

10 Markets 32

11 Investment Opportunities 34

12 The Legal Framework for Investment 44

13 Contacts 48

7Investor’s Guide To Mauritius

8 Investor’s Guide To Mauritius

General Country Information1


Capital Port Louis

National Language English and French

Government Type Republic

President H.E. Paramasivum Pillay Vyapoory, Acting President

Prime Minister Hon. Pravind Kumar Jugnauth

Legislature National Assembly

Population 1,263,820

Currency Mauritian Rupee (MUR)

Total Area 2,040 square kilometres (787 square miles)

GDP USD 12.16 billion (2016)

GDP Growth 3.8% (2016)

Inflation 1% (2016)

Language English, French, Hindi, Urdu, Chinese


Legal and Judicial System2


Political stability, transparency, and the rule of law constitute the mainstay of Mauritius. The cardinal strengths of the island rest on the fact that parliamentary democracy is inspired by a hybrid legal system which encompasses the French Code Napoleon and the British law based on the common law. Mauritius benefits from a written Constitution based on the separation of powers separated among the Legislative, the Executive and the Judiciary based on the Westminsterial model with free and fair elections held every five years. The President of the Republic is elected by the National Assembly.

The Legal System: Combating Money Laundering and Financing of TerrorismMauritius is internationally trusted for its versatile mix of common and civil law. The highest appellate court is the British Privy Council. The proactivity of Mauritius to prevent any kind of illicit transaction was demonstrated in 2002 by the enactment of one of the world’s most stringent anti money laundering laws, as viewed by leading international bankers. Mauritius has enacted the Financial Intelligence and Anti-Money Laundering Act (FIAMLA), the Prevention of Terrorism Act (POTA) and the Prevention of Corruption Act (POCA) in recent years with respect to international standards for AML/CFT.

Mauritius International Arbitration Centre (MIAC)To serve the interests of the regional business community, Mauritius enacted the International Arbitration Act 2008 based on the UNCITRAL Model Law. It has also ratified the New York Convention. Mauritius currently has two arbitration centres within the country representing three International Arbitration Courts from UK, Australia, and China.

The Supreme Court of Mauritius

CompositionThe Supreme Court is composed of the Chief Justice, the Senior Puisne Judge, and such number of Puisne Judges as may be prescribed by Parliament. Presently, there are 17 Puisne Judges (Section 76(2) of the Mauritian Constitution).

AppointmentThe Chief Justice is appointed by the President after consultation with the Prime Minister, the Senior Puisne Judge by the President in accordance with the advice of Chief Justice and the Puisne Judges by the President acting in accordance with the advice of the Judicial and Legal Service Commission (Section 77 of the Constitution).

JurisdictionThe Supreme Court has unlimited jurisdiction to hear and determine any civil or criminal proceedings under any law other than a disciplinary law, and such jurisdiction and powers as may be conferred upon it by the Constitution or any other law (Section 76(1) of the Constitution). It is a superior court of record (Section 15 of the Courts Act). It is the principal court of original civil and criminal jurisdictions. It exercises general powers of supervision over all District, Intermediate, and Industrial Courts, and other special courts (Sections 34 and 38 of the Courts Act and Section 82 of the Constitution).

The Supreme Court is also a Court of Equity vested with powers, authority, and jurisdiction to administer justice and to do all acts for the due execution of such equitable jurisdiction in all cases where no legal remedy is provided by any enactment (Section 16 of the Courts Act).

Section 83 of the Constitution provides that the Supreme Court has original jurisdiction in the interpretation of the Constitution; and where a question as to the interpreta-tion of the Constitution arises in any Court established for Mauritius (other than the Court of Appeal, the Supreme Court, or a Court Martial), the Court is of the opinion that the question involved a substantial question of law, the Court shall refer the matter to the Supreme Court (Section 84 of the Constitution).

Disciplinary PowersThe Supreme Court has power and jurisdiction to hear and determine any complaint of a disciplinary nature in respect of the professional conduct of a law practitioner or ministerial officer, including a land surveyor.

Appellate JurisdictionThe Supreme Court has full power and jurisdiction to hear and determine all appeals, whether civil or criminal, made to the Court from:

• a judge in the exercise of his original jurisdiction;

• the Bankruptcy Division;

• the Master and Registrar;

• the Intermediate Court;

• the Industrial Court;

• a Magistrate;

• any other Court or body established under any other enactment (Section 69 of the Courts Act).


Economy3


General Economic Information Since independence in 1968, Mauritius has undergone a remarkable economic transformation from a low-income, agriculturally based economy to a diversified, upper middle-income economy with growing industrial, financial, and tourist sectors. Mauritius has achieved steady growth over the last several decades, resulting in more equitable income distribution, increased life expectancy, lowered infant mortality, and a much improved infrastructure.

Mauritius’ combination of political stability, strong institutional framework, low level of corruption, and favourable regulatory environment has helped lay the foundation for economic growth, while its open trade policies have been key in sustaining growth. The government functions as a parliamentary democracy, and the country has an efficient administration that is both technically competent and adaptive to changing global economic circumstances.

One of the main visions of the government is to position Mauritius as one of the easiest and simplest places to do business, and the government has focused very strongly on ease of doing business. Mauritius is ranked first in Africa in the Ease of Doing Business Index of the World Bank, which is a huge achievement for the country.

Moreover, Mauritius stands as a jurisdiction of excellence which has gained worldwide recognition for transparency, observance of best practices, and compliance with international norms. Mauritius continues to be amongst the most competitive, stable, and successful economies in Africa.

Mauritius has established itself as one of the leading economic reformers in Africa. The international rating agency, Moody’s Investors Service, has maintained its sovereign rating of “Baa1” (stable) for Mauritius, following its latest country assessment released in November 2015. Mauritius maintains its position and reputation as an easy place to do business, as gauged by its top spot amongst Sub-Saharan African economies and is ranked 25th worldwide on Overall Ease of Doing Business, according to the World Bank Group’s report in November 2017.

What further demarcates Mauritius from other African Countries is the availability of its vast sea territory. The Government Programme 2015 reflects the vision of the government to transform Mauritius into an ocean state by promoting the ocean economy as one of its main pillars of development.

The main areas on which the development of Mauritius will be centred to fundamentally transform its economy are:

• Firstly, a revamped and dynamic manufacturing base which will focus on the promotion of high-end, precision driven, and technology enabled manufacturing, and to use necessary support mechanisms that are already in place to attract more players in high precision engineering and food processing, amongst others.

• Secondly, the development of the ocean industry with the setting up of a National Ocean Council to drive and implement projects related to ocean economy, to transform Port Louis into a leading regional petroleum hub by leveraging on the 30,000 ships that pass by Mauritius annually providing them with bunkering and other related services; and the development of Port Louis as a modern port with state-of-the-art facilities will lead to the provision of a whole range of support services including freight and logistics, hence generating jobs.

• Thirdly, to revisit the services sector by embracing higher value-added services and activities. Here the financial services industry is likely to play a key role in achieving the second economic miracle. A new Ministry has been dedicated to Financial Services and Good Governance, to develop Mauritius into a vibrant and sophisticated International Financial Services centre. Mauritius will also focus on the development of capital markets to attract world class liquidity providers, international brokers, investment banks, and fund managers, and transform the island into a smart island, by embarking on mega projects involving smart cities, new cyber cities including techno parks, amongst others.

• Fourthly, the Africa strategy: with the main objective of positioning Mauritius as the regional platform for trade, investment, and services to do business in Africa, to sign MOU’s with several countries in Africa for the development of Special Economic Zones including Ghana, Senegal, and Madagascar and to work on the possibility of setting up of a regional airline company in Mauritius to connect Mauritius to mainland Africa.


Additional measures are being taken to stimulate both domestic and foreign direct investment with a view of achieving foremost socio-economic objectives, namely high economic growth and the creation of high-end jobs to improve the quality of life for all Mauritians and eliminate the pain of absolute poverty. In its recent budget of 2016-2017, several measures were announced where the main thrusts have an immediate bearing on entrepreneur-ship and SMEs, business facilitation, and institutional reforms. SME parks, matching grants and improved access to capital are expected to give a boost to the sector of small and medium businesses.

The development of sound infrastructure has also been given significant attention with the recognition of the importance of investing today in order to reap tomorrow. Accordingly, huge investments have been channelled to improve air and sea connectivity. There is the creation of the Air Corridor between Asia and Africa. The Asia-Africa Air Corridor is based on utilisation of the Mauritius (MRU) and Singapore (SIN) hubs to foster the following origin and destination traffic flows:

• Mauritius-Singapore and vice versa, i.e. point to point

• Asia-Mauritius and vice versa via Singapore hub

• Africa/Indian Ocean to Singapore via Mauritius hub with direct connections, and Singapore to Africa/Indian Ocean with night stop-over in Mauritius

• Asia-Africa/Indian Ocean two-centre holiday traffic

Lastly, the decongestion programme will be reinforced with the metro express and other road network developments.

Regarding business facilitation, the newly created entity the Economic Development Board (EDB) which regroups the Ex BOI, Ex EM, and Ex FSPA has been vested with additional powers. In the main, through the implementation of a Regulatory Sandbox Scheme (RSS), EDB will promote innovation through the prompt leveraging of the latest global trends. In a world characterized by technological breakthroughs and scientific advancement, the RSS will be a game changer, for it will position Mauritius as a prime platform to attract and test innovative start-ups while facilitating high value-added projects.

Gross Value Added at Basic Prices – Sectoral Real Growth Rates 2016-2017

Sector 2016 2017

Agriculture,forestry,andfishing +3.7 -0.2

Mining and quarrying +1.0 +1.6

Manufacturing +0.3 +1.2

Electricity, gas, steam, and air conditioning supply +4.2 +3.3

Water supply; sewerage, waste management, and remediation activities +4.2 +3.3

Construction 0.0 +7.5

Wholesale and retail trade; repair of motor vehicles and motorcycles +3.0 +3.1

Transportation and storage +3.9 +3.7

Accommodation and food service activities +9.2 +5.6

Information and communication +5.9 +5.5

Financial and insurance activities +5.7 +5.5

Real estate activities +4.1 +3.2

Professional,scientific,andtechnicalactivities +5.7 +5.3

Administrative and support service activities +5.9 +5.8

Public administration and defence; compulsory social security +2.7 +2.4

Education +0.8 +1.9


Human health and social work activities +2.2 +5.1

Arts, entertainment, and recreation +4.7 +4.7

Other service activities +3.1 +3.1

Export oriented enterprises -5.1 -0.3

1. Seafood +3.6 +1.1

2. Freeport +2.9 +2.9

3. Tourism +11.5 +6.0

4. ICT +5.4 +4.4

5. Global business +4.0 +4.0

TradeProfileMauritius has a liberal economic and trade policy. The country is a member of the WTO, as well as many other regional economic groups (COMESA, SADC, and EU). Mauritius aims to transform the island into an open and globally competitive economy, and to fully integrate it into the world trade system through its trade policies. Comparatively, customs duties are low and the island does not have any trade barriers.

Based on recent past trends and information from various sources, total exports for the year 2018 is forecasted at around USD 2,471 M and imports at USD 5,588 M. Trade deficit for 2018 is therefore expected to be around USD 3,118 M.

The country’s main trade partners are the European Union (led by France and the United Kingdom), China, India, South Africa, and the United States.

Mauritius exports clothing, textiles, sugar, cut flowers, molasses, fish, and radio transmission equipment. Sugarcane occupies 90% of the country’s cultivated land and represents 15% of its exports. The export of services has been on the rise. As far as services are concerned, the country has a positive trade balance.

Summary of External Merchandise Trade 2016-2017

2016 (USD Millions) 2017 (USD Millions)

Total Exports 2484 2392

Total Imports 4865 5319

Total Value of Trade 7349 7710

Balance of Visible Trade -2381 -2927

Foreign Direct InvestmentAccording to the latest statistics published by the Bank of Mauritius, FDI inflows into the Mauritian economy for the period of January to December 2016 witnessed an increase of 41% as compared to the previous year. FDI inflows to the tune of USD 397 M have been recorded for the four quarters of 2016 as compared to USD 283 M in 2015.

Real estate and financial services remain the most attractive sectors and were the main recipients of FDI. Real Estate activities recorded FDI to the tune of USD 289 M of which IRS/RES/IHS accounted for USD 230 M. Direct investment flows of USD 61.2 M were recorded in the financial services sector, while the manufacturing sector registered USD 14.9 M.


There are clear signs of an upswing in FDI from developing countries. FDI from developing countries accounted for USD 188 M as compared to USD 97.3 M in 2015.

France remains the main source of FDI for the country with a contribution of USD 131 M. In addition, an influx of USD 70 M originated from China, representing 17.9% of the total FDI, while South Africa channeled USD 57 M into the Mauritian economy.

Outward investment amounted to USD 52.4 M in 2016 and they were mostly oriented towards the manufacturing sector (USD 23.7 M) and the financial sector (USD 2.01 M). Direct investment to Reunion Island totaled USD 20 M, while those channeled to Madagascar amounted to USD 1.98 M. Investment abroad was mainly geared towards developing countries and Africa represents the biggest recipient of FDI to the tune of USD 26 M.

Gross Direct Investment Flows in Mauritius 2015-2016

Region/Economy 2015 2016

Total World 9,677 13,648

France 3,555 4496

South Africa 1411 1967

China 423 2443

UAE 152 1022

Gross Direct Investment Flows Abroad 2015-2016

Region/Economy 2015 2016

Total World 2410 1842

Reunion 38 686

South Africa 1411 1967



Licensing and Permits4


Mauritius e-Licensing ProjectOne of the government’s most important objectives is to improve the ease of doing business and pursue reforms relating to the investment climate by reviewing the current licensing framework. As part of its continuous reform agenda, the government has embarked on a transformational e-government initiative, the Mauritius e-Licensing Project.

The objective of the project is, inter alia, to set up a national e-Licensing platform which will be a single portal for all business licences, permits, clearances, certificates, or any other type of authorisation required for starting and operating a business.

The platform will also be a central repository of all business licences and permits. Besides, interaction between public sector agencies for sharing of licens-ing-related information will be improved substantially. This will allow information to flow seamlessly across public sector agencies, and improve transparency and good governance. In addition, the platform will further provide transparent and rule-based access to licensing procedures; allowing online submissions and the processing and approval of applications, with a built-in audit trail and associated electronic payment mechanism.

In January 2017, the Minister of Finance and Economic Development signed a financing agreement of EUR 7 M with the European Union to implement the project. The Economic Development Board has been mandated to spearhead its implementation.

The platform is currently being developed by the supplier and the first phase is expected to be live by August 2018.

InfoHighwayThe Ministry of Technology, Communication and Innovation (MTCI) is making operational the InfoHighway, a government-owned infrastructure which will enable the sharing of data amongst agencies. InfoHighway will result in effective, efficient, modern, and improved public administration as it will provide the technology and the capabilities on a scalable platform to integrate and consolidate the supply of information to authorized users in a secured and efficient way.

The modus operandi of the system is a controlled and secured internet-based technical and organization-al infrastructure with reduced human intervention in data handling, whereby public data is published by an

authorized agency (Publisher) on the InfoHighway for use or subscription by other agencies (Subscriber).

Such an endeavour will act as a catalyst in improving ease of doing business and replace cumbersome systems. Agencies will be able to access relevant information via the highway in order to fulfil their respective functions much faster and more efficiently. As more agencies join the highway, business communities and the population at large will undoubtedly find it more user-friendly to deal with public agencies. As at date, there are 74 connections amongst different public sector agencies.

The InfoHighway was awarded the WSIS Prizes 2018 Champion at the World Summit on Information Society (WSIS) which operates under the aegis of the International Telecommunication Union (ITU). The WSIS Prize is a unique recognition for excellence in the imple-mentation of ICT projects that are helping advance the UN Sustainable Development Goals.

For more information on the exact steps and documents needed to start or run a business, cost of doing business, or exiting procedures,please visit http://www.investmauritius.com/getting-started.aspx#C1.


Population/Demographics5


2011 2015 2016

Total Mid-Year Resident Population 1,252.4 1,262.6 1,263.5

Male 619.6 624.8 625.2

Female 632.8 637.8 638.3

Age composition (%) 2011 2015 2016

under 15 years 21.7 19.6 19.0

15-59 years 65.8 65.6 65.6

60-64 years 4.6 5.4 5.4

65 years and over 7.9 9.4 10.0

Median age 33.4 35.3 35.7

Dependency ratio 420.4 408.6 408.6

Population density (per km²) 636 638 639

Life Expectancy at Birth

2011 2015 2016

Male 70.4 71.2 71.3

Female 77.5 77.8 77.9

Vital Statistics

2011 2015 2016

Live births 14,701 12,738 13,082

Deaths 9,170 9,747 10,174

Marriages 10,499 9,709 10,042

Divorces 1,788 2,161 1,910


Education 6


In line with its objective of having an innovation-driven economy, the Government of Mauritius is aiming at positioning Mauritius as the leading education hub for the region. Over the years, Mauritius has certainly consolidated its reputation as a reliable and trusted provider of quality education and the island is on the right track to transform itself into a regional education hub for higher education.

To remain globally competitive, Mauritius is compelled to further diversify its economy base through the development of new sectors of growth and move towards a knowledge-based economy through high level of education, research, and innovation. Therefore, investment is being channelled into the creation of new university campuses and state-of-the-art infrastructure with a sharp focus on quality education as well as a strong anchor in research.

The knowledge sector has been experiencing an expansion in the number of tertiary education providers and the island has presently attracted prestigious international higher educational players from Europe, America and Australia such as ESSEC Business School, ESCP Europe, Ecole Centrale de Nantes, Middlesex University, Ecole Nationale Supérieure d’Architecture de Nantes, Imperial College London, SUPINFO, Glasgow Caledonian University, Utah State University, and Vatel-International Hotel Management School, amongst others.

The knowledge sector is consequently fast developing with the participation of increasing numbers of international students. Since 2007, the number of international students has increased from 528 to 2,900 in December 2017, and the main source countries are India, Nigeria, South Africa, Madagascar, France, Uganda, Kenya, Tanzania, and Zimbabwe. In terms of disciplines, students are mainly enrolled in management, information technology, computer sciences, law, hospitality management, and medical programmes.

Key Facts and Figures

2017

Pre-primary Schools 883

Primary Schools 318

Secondary Schools 176

Tertiary Educational Institutions (Public & Private) 56

Total Government Expenditure on Education as a % of Total Government Expenditure 12

Source: Statistics Mauritius

Enrolment Male Female Total

Pre-primary education (2017) 13,921 13,355 27,276

Primary education (2017) 46,971 46,018 92,989

Secondary education (2017) 52,807 57,775 110,582

Tertiary education - Public funded (2016) 8,716 12,250 20,966

Tertiary education – Private funded (2016) 5,730 6,573 12,303

Literacy rate (2011) 92.3 87.3 89.8

Sources: Statistics Mauritius and Tertiary Education Commission


Infrastructure7


• The government is planning massive investment in infrastructure for years to come. The Metro Express project is under implementation for an investment value of USD 524.6 M.

• Expansion of the transport infrastructure and road network will entail investments to the tune of USD 186.5 M with the construction of the Jumbo-Phoenix Roundabout, the A1M1 Bridge, a new road which will connect La Vigie and La Brasserie, and a second fly-over to connect directly the M1 to the Terre Rouge Verdun motorway.

• The water sector will see some USD 128.2 M of investment in several projects for improving water supply, including USD 67 M for the replacement of 264 km of water pipes, construction of the Bagatelle water treatment plant, drilling of 13 boreholes, new storage and pumping stations, and construction of the Riviere des Anguilles Dam.

• An investment amount of USD 111 M has been earmarked for waste water management facilities over the next three years.

• The government is also providing some USD 53.9 M for short to medium projects USD 32.1 M including construction of drains, bridges, and road widening. Investment in excess of will address long outstanding minor infrastructural works including resurfacing of existing internal roads, construction of drains in local areas, energy efficient street lighting, upgrading of existing and setting up of new children playgrounds, recreational parks such as green spaces, basic sports infrastructure, and extension and upgrading of infrastructure in public primary and secondary schools.

• Construction of a new control tower at the international airport and a new Cargo & Freeport Zone aims at offering appropriate infrastructure to boost the Freeport & Cargo activity.

• The following projects are underway at their port with investments to the tune of USD 145.7 M:

a. A cruise terminal at Port Louis harbour

b. Extension of the MCT quay by an additional 240 metres

c. Expansion of the container stacking yard by about 7.5 hectares

d. Strengthening of the existing 560 metres long berth

e. Dredging works to deepen the navigational channel to 16.5 metres together with the land reclamation works at Fort George and Fort William


Banking and Financial Services8


The Financial Services sector contributed 12.1% to the GDP in 2017. As a key contributor to the economy, the financial services sector has generated high value-added employment as well as contributed to government revenues and foreign exchange earnings. On the employment front, the Financial Services sector has generated 15,000 high skills jobs in four main segments, namely banking, insurance, global business, and capital markets. Mauritius offers a complete ecosystem to potential investors driven by world class banking, insurance, legal and accounting institutions, and an innovative listing and capital raising platform.

The government is committed to transforming Mauritius into an International Financial Centre based on substance. Several policies have been formulated and implemented during the last two decades to equip the country with the necessary regulatory framework, the institutional set up, and the infrastruc-tural requirements to promote the development of a dynamic and diversified financial services sector.

In fact, Mauritius is regarded as a highly transparent and strong jurisdiction. This is evident from the OECD’s Global Forum’s latest announcement, rating Mauritius as a “compliant” jurisdiction under a new and enhanced peer review process aimed at assessing compliance with international standards for the exchange of information on request between tax authorities.

The Financial Services Commission (FSC), established in 2001, oversees the non-bank financial services sector in Mauritius. The FSC as a unified regulator focuses on a risk-based supervisory approach formulated in line with international standards and best practices.

Banking SectorThe Mauritian banking sector, through its reliability and resilience, has been instrumental in supporting the real sectors of the Mauritian economy for nearly two centuries, and in shaping the development of the financial services sector as an industry in its own right over the last three decades. It currently holds assets above USD 30bn. The Mauritian banking sector encompasses 21 strong domestic banks and leading international banks regulated by the Bank of Mauritius (BoM). Of the 21 banks, two banks carry on exclusively private banking business and one bank carries on exclusively Islamic banking business. The banking sector in Mauritius is very resilient, boasting a capital adequacy ratio in excess of 12% requested by international Basel standards.

The banking industry is characterised by the wide range of services provided. Besides traditional banking facilities, banks offer card-based payment services, such as credit and debit cards, internet banking, and phone banking facilities. Specialised services such as fund administration, custodial services, trusteeship, structured lending, structured trade finance, international portfolio management, investment banking, private client activities, treasury and specialised finance are also offered by banks. The international banks offer a wide range of global banking and financial services to corporate, institutional, and private clients. Some of the biggest and most reputable international banks are present in Mauritius and actively carry out international cross-border activities.

Capital Markets in MauritiusThe Stock Exchange of Mauritius (SEM) is an attractive multi-asset class capital raising and trading platform. It is noteworthy that as at 29th September 2017, market capitalisation on the SEM reached USD 10.6bn with around 169 listed securities. SEM allows issuers to list a wide spectrum of financial instruments and raise capital through shares, bonds, funds, depositary receipts, convertible instruments, and exchange traded funds which can be used by investors.

A legal framework regulating the capital markets, the Securities Act, came into force in September 2005 (replacing the Stock Exchange Act 1998). The Securities Act 2005 is based on a modern approach to regulation whilst fostering market developments. It is in line with the objectives and principles of IOSCO. The object of Securities Act 2005 is to establish a framework for the regulation of securities markets, market participants, and self-regulatory organisations, the offering and trading of securities and other related matters, to ensure fair, efficient, and transparent securities markets and to strike an appropriate balance between the protection of the investor and the interests of the securities market.

The FSC is an ordinary member of IOSCO since 1994 and has been an active member. It is a signatory of the IOSCO MoU since 16th May 2012.


The Funds Industry

Global FundsFunds in Mauritius may be structured inter alia as companies, limited partnerships, or trust and can either be open-ended funds or closed-end funds. The Mauritius International Financial Centre (IFC) proactively supports the evolving needs of the fund industry. The funds domiciled in the Mauritius IFC are eligible to all the benefits which accrue to Global Business Corporations. Fund Managers may additionally benefit from tax holidays subject to stringent criteria being met. The regulatory landscape facilitates the provision of fund management services and fund administration services to global funds.

Global funds domiciled in Mauritius may also take advantage of the flexible listing rules of the Stock Exchange of Mauritius to list on one of the leading platforms in Africa, member of a number of international bodies, including the World Federation of Exchanges, South Asian Federation of Exchanges, African Securities Exchanges Association, and Committee of SADC Stock Exchanges. Such listings would attract investors’ value and demonstrate substance, notably to institutional investors and development finance institutions.

As per FSC statistics, there were a total of 954 global funds (2017), with assets under management of over USD 85 bn.

The Private Pensions SectorThe pension regime in Mauritius is underpinned by the following categories: the Basic Retirement Pensions (BRP); occupational compulsory pensions (National Pension Fund and National Savings Fund); and voluntary pensions (private pension plans, occupational and non-occupational). The private pension sector in Mauritius falls under the purview of the FSC.

According to data available at the FSC Mauritius, as at 31st October 2017, there are 70 licensed pension schemes and five licensed external pension schemes that operate in the private pensions sector. In 2015, the total assets of private pension schemes amounted to USD 1.045 bn. The investment asset allocations of these schemes compose of, inter alia, government debt securities, cash and cash equivalents, fixed income securities, listed and unlisted equities, and property.

Additionally, under the act, the FSC may authorise foreign pension schemes to operate in Mauritius provided they are fully compliant with their home country pension regulator’s prudential requirements and meet the relevant criteria under the Private Pension Schemes Act, which is the prevailing law for the regulation and supervision of private pension schemes. The foreign pension schemes provide pension benefits to Mauritian Residents and to residents outside Mauritius.

The Insurance SectorThe insurance industry in Mauritius is a relatively progressive and stable sector which is regulated and supervised by the FSC under the Insurance Act 2005 and the Financial Services Act 2007.

During the period 2016/17, there were eight licensed long-term insurers. During 2016, there were 15 insurers licensed to conduct general insurance business. The value of assets decreased by four per cent in 2016 to reach USD 464 M compared to USD 486 M in 2015. Capital and reserves remained stable at USD 220 M in 2016 as compared to USD 222 M in 2015.

Captive Insurance SectorThe Captive Insurance (Pure Captive Insurance Business) Rules 2016, issued on 15th April 2016, aims to strengthen the framework for captive insurance business as introduced by the Captive Insurance Act 2015. Mauritius is presently working new rules to allow the licensing of Third Party Captive Insurers.

Holders of a Captive Insurance Licence are exempted from tax for a period of ten years from the coming into operation of the Captive Insurance Act (proclaimed on 29th January 2016). The FSC is currently working to extend the captive insurer licence to include third party risks.

New Measures In line with the government’s strategy to bring more substance into the activities of the Mauritius IFC, a series of new financial products were introduced. Products such as the Global Headquarters Administration Licence, Global Treasury Administration Licence, Overseas Family Office Licence, and the Investment Banking Licence are aimed


to attract multinational companies, international insurance operators, private banks, and high net worth individuals to their jurisdiction.

The Global Legal Advisory Services Licence caters to international law firms which would provide legal advice to clients engaged in high value and complex cross-border transactions. The Limited Liability Partnerships (LLP Act) was introduced in 2016 to add limited liability partnerships to the range of legal structures available in the Mauritian jurisdiction (e.g. company, limited partnerships, and foundations). These new product offerings have already shown much interest amongst investors and have also successfully helped to graduate the Mauritius IFC towards sophistication and higher added value.

Other measures in the pipeline involve the establishment of a Commodities and Derivatives Exchange. This will allow for multi-derivatives and commodities trading. This platform will further enhance Mauritius’ position as a wealth and asset management destination.

Following the 2017/2018 budget, new measures were introduced to foster growth within the financial services sector. In particular, the government announced the elaboration of a blueprint to address the way forward for the global business sector over the next 10 years. On the innovation front, the government also announced a series of measures for the fintech segment, including fintech rules to be developed by the FSC and the setting up of a Fintech Association in collaboration with leading International Institutions.

Financial Sector Contribution to GDP

2010 2011 2012 2013 2014 2015 2016 2017

Financial and insurance activities

10.1 10.2 10.3 10.2 11.9 12.0 12.1 12.1

Monetary intermediation 6.0 6.0 6.2 5.9 6.7 6.7 6.9 7.0

Financial leasing and other credit granting

0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7

Insurance, reinsurance and pension

2.9 3.0 3.0 3.1 3.2 3.2 3.2 3.1

Other 0.6 0.6 0.5 0.6 1.3 1.3 1.3 1.3

Source: Statistics Mauritius - National Accounts


Taxation9


Mauritius applies a basic corporate income tax rate of 15%. All income accruing in or derived from Mauritius by a resident company is chargeable to corporation tax. Non-residents are subject to tax on income accruing in or derived from Mauritius. A resident of Mauritius is taxable on worldwide income, except an individual whose foreign source income is taxable only if it is remitted to Mauritius. A resident company is chargeable to tax in respect of its worldwide income, whether its foreign source income is remitted or not to Mauritius. A non-resident is taxable in respect of the Mauritius-source income.

Income that is Taxable Includes:

• emoluments including fees, allowances etc. in money or money’s worth;

• business profits, including professional income;

• rent, royalty, premium, or other income derived from property;

• dividends, interest, charges, annuity;

• basic retirement pension;

• any other income.


Markets10


Mauritius has fostered close ties with several countries across the continent in the areas of trade and investment.

Mauritius ISO remains an important regional player through its membership in regional trading blocs and associations including the SADC, COMESA, the Indian Ocean Commission, and Indian Ocean Rim Association.

A number of regional institutions that promote regional integration such as the Regional Multi-disciplinary Centre of Excellence (RMCE), AFRITAC, the IMF Africa Training Institute, and the COMESA Fund are based in Mauritius.

Cross-Border InvestmentThrough its network of bilateral agreements with many countries, Mauritius remains an ideal choice for its competi-tiveness and risk mitigation relating to investment both in Africa and outside Africa.

Bilateral Agreements

• 43 agreements pertaining to double taxation avoidance (DTAAs)

• 44 agreements relating to the promotion and protection of investment (IPPAs)

• 41 Memorandum of Understanding (MoUs)

AgreementsTotal Africa

Signed Signed Ratified

DTAA 43 21 21

IPPA 44 23 9

MoU 41 31

International Relations and Economic Cooperation

US:

• Africa Growth & Opportunity Act (AGOA)

Europe:

• EPA with the European Union

• FTA with Turkey

Africa:

• SADC

• COMESA

• Tripartite Agreement

Asia & Middle-East:

• CECPA with India

• FTA with China

• PTA with Pakistan


Investment Opportunities 11


The Financial Services Industry of MauritiusOver the last two decades, the financial services sector of Mauritius has developed into one of the main pillars of the economy. Strategically located in the Indian Ocean at the crossroad of international investments, Mauritius has forged a strong reputation as a premier International Financial Centre (IFC), with a growth rate exceeding 5% over the last four years and 10.3% contribution to the Gross Domestic Product (GDP). Over 15,000 highly skilled professionals are directly employed in the financial services industry. Prominent local and international players currently operate in the industry, offering an extensive suite of products and services, and first class personalised solutions.

Today, Mauritius is internationally recognised as a trusted investment centre for cross-border investments with a proven track record. The island remains committed to tax information exchange, transparency and adherence to best practices as set by leading institutions including the OECD, IMF, and other standards-setting bodies. This is further confirmed by the recognition of Mauritius by the OECD Peer Review Group as a largely compliant jurisdiction, as well as its signature to the FATCA.

The financial services sector in Mauritius is regulated by two bodies who have adopted the best international practices in order to prevent misuse of their jurisdiction – each with specific statutory objectives:

• The Bank of Mauritius (BOM) – responsible for the regulation of banking services

• The Financial Services Commission (FSC) – responsible for the regulation of non-banking financial institutions and global business

Investment opportunities are present in the various segments of the industry:a. Global Business

b. Banking

c. Insurance, Re-Insurance and Private Pension

d. Capital Markets

e. Auxiliary Services

a. Global Business As the leading IFC in the region, Mauritius is increasingly being used by international firms to establish their regional headquarters (RHQ) for Pan-African investments. Indian and Chinese companies investing into Africa can benefit from using Mauritius to structure their trade and investment activities.

The main benefits for setting up regional headquarters in Mauritius are:• Wide network of Double Taxation Agreements (47 signed and ratified) and Investment Protection and Promotion

Agreements (27 in force and 17 ratified)

• Tax incentives: Global Business Category 1 (GBC 1) Structures local income tax liability is limited to 3% on net income and expatriate staffs subject to a maximum of 15% income tax.

• Under the Business Facilitation Act, an RHQ may start its activities and expatriate staff can obtain occupation and residence permits within 3 working days.

• Sound regulatory framework

• Social and political stability

• Bilingual workforce

• Proximity to Africa

OpportunitiesA corporation holding a ‘Global Headquarters Administration’ licence, and providing at least three of the services listed below to three of its related corporations, shall accordingly benefit from a ‘Global Business’ licence:• Administration and general management

• Business planning, development, and coordination

• Economic and investment research and analysis


• Services relating to international corporate headquarters in Mauritius

• Any other global headquarters administration services as may be specified in the Financial Services Commission (FSC) Rules.

b. BankingMauritius offers a well-capitalized sophisticated banking sector comprising of local and international banks which are actively servicing a wide range of retail, corporate, institutional, and private client base. Services offered include traditional retail and corporate banking services, international remittance, internet banking, trade and loan finance, global business, investment banking, custodian services, treasury services, and ecommerce amongst others. Major international names operating in Mauritius include HSBC, Barclays, and Standard Chartered.

Opportunities exist in setting up:

• Global Business Banking

• Private Banking

• Investment Banking

• Islamic Banking

c. Insurance, Reinsurance, and Private PensionMauritius boasts a well-developed insurance sector offering life, general, reinsurance, captive business, and private pension.

Private Pension Schemes are governed by the Private Pensions Schemes Act 2012 and impacts three categories of schemes namely:

• Pension scheme regulated in Mauritius and providing benefits to beneficiaries in Mauritius

• External pension schemes usually holding a Global Business Category 1 Licence regulated/administered in Mauritius and targeting individuals outside of Mauritius

• Foreign pension schemes regulated in a foreign jurisdiction and allowed to operate in Mauritius to cover Mauritian-based members/beneficiaries.

d. Capital MarketsMauritius stands as one of the largest and most innovative capital raising markets of the African landscape. There are currently two securities exchanges licensed by the Financial Services Commission, namely the Stock Exchange of Mauritius Ltd (SEM) and the Bourse Africa Ltd (BAL), which complement each other to position Mauritius as one of the most powerful val-ue-creation platforms of the region.

The SEM offers shares, debentures, bonds, convertible instruments, depositary receipts, and exchange traded funds, amongst others. It facilitates international cap-

ital-raising through multi-currency listing, trading, and settlement platforms in USD, EUR, and GBP. Having adopted an internationalisation strategy, the SEM has quickly positioned itself as a capital-raising hub for both regional and global players.

Bourse Africa Ltd is the first international multi-asset class exchange from Mauritius that offers trading on commodity derivatives, African and global currency derivatives, African equity index derivatives, and CFDs on commodities and currencies.

e. Auxiliary ServicesMauritius offers a host of services that completes its financial eco-system, including:

• Corporate services providers

• Accountancy, tax, and auditing services

• International legal services

• Investment advisory

• Asset management

• Brokerage houses

• Consultancy

Agro-IndustryThe agro-industry offers investment opportunities in the following areas:• Seeds production

• Hydroponic and bio farming

• Dairy farming

• Precision (technology-based) farming

• Agricultural biotechnology

• Agro-processing

The government has been actively encouraging agricultural and agro-industrial development to diversify the industry. Today, investments in this sector are oriented towards technology-driven and high-value activities.

Guidelines for Application of Registration CertificateforFoodProcessingThe Food Processing registration certificate has been introduced to promote regional and global value chain through the cultivation and importation of agricultural products to be used as raw materials for processing into intermediate and finished products geared for export.

Qualifying Criteria

• A company operating a food processing plant for food processing activities and for the manufacture of products from agricultural and medicinal plants and herbs either as intermediate goods or finished products will be eligible to benefit from this scheme provided that the company has started its operations on or after 8th June 2017.


• Goods are required to be produced by a process involving a value-addition of not less than 20% of the ex-factory costs of the finished product.

• Goods intended for export shall satisfy the rules of origin of preferential markets.

• The company must ensure that at least 50 per cent of the final products manufactured by the company are exported, after two years as from the date from which the company starts its operation.

IncentivesQualified applicants will benefit from the following incentives:• Income derived by a holder of a registration

certificate shall be exempt for a period of eight income years as from the income year in which the company starts its operations

• Exemption from payment of Registration Duty and Land Transfer Tax for the purchase of immovable property

• Exemption from payment of value added tax on equipment and machinery

Hospitality & Property DevelopmentMauritius has successfully positioned itself on the international scene as a renowned up-market tourist destination.

One of the measures announced in the 2015/2016 budget was the restructuring of the Integrated Resort Scheme (IRS) and Real Estate Scheme (RES). As a result, the Investment Promotion Act has been amended through the Finance (Miscellaneous Provisions) Act 2015. The Investment Promotion Act makes provision for the introduction of a Smart City Scheme (SCS) and a Property Development Scheme (PDS), which are administered by the BOI under a new set of regulations.

The Smart City Scheme (SCS) is an ambitious economic development programme to consolidate Mauritius into a full-fledged international business and financial hub with ideal conditions for working, living, and spurring investments. The smart city project aims towards stimulating innovative scientific and technological activities, providing technology-driven facilities to the business community, and creating vibrant cities built around the work-live-play lifestyle. The Government of Mauritius has set up the Smart City Scheme to provide an enabling framework and a package of attractive fiscal and non-fiscal incentives to investors for the development of smart cities across the island.

A smart city project, other than a technopole project, must include:• Business facilities, with a mandatory innovation

cluster

• Residential properties on the condition that the land area planned for the construction of residential properties does not exceed 50 per cent of the total land area

• Affordable housing units for middle-income earners

• Civic centres and leisure amenities

• High-quality public spaces that help promote social interaction and a sense of community, including but not limited to gardens, open plazas, cycle routes, and pedestrian precincts

• Day-to-day management services

• Use of information and communication technology to sense, analyse, and integrate the key information to provide intelligent urban management and services

• The use technology products or practices resulting in substantial operational cost savings through reduced energy consumption and utility costs

• Measures which to the extent possible:

О Generate their own energy requirements through eco-friendly mechanisms such as solar plants and wind farms

О Produce their own water needs; and

О are autonomous in their waste management systems.

• Social programmes and obligations

A company investing in the development of a smart city and/or its components is exempted from payment of:• Income tax for a period of eight years from the

issue of the SCS certificate provided that the income is derived from an activity pertaining to the development and sale, rental, or management of immovable property other than an activity in respect of the supply of goods and services.

• Value Added Tax paid on capital goods (building, structure, plant, machinery, or equipment).

• Customs duty on import or purchase of any dutiable goods, other than furniture, to be used in infrastruc-ture works and construction of building within the scheme

• Land Transfer Tax and Registration Duty on transfer of land to a SPV provided that the transferor holds shares in the SPV equivalent to at least the value of the land transferred

• Land Conversion Tax in respect of the land area earmarked for the development of non-residen-tial components (office and business parks, ICT and innovation clusters, touristic, leisure, and entertainment facilities including hotels and golf courses, renewable energy, and green initiatives)

• Morcellement Tax for the subdivision of land

Other tax incentives include:• First-time Mauritian buyers and buyers under the

Mauritian Diaspora Scheme acquiring a residential unit will be exempt from registration duty

• Full recovery of VAT in terms of input tax allowable in terms of capital goods (building structure), plant, machinery, and equipment


• Accelerated annual allowance granted at a rate of 50% of the costs in respect of capital expenditure incurred by any company operating within the Smart City Scheme on energy-efficient equipment and green technology

The Property Development Scheme (PDS) attracts investment from abroad by allowing non-citizens to acquire residential properties under the scheme. The PDS which has replaced the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES) allows the development of a mix of residences for sale to non-citizens, citizens, and members of the Mauritian Diaspora.

Letters of approval or certificates issued to companies to develop an IRS or RES project will continue to remain in force. Non-citizens acquiring immovable property under IRS or RES, for more than USD 500,000 or its equivalent, will still be eligible to apply for a residence permit.

BOI shall however continue to consider applications made under the provisions of the Invest Hotel Scheme (IHS).

The Property Development Scheme (PDS) attracts investment from abroad by allowing non-citizens to acquire residential properties under the scheme. The PDS which has replaced the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES) allows the development of a mix of residences for sale to non-citizens, citizens, and members of the Mauritian Diaspora.

Letters of approval or certificates issued to companies to develop an IRS or RES project will continue to remain in force. Non-citizens acquiring immovable property under IRS or RES, for more than USD 500,000 or its equivalent, will still be eligible to apply for a residence permit.

BOI shall however continue to consider applications made under the provisions of the Invest Hotel Scheme (IHS).

ICT-BPOThe ICT-BPO sector has grown from a nascent industry into one of the country’s leading sources of employment and major contributors to GDP. The industry has confirmed its ability to accelerate both social cohesion and economic development, eventually leading to a higher standard of living. Foreign direct investments have played a key role in this context, with a healthy mix of large multinationals and local players operating in Mauritius, providing employment to over 19,000 persons in the industry. Global players such as Accenture, Ceridian, Microsoft, Huawei, Orange Business Services, Pactera, and Infosys amongst others have established their operations in Mauritius.

The sector has developed distinctive strengths in Telecoms, BFSI, and IT Application Development, as well as maintenance support. Business opportunities exist in the following segments:

• BPO Voice: call centres/contact centres, technical centres

• BPO Non-Voice: back office, payroll, finance and accounting outsourcing, legal process outsourcing, amongst others

• Information Technology Outsourcing: software development, mobile apps development, web development, ecommerce, multimedia

• IT Services: data centres, disaster recovery, training, consultancy

• Telecommunication

• ICT Trade: retail and wholesale

In view of spurring growth in the Mauritian ICT-BPO industry, the government will concentrate efforts on developing new value-added and high-end activities, thus spearheading innovation. R&D will inevitably emerge as a major component of the economy in order to sustain innovation. Mauritius has crafted an enabling ecosystem for ICT-BPO companies to develop. The country offers the following key attributes for ICT and BPO activities:• Proven test bed for new technologies

• Pool of multilingual, educated, and adaptable IT professionals

• Excellent collaborative business environment

• Competitive cost to quality proposition

• Reliable and redundant international connectivity with two international submarine networks

• Innovative training incentives offered by the government

Besides serving as a primary bilingual location for customer-centric services and a compelling alternative for higher value works, Mauritius is also being increasingly leveraged as the ideal platform for the delivery of business services for Africa.


ManufacturingMauritius offers a number of benefits to international manufacturing companies to set up production units locally, including preferential market access to the USA through the AGOA, the EU through the partial EPA, and Africa through SADC and COMESA memberships. The manufacturing sector of Mauritius has evolved into a technology intensive sector and offers investment opportunities in:

• Medical Devices Mauritius is the seat of the manufacturing units of main European companies in the area of medical devices. There is room for other companies which want to engage in the manufacturing of medical supplies, including surgical and non-surgical equipment.

• High-End Jewellery, Watch-Making and Diamonds These niche segments represent on average an annual export value of around USD 150 m. Activities and opportunities in these segments include the processing of pearls, precious and semi-precious stones, watch-making activities, and diamond processing.

• Precision Engineering Companies present in Mauritius are already operating in the area of producing and assembling small components for electronics, measuring equipment, and instrumentation. Investment opportunities include the integration of existing value chains or manufacturing of high-accuracy components and systems, ultra-precision machining, as well as tooling.

• Technical Textiles Opportunities in the technical textile sector remain unexplored in Mauritius. Investors may avail themselves of opportunities in the production of technical textiles for the aerospace, medical, construction, military, agricultural, or automotive industries.

• Food Processing The food processing industry is represented across several segments, including the processing of products like fish, meat, milk, crops, rum, and bottled water. Opportunities to further develop this segment include the graduation towards niche foods such as confectionary and high-end refined spirits.

Attractiveness of Mauritius as a Manufacturing BaseMauritius offers a number of benefits to international manufacturing companies to set up production units locally. These benefits include:

• Preferential market access to the USA through the AGOA, the EU through the partial EPA, and Africa through SADC and COMESA memberships

• Competitive factor costs

• Modern infrastructure for setting up factories

• Modern free port and logistics facilities

• Bilateral agreements for free and preferential trade with Turkey and Pakistan, respectively

• Sea and air connectivity through major shipping lines and airlines, respectively

• Highly skilled, adaptable, and bilingual work force

• Streamlined procedures for the recruitment of expatriates and foreign labour

• To give a further impetus to the manufacturing sector, the government has introduced a measure allowing manufacturing factories to set up in the free port for the production of goods aimed primarily at African markets.

FreeportThe Mauritius Freeport provides modern integrated marketing, distribution, logistics, and value-added platforms that offer a wide range of products in terms of its facilities for intra- and extra- regional trade. The Freeport hosts companies involved in regional trade, break bulk operations, simple assembly and transformation, LPG storage and re-export, processing of seafood products for leading global markets in the EU, the US, and Far East, light assembly, and manufacturing for exports.


The Mauritius Freeport provides ideal logistics and distribution for companies to carry out the following activities as authorized under the Freeport Act:

• Warehousing and storage

• Breaking bulk, sorting, grading, cleaning, and mixing

• Labelling, packing, repacking, and repackaging

• Minor processing and light assembly

• Ship building, repairs, and maintenance of ships and aircrafts

• Storage, maintenance, and repairs of empty containers

• Export-oriented seaport and airport based activities

• Freight forwarding services

• Quality control and inspection services

• Any manufacturing activity, provided that:

a. the enterprise exports its manufactured goods to the extent of at least 95 per cent of its annual turnover, of which at least 80 per cent shall be exported to Africa; and

b. the remaining percentage may, upon approval by the Board of Investment, be put on the local market.

• Vault services in respect of gold, silver, platinum, precious and semi-precious stones, precious metals, pearls, works of art, and collectors’ pieces and antiques;

• Security, courier, or assaying services, where relevant wholly and exclusively for vault services.

• Global trading, provided that the private Freeport developer or Freeport operator operates one or more activities referred to in item 3 sub-items (a) to (k) of the second schedule of the Freeport Act.

The Freeport legislation provides for a liberal and comprehensive package of incentives for companies looking for a cost-effective logistics platform as mentioned below:

• Duty-Free and VAT free for goods and equipment imported into Freeport zones

• 0% corporate tax

• 100% foreign ownership

• Reduced port handling charges

• Possibility to sell up to 50% of re-export value to the local market (local sales will be subject to VAT and customs duties, the company is charged 15% corporate tax)

Ocean EconomyThe government is committed to promoting the Ocean Economy of Mauritius, leveraging on the Exclusive Maritime Economic Zone, to become one of the main pillars of the economy. The necessary legal and regulatory frameworks are being established to support and monitor ocean economy operators. Moreover, a National Ocean Council has been set up to drive and implement projects of the industry.

Mauritius has a total maritime zone of 2.3 million square kilometres with an Exclusive Economic Zone of 1.96 million square kilometres and a continental shelf of 396,000 square kilometres co-managed by the Republic of Seychelles. Further submissions for an Extended Continental Shelf of 303,000 square kilometres on seabed and subsoil will be made to the Commission on the Limits of the Continental Shelf in respect of Rodrigues and Chagos Archipelago.

Key investment opportunities identified under the Ocean Economy are categorized as per the below segments:

1. Seabed Exploration for Hydrocarbons and MineralsThe granitic nature of the Seychelles Islands and the discovery of a thick sedimentary sequence in the Seychelles plateau have attracted oil companies to prospect in the region. Recent geophysical surveys in the region of the Mascarene Plateau revealed that the continental crust along the Mascarene Plateau extends further southward to the banks. The fiscal, regulatory, and legal frameworks are currently being developed in view of launching expressions of interest for exploration and exploitation concessions by mid-2015.

2. Fishing, Seafood Processing, and AquacultureFishing activities include the island-based artisanal fisheries, Fish Aggregating Devices, the offshore demersal fishery of the banks of the Mascarene Plateau and the Chagos Archipelago, and the tuna fishery in the Western Indian Ocean (industrial fisheries).


New fishing vessels can take advantage of the healthy tuna stock in the South West Indian Ocean as noted by the Indian Ocean Tuna Commission. Opportunities also exist in the increasing transhipment activities at the ports for value-addition such as cutting, filleting, loining, and packaging. In-lagoon aquaculture has also emerged recently and out of the 20 sites proclaimed, 15 sites are available for marine aquaculture. Farming of high-value and niche products such as seaweed, oyster and oyster pearl, crabs, sea urchins, and other shellfish are also being encouraged.

3. Deep Ocean Water Applications (DOWA)DOWA capitalizes on the coldness and nutrient rich properties of very deep sea water to develop a series of commercial activities that can be categorized as upstream and downstream. Upstream relates to the extraction and sale of deep sea water as well as the production of green cooling or other energy conservation and production technologies.

Downstream activities include premium products such as high-end aquaculture and seaweed culture, cosmetics and pharmaceuticals, agrochemicals, water bottling and thalassotherapy, amongst others. There are currently two upstream DOWA projects earmarked in the port area and near the airport respectively.

4. Marine ServicesThe ocean economy will serve as a major platform for playing out their efforts to make Mauritius a high value-added services economy by harbouring a regional platform for marine finance, marine ICT, ship registration, and marine biotechnology based on successful country models.

5. Seaport-Related ActivitiesBusiness opportunities identified include container trans-shipment, cruise travelling, port services, and bunkering. Infrastructure works that are currently in progress in the port will accommodate larger container vessels. A cruise terminal and jetty will be constructed to support growth of cruise activities. Reclamation of land in the port will provide space for ship repair activities and storage tanks for bunkering. In addition, the liberalisation of the bunkering sector is expected to considerably boost this activity.

6. Marine Renewable EnergiesMarine renewable energies can amply contribute to energy security and help in exceeding the expected target of 20.6% of electricity production from renewable energy sources. Preliminary research on offshore wind and ocean wave energies in the waters of Mauritius and Rodrigues has yielded encouraging results. It is also believed that the ocean contains a high potential for ocean current, ocean thermal energy conversion (OTEC), and ocean saline energies, which in the long term may also contribute to energy production. Potential investors currently have access to a Collaborative Research and Innovation Grant Scheme (CRIGS) in which the objective is to improve the competitive edge of Mauritius through collaborative research and development of innovative ideas leading to commercialisation and creation of jobs as well as wealth.

7. Ocean KnowledgeMauritius aims at becoming a centre of excellence for ocean knowledge within the next 15 years, both as a support industry and an industry in its own right. The University of Mauritius that has set up a Faculty of Ocean Sciences is currently looking to secure partnerships with international universities in view of developing the course contents of a variety of proposed ocean-related studies.

HealthcareThe healthcare sector in Mauritius has evolved into an integrated cluster underpinned by a core group of high-value activities such as high tech medicine, medical tourism, medical education, and wellness. Global healthcare companies have invested in multispecialty and super-specialty centres of excellence to provide a wide spectrum of treatment and services to both national and international patients. The presence of international players, namely Apollo Bramwell, Fortis Healthcare, Agarwal Eye Hospitals, amongst others, have contributed to further enhance the standard of healthcare.


Mauritius today combines cutting edge medical technologies, a state-of-the-art hospital infrastructure, a highly skilled and talented pool of healthcare professionals, as well as legendary, caring hospitality. Having built a strong reputation as a medical hub, it is now gradually emerging as a leading medical travel destination. There are opportunities for the setting up of:

• Multispecialty and super-specialty centres

• Specialised diabetes research and treatment centres

• Specialised centres for elderly care and rehabilitative medicine

• Specialised centres for novel treatments such as stem-cell therapies

• Plastic reconstructive surgery clinics

• Clinics for dental surgery and dentofacial orthopaedics

• Convalescence and pain clinics providing specialised care to patients suffering from acute and chronic conditions

• Wellness centres and health resorts

Apart from healthcare, a lot of emphasis is being placed on the biotechnology sector which is leveraging on the combined strength of technological innovation, academic excellence, a cost competitive workforce, a vibrant entrepreneurial spirit, and environmentally friendly policies. The sector has attracted some leading multinational companies in recent years. Emphasis is now laid on niche activities such as medical devices, pharma, drug discovery, bioinformatics, medical biotechnology, clinical trials, pre-clinical development, stem cell research, nanotechnology, and nanomedicine.

Life SciencesMauritius has, over the recent years, experienced growth in various fields of Life Sciences given its key attributes, namely:

• Presence of leading pharmaceutical companies manufacturing drugs for exports to Africa and other parts of the world

• Presence of leading medical devices manufacturers exporting to the global market

• Preferential market access to the EU, USA, and the Eastern and Southern African markets

• Mauritius has an enabling framework for clinical research; the Clinical Trials Act is based on international best practices

• 634 medicinal plants out of which less than 10% have been studied

• Exclusive economic zone (EEZ) of 1.9 million square kilometres (with an additional 396,000 square kilometres co-managed with the Republic of Seychelles) providing enormous untapped marine resources

Investment opportunities exist in pharmaceuticals, medical devices, clinical research, agricultural biotechnology, and marine biotechnology.

Film IndustryMauritius, a film friendly country endowed with natural beauty and great weather has been a popular destination for foreign film productions which dates back to 1979 when the first Indian movie was shot. The Mauritian landscape gained popularity since and to date some 250 productions have been shot in Mauritius.

In this same endeavour, the Film Rebate Scheme, as a production incentive for film producers, was launched in 2012 as an initiative towards the development of a film industry which will encourage production works and increase skill sets for the populace throughout the ecosystem of the creative industry in Mauritius.

The Film Rebate Scheme is open to both local and international filmmakers. It provides film producers with a 30% refund on Qualified Production Expenditure incurred in Mauritius.


Qualifying Productions

• Feature Film

• Single episode drama television programme including animated programme

• Single episode of television documentary programme including factual, natural history, lifestyle, or magazine programme

• Serials

• High-end commercials or advertising programme

Qualifying Production ExpenditureThe allowable expenses cover pre-production, production, and post-production costs that are incurred in Mauritius.

Africa StrategyMauritius being a small economy, the strategic thrust is to capitalize on outward investment to enlarge their economic space. FDI outflow is viewed positively as a sign of Mauritius assuming a larger business role in the region.

Local investors are showing much interest in expanding their business abroad, and it is apparent that outward FDI will continue to be a vehicle that local companies will pursue in securing greater market share and gaining comparative economic advantages that will result in higher revenues and profit growth. Today, around 80 companies have set up operations abroad.

The Africa Strategy is meant to expand the economic space of Mauritius, ensure that Mauritian enterprises capture opportunities across the continent in a risk free environment, and prepare Mauritius to unlock the development potential and growth prospects in the years to come by promoting and exporting their services in Africa, and finally develop a win-win partnership by creating substance as opposed to relying solely on double taxation avoidance treaties to structure and mobilise cross-border investments.

Discussions are at an advanced stage with Ghana, Senegal, and Madagascar with a view to create a conducive and risk-free environment to mobilise private sector investment. These countries had officially solicited Mauritian assistance for the conceptualisation, design, and development of special economic zones with the support of Mauritian enterprises. The involvement of the Mauritius Africa Fund in developing these zones was then announced as a budgetary measure in April 2015 with its mandate revised to steer the development of these Special Economic Zones.

The role of EDB in all these initiatives shall be to facilitate and secure, along with the Ministry of Finance and Economic Development, Government to Government (G-to-G) Agreements to drive outward investment. Implemen-tation of these initiatives will then be followed through by the Mauritius Africa Fund.


The Legal Framework for Investment12


The Economic Development Board Act was enacted in July 2017.

The object of the Act is to consolidate, reform, and streamline the law relating to investment promotion and to provide for the establishment of the Economic Development Board as a body corporate which shall, inter alia:

a. Provide strong institutional support for strategic economic planning and ensure greater coherence and effectiveness in economic policy formulation;

b. Promote Mauritius as an attractive investment and business centre, a competitive export platform, as well as an international financial centre;

c. Act as the main institution responsible for country branding for investment promotion; and

d. Facilitate both inward and outward investment, and ensure a conducive business environment.

Under s5 of the EDB Act 2017

Functions and Powers of Economic Development BoardSome of the main functions of the Economic Development Board shall be to:

a. Provide high-level strategic and policy advice to the government on economic policy formulation;

b. Initiate and undertake necessary economic research at the macro-economic level, engage with stakeholders on economic matters, and formulate investment and trade promotion policies, plans, and strategies;

c. Improve business environment and undertake such other activities as may be necessary to promote Mauritius as an attractive base for investment and as an international financial centre;

d. Identify opportunities in new economic sectors and engage with international partners to develop strategic alliances to create the appropriate ecosystem for these sectors;

e. Spearhead outward investment and assist in developing joint ventures and partnership agreements;

f. Act as the single interface with all investors and liaise with relevant authorities

i. For the registration of investors;

ii. To facilitate the issue of licences or permits, or the granting of authorisations or clearances;

g. Manage the Film Rebate Scheme, the Integrated Resort Scheme, the Invest Hotel Scheme, the Mauritian Diaspora Scheme, the Property Development Scheme, the Real Estate Development Scheme, or such other Scheme as the Minister may approve;

h. (1) Issue such directorates to relevant agencies and authorities as may be necessary for the timely issue of licences and permits and the granting of authorisations and clearances; (2) Request from relevant authorities the grounds for refusal of any licence, permit, authorisation or clearance;


InvestmentHotelScheme(IHS)Certificate,PropertyDevelopmentScheme(PDS)Certificate,SmartCityScheme(SCS)CertificateandFreeportCertificate

• Any person who intends to engage in activities regulated under the Invest Hotel Scheme, Property Development Scheme or Smart City Scheme shall apply to the Chief Executive Officer for an HIS certificate, a PDS certificate, or an SCS certificate, as the case may be, in such form and manner as the Economic Development Board may approve.

• Any person who intends to engage in activities regulated under the Freeport Act shall apply to the Economic Development Board for a Freeport certificate in such form and manner the Economic Development Board may determine.



Assistance for Implementation of Project

• Any investor or self-employed person may request the Economic Development Board to provide assistance, support, coordination, and cooperation with public sector agencies to facilitate and implement his project or business.

• Every public sector agency shall request the Economic Development Board to provide assistance, support, coordination, and cooperation on the review of systems, procedures, and guidelines in order to facilitate the doing of business.

Under s21 of the EDB ACT 2017

Business Facilitation One-Stop Shop for Enterprises Which Have a Project Value Exceeding 20 Million Rupees

• The object of the Business Facilitation One-Stop Shop shall be to facilitate the setting up and operation of an enterprise which has a project value exceeding MUR 20 m, and be a single authority which shall provide all the support and information that the enterprise requires to start and operate its business.

Under s22 of the EDB ACT 2017

Application for Regulatory Sandbox Licence

• Where a person intends to conduct a business activity for which there are no adequate provisions under any enactment, that person may apply for a Regulatory Sandbox Licence in accordance with this section.



Contacts13


Economic Development BoardAddress: 10th Floor, One Cathedral Square Building, 16, Jules Koenig Street, Port Louis 11328 Tel: (+230) 203 3800Fax: (+230) 210 8560 Website: www.edbmauritius.orgEmail: [email protected]

Corporate and Business Registration DepartmentAddress: 5th Floor, One Cathedral Square Building, Pope Hennessy Street, Port Louis 11328 Tel: (+230) 202 0600Fax: (+230) 208 7263Website: companies.govmu.org

Ministry of Finance and Economic DevelopmentAddress: New Government Centre, Port-Louis Tel: (+230) 201 2571Website: mof.govmu.orgEmail: [email protected]

Ministry of Finical Services and Good GovernanceAddress: SICOM Tower, Wall Street, EbeneTel: (+230) 404 2400Fax: (+230) 464 0903Website: financialservices.govmu.orgE-mail: [email protected]

Ministry of Business, Enterprise and CooperativesAddress: 3rd Floor, LIC Centre, President John Kennedy Street, Port-LouisTel: (+230) 405 0770Fax: (+230) 208 9263E-mail: [email protected]

Mauritius Revenue AuthorityAddress: Ehram Court, Cnr. Mgr. Gonin & Sir Virgil Naz Streets, Port-LouisTel: (+230) 207 6000Website: www.mra.muE-mail: [email protected]

Bank of MauritiusAddress: Sir William Newton Street, Port-LouisTel: (+230) 202 3953Fax: (+230) 208 9204Website: www.bom.muE-mail: [email protected]

Financial Services CommissionAddress: FSC House, 54 Cybercity, EbeneTel: (+230) 403-7000Fax: (+230) 467-7172Website: www.fscmauritius.org


Financial Intelligence UnitAddress: 7th Floor, Ebene Heights, 34, Ebene Cybercity, Ebene Tel: (+230) 454 1423Fax: (+230) 466 2431Website: www.fiumauritius.orgE-mail: [email protected]

Mauritius Chamber of Commerce & IndustryAddress: 2nd Floor, Anglo-Mauritius House, 6 Adolphe de Plevitz Street, Port-LouisTel: (+230) 203 4830Fax: (+230) 208 0076Website: www.mcci.org

Landscope MauritiusAddress: 7th Floor, Wing A, Cyber Tower 1, Ebene Cybercity, EbeneTel: (+230) 467 6900Fax: (+230) 467 6907Website: www.landscopemauritius.comE-mail: [email protected]

Mauritius Ports AuthorityAddress: H. Ramnarain Building, Mer Rouge 11609, Port-LouisTel: (+230) 206 5400Fax: (+230) 240 0856Website: www.mauport.comE-mail: [email protected]

Mauritius Tourism Promotion AuthorityAddress: 4-5th Floor, Victoria House, St-Louis Street, Port-LouisTel: (+230) 203 1900Fax: (+230) 212 5142Website: www.tourism-mauritius.mu

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