The evolving economic landscape, investment opportunities and improved business climate of Mauritius
Mauritius Embassy,Cairo, Egypt
www.investmauritius.com
1. Overview: The Mauritius Economy
2. The Mauritius Business Environment
3. Investment Opportunities
Agenda
The MauritiusEconomy
Dynamic & diversified economy
Political, social and economic stability
Strong and supportive private sector
Established rules of law with the Privy Council as the Highest Court of Appeal
Mauritius Attributes
The MauritiusEconomy
Evolving Economic Landscape
USD 320* Sugar
USD 1,000 Textile Sugar Tourism
USD 2,500 Textile Sugar Tourism Financial Services ICT Freeport
USD 7,500 Textile ICT Financial Services Seafood Logistics Property Development Healthcare & Life Sciences Knowledge Renewable EnergyMONOCR
OP
INDUSTRIAL
SERVICES
INNOVATION DRIVEN
USD 20k by 2020s
* GDP per capita
The MauritiusEconomy
Sectoral GDP Contribution (2010)
Manufacturing 18.4%
Construction6.9%
Retail 11.8%
Hospitality7%
Logistics9.5%
Financial In-termediation
10%
Real Estate 12.3%
Public Admin-istration
6.1%
Education4.4% Healthcare
3.6%
1. Overview: The Mauritius Economy
2. The Mauritius Business Environment
3. Investment Opportunities
Agenda
Start a business in 3 working days
No minimum capital requirement
100% Foreign ownership
Delivered In 3 working days Silent agreement principle Total issued to date: 8654
Start Up
Occupation Permit
Property Acquisition
The MauritiusBusiness Environment
New Business Environment
Facilitate property acquisition
Ex post control
Homogenised 15% corporate tax Personal Income tax set at 15% Local government tax
Free movement of Capital
Acquisition of property by non-citizen
Land transfer & Registration Duty at 5%
Taxation Exchange Control Land Acquisition
The MauritiusBusiness Environment
Mauritius Fiscal Regime
The MauritiusBusiness Environment
International Benchmarks
INDEX RANK Index of Economic Freedom 2010
World Bank Doing Business Survey 2011 Ibrahim Index of African Governance 2010 Global Competitiveness Index 2010 - 2011
12th out of 179 countries -1st in Africa 20th out of 183 countries -1st in Africa 1st out of 48 African countries
55th out of 133 countries
The MauritiusBusiness Environment
FDI Inflows (1997 – 2010)
36.39.1
40.4
227
29.3 30.6
61.4
56.1
87.7
93.6
240.7
383.8380.6
293.1
464.9USD millions
1. Overview: The Mauritius Economy
2. The Mauritius Business Environment
3. Investment Opportunities
Agenda
From Sugar to Cane Industry
InvestmentOpportunities
Sugar Sector Strategic Plan & Multi Annual
Adaptation Strategy
Cost reduction through
centralisation and clustering process
Energy Production via renewable resources Development of
an efficient cane industry: white & special sugar, ethanol
Evolution of Manufacturing Sector
InvestmentOpportunities
1970s- 1980s 20101990s – 2000s
Nascent Manufacturing
Vertical Integration of the Textile Industry
Value Addition & Diversification
Bulk ApparelManufacturing
JewelleryProducer’s Designs (Brands)
Fashion IndustryPrecision ManufacturingMedical Devices
Manufacturing Sector
InvestmentOpportunities
Actual contribution to GDP: 18.3%FDI: In excess of MUR 1 billion - 2010
FDI Evolution for past 5 years
181271
149
485
1,026
Evolution of Seafood Industry
InvestmentOpportunities
1980s
2010s
2000s
1990s
Tuna canning- Tuna fishing & canning for export
Modern Fisheries- Diversification of
fishing activities
- New technologySeafood Hub- Fish processing & storage facilities- Fish transshipment- Ship repair and other services
2010 Marine Sustainability- Large scale aquaculture
- Offshore fishing farms- Sustainable development
Exclusive Economic Zone of 1.9 million km²
Support Agencies & Infrastructure
Cold Supply Chain Readily available
Market Access
Exclusive Economic Zone
InvestmentOpportunities
Property Development Landscape
InvestmentOpportunities
1980s
2010 Onwards2000 Onwards
1990s
- Hotels
- Hotels- Commercial- Office
- Hotels- Commercial- Office- IRS- RES
- Hotels- Commercial- Office- IRS- RES- Mixed Use- Invest-Hotel
0
100
200
300
400
500
600
700
20 49 6598
133161 177
214258
299351 376387 391 405 426
482510
544 566608
639689
Cumulative Sales of IRS & RES villas
InvestmentOpportunities
Cumulative Sales - Units
USD 82 million
USD 387 million
USD 831 million
Hospitality & Property Investment
InvestmentOpportunities
7 7 17 43103
234 196 205275
391495 554 504
632
887
1157 11861198 Total Investment
Foreign Investment
USD million p.a
Source: BOM FDI Statistics;* BOI provisional forecasts 2010
Nationality of IRS & RES buyers
InvestmentOpportunities
Nationality – RES Buyers
Indian 3%
South Africa
n 41%
Mauritius 11%
British3%
French
36%
Swiss 4%
South Africa
n 30%
Mauri-tius9%British
20%
French
37%
Nationality – IRS Buyers
Future Developments
InvestmentOpportunities
Industrial parksReal Estate (IRS, RES, Mixed Use)HotelKnowledgeHospitals
InvestmentOpportunities
Regional Logistics HubTransshipment by Port of Discharge:
The most competitive port in the region: Low Port Dues and Cargo Handling CostNew utilization rate: 57 per cent (700 000Teus)
InvestmentOpportunities
Container Traffic
Total Transshipment Containers
Total Containers
YEAR 20101980 20, 7122010 332, 662
Total Container Traffic
TransshipmentYEAR 20101980 02010 109,992
CAGR of 10%
InvestmentOpportunities
Freeport PerformanceVolume (tons)
CAGR 18%
20,956
323,000
1.52.5
5
Cumulative Investment (MUR Billion)
InvestmentOpportunities
Evolution of ICT-BPO IndustryBreak through: Connection to SAFE International Fibre Optic Cable
2002 2004 2006 2008 2010
72 companiesData Entry and Telemarketing activitiesEmergence of Mauritius as a Disaster Recovery and Business Continuity hub
148 companiesShift towards more value added domain , software development activities
258 companiesMauritius positioned as a Data Centre hub
400 companiesPromulgation of DPA ActFirst Certified TIER IV Data Centre in the Indian Ocean
InvestmentOpportunities
ICT/BPO Industry
Mauritius42%
Asia Pacific6%Indian Ocean Islands
3%With a Mauritian
Partner4%
Europe40%
USA, Canada & Car-ribean islands
2%
South Africa & other African Countries
4%
Job Creation
3,8015,513
6,960 10,440
11,435 15,000
Sources of investors
Contribution to GDP (%)
5.3
5.45.5
5.3
5.7
6.4
Evolution of Financial Services Sector
1992 2004 20102001/2002
2007/20081838
Creation of first commercial bank in Mauritius
Launching Mauritius as an ‘offshore’ centre
New financial products & strengthening of the Regulatory frameworkAnti Money Laundering Act 2002
Introduction of the single banking license
Legislations for New Investment Products
Moving to Substantive, High Value Added Services
InvestmentOpportunities
Your IFC for Emerging Markets InvestmentGeographical Breakdown: Source of Investment
Geographical Breakdown:Investment through GBC1
America
30%
Asia26%
Eu-rope24%
Africa16%
Others4%
Asia 77%
Africa
13%
America2%
Europe4%
Others4%
InvestmentOpportunities
* Figures as at June 2010
Capital Market Transactions
Breakdown of Foreign Investment on SEM
InvestmentOpportunities
United Kingdom
35%
Hong Kong2%United States
30%
Ghana1%
Ivory Coast
2%
Euro-pean Union13% Others
8%
South Africa
6%Cayman Islands
3%
First exchange in Africa to list, trade and settle in USD, Euro and GBPRecognised by UK’s HMRCTotal Annualised Return: approx 18%First multi asset class exchange in this region (Turnover > 50 Million USD)
InvestmentOpportunities
Emergence of Mauritius as a Medical HubContribution of Healthcare sector to GDP (2010): 3.6%
2005: 1000 foreign patients visited Mauritius Emerging as a medical travel destination with 500 beds
2006: Business Facilitation Act promotes foreign investment in medical institutions 2007-2009: Increasing FDI in
Healthcare sector. Major international players invest in high quality specialty and multi-specialty centers.
2010: Above 10,500 foreign patients seeking outpatient & inpatient treatment in Mauritius
2010 - 2011: Preparation of Clinical & Preclinical Research Legislation
2011: 800 beds in private sector and 3,500 beds in public sector
2020: Target of 100,000 foreign patients
InvestmentOpportunities
Overview of the Healthcare SectorTreatment Areas Number of Private
Clinics
12 13 13
1720 20
Chiropractors10%
Fertility8%
Hair Treatment
3%
ENT1%
Cosmetic And Plastic
surgery25%
Cardiology18%
Others12%
Or-thopaedics
12%
Dentistry11%
InvestmentOpportunities
Evolution of foreign patients seeking treatment in MauritiusMedical travel: an eight-fold increase over four years
Source countries of foreign patients
South Africa8% Comoros
3%Rest of
the World13%
Mada-gascar28%
Sey-chelles
15%
France14%
Reunion Island14%
UK5%
1,000 1,500
5,0008,500
10,600
Knowledge Sector
InvestmentOpportunities
Free Education by the Government
Creation of the 2nd Public University: University of Technology, MauritiusEnrolment in Tertiary Education: 17,000 students
2005
Setting up of Study Mauritius Office61 higher educational institutions
Construction of new campuses by the Government
Dedicated Ministry for Tertiary Education, Science, Research and Technology More than 41,000 students enrolled in Tertiary Education
The Tertiary Education Commission (TEC) regulates private post-secondary education institutions
1976
2000
2010
2011
2012
Knowledge Sector
InvestmentOpportunities
1,000 foreign students are studying in MauritiusTarget: 100,000 students by 2020
African10% Euro-
pean9%
Re-gional4
2%
Asian39%
Breakdown of Foreign Students by Region
InvestmentOpportunities
New Sectors & Opportunities
Thank You
Embassy of Mauritius, Cairo