As a platform for Africa

Why Channeling Your Investments via Mauritius into Africa?

Africa’s improving economic and political landscape have caught the eyes of many major global investors over the last decades and no doubts Africa has witnessed huge investments in various sectors such as, telecommunication, public infrastructure and real estate, hospitality and tourism, mining, oil, gas and energy , agriculture and farming

After a temporary slowdown, due to lower commodity and oil prices in the international market, the African Economy is set to pick up again according to the latest World Bank’s report. This tendency is expected to continue and accentuate further. The African continent is predicted to grow in excess of 5% in 2017, while some African countries such as Ethiopia, Angola, Tanzania, which are used to near double figures growth may re capture this trend.

Strategically located in the Indian Ocean between Africa and Asia, with its political stability and business friendly environment, Mauritius continues to attract global investment to channel to other African partners states thereby accelerating the economic development.  The International business community and most multi-national corporations operating businesses in Africa have been reaping significant rewards from their investments till now.

Recognition and Accolades

Mauritius as the sole financial centre in Africa continues to play an instrumental role in accentuating investment and growth of various African economies.  The country is today rated as a leading investment destination in Africa as confirmed by many International Organizations

Mauritius has won several accolades is globally recognised as THE investment platform for channelling investments in to Africa.  Below is a few important ones;

No Index Global Rank Africa Rank
1 World Bank Doing Business 2016 32 out of 189 countries 1st
2 Global Competitiveness Index 2015-2016 46 out of 140 countries 1st
3 Mo Ibrahim Index of African Governance 2015 1st
4 The Economist Intelligence Unit’s Democracy Index 2015 18 out of 167 countries 1st
5 Knowledge Economy Index 2012-World Bank 62 out of 145 countries 1st
6 Global Enabling Trade Report 2014 – World Economic Forum 29 out of 138 countries 1st
7 Global Information Technology Report 2016 49 out of 139 countries 1st
8 Forbes Survey of Best Countries for Business 2015 37 out of 144 countries 1st
9 The Travel and Tourism Competitiveness 2015 56 out of 141 countries 3rd
10 Global Innovation Index 2016 53 out of 128 countries 1st

Source: Mauritius Board of Investments (www.investmauritius.com)

The legal system

Investors look for a jurisdiction which has a modern, sophisticated and dynamic legal framework. In addition, the hybrid nature of our legal system borrowing legal concepts from both Common and Civil law makes Mauritius an ideal jurisdiction both from an investor and investee point of view as we are well versed in both systems of law.

Political stability and reliability

Cross border investment are inherently risky and investors thus look for a jurisdiction with economic and political stability together with prevalence of the rule of law, and availability and access to an independent justice system. One of the key advantages of Mauritius is that although it is an independent and democratic state, it has retained the Privy Council of the United Kingdom as the ultimate Court of Appeal

The regulatory framework

Investors look for a jurisdiction which has highest standards of regulation and which is committed to comply with international standards. Mauritius is an established IFC of substance and has an excellent track record. Mauritius has also entered into a number of Investment Promotion and Protection Agreements (“IPPAs”). IPPAs typically offer the following guarantees to investors from the contracting states:

  • free repatriation of investment capital and returns;
  • protection against, or compensation in the event of, expropriation;
  • most favoured nation rule with respect to the treatment of investment, compensation for losses in case of war or armed conflict or riot etc; and
  • arrangements for settlement of disputes between investors and the contracting states.
Substance and depth of offering

Investors look for a jurisdiction that has the breadth and depth in respect of legal vehicles and professional services. Mauritius offers a choice of various types of vehicles such as companies, protected cell companies, sociétés, trusts, limited partnerships and foundations making Mauritius a unique jurisdiction for the structuring of cross border transactions, asset protection and estate/succession planning. Mauritius is also known as a platform for the setting up of most of the Africa focused funds. Investment funds can be either open ended or closed end fund. Further to the primary classification, the investment funds may further be categorised as exempt funds when targeting high net worth individuals or sophisticated investors or retail funds.

Geographical / Regional advantages

There may be advantages to be gained by an investor to organise its affairs in a country that enjoys geographical proximity to its key markets. For example, Mauritius is a member of the major African regional organizations which provide preferential access to markets in the Africa region such as the African Union, Southern African Development Community (“SADC”), the Common Market for Eastern and Southern Africa (“COMESA”) and the Indian Ocean Rim – Association for Regional

Cooperation (“IOR‐ARC”). Its membership of these regional organisations, and being a signatory to all the major African conventions, can make Mauritius the best financial service centre for establishing any fund or other vehicle for investment into Africa, especially having regard to treatment of the investments.

Double Taxation Agreement with African Partner and Tax benefits

It is very common in the context of cross border investments for businesses to be subject to double taxation. In order to reduce or eliminate the unfair burden of double tax on the same income, investors chose to organise their affairs in a jurisdiction which has a bilateral DTA with the investee country. As of today Mauritius has signed 43 DTAs, out of which nearly 20 with its African partners. There are still 18 DTAs under negotiation and some under way for ratification. It is worth noting that in the event there is no treaty in place with a trading partner, there is a unilateral tax credit mechanism under the Mauritius domestic Income Tax laws.

Finsburey is here to connect you in the most tax efficient way to your African Opportunities.

We have the knowledge and experience in setting up the appropriate structures for your investment into African projects. We shall provide you with a tailor made solutions base on your specific circumstance and provide you with the necessary assistance with other matters including legal, compliance and statutory .

In addition to the above services, we shall assist with;

  • Company and other entities formation
  • Provision of Registered Office Address.
  • Provision of Directors
  • Provision of Secretary.
  • Open the relevant bank accounts.
  • Bookkeeping and Accounting including Tax filings where applicable.
  • Corporate administration and other miscellaneous services.