What Makes Mauritius an Attractive Investment Destination?
Category Investment
A vibrant and prosperous business destination with an unparalleled quality of life, Mauritius offers an ideal haven for global citizens. Internationally recognized as the "Star and Key of the Indian Ocean," the island's strategic positioning facilitates seamless connectivity across Asia, Europe, and Africa, while serving as a premier international financial center, unlocking boundless business prospects and access to the African market.
Mauritius boasts the most conducive business climate in sub-Saharan Africa, characterized by political stability, robust security measures, and a robust legal framework blending elements of the French Civil Code and the British legal system. Enjoying a democratic governance structure and a free press, Mauritius holds the distinction of being among the 21 nations classified as "Full Democracy" by the Economist Intelligence Unit in 2022, a unique status in Africa.
With a bilingual and often trilingual workforce proficient in English, French, and Creole, boasting a literacy rate of approximately 93%, Mauritius embraces economic liberalization, fostering technological transfer, knowledge exchange, and capital influx. Committed to elevating its status to that of a high-income economy, Mauritius actively welcomes foreign expertise, talent, and investment.
Whether you're an investor, professional, entrepreneur, or retiree, Mauritius presents compelling incentives for both business and lifestyle pursuits. Foreign nationals seeking to work, reside, or retire in Mauritius can explore various avenues through Occupation Permits, Residence Permits, or Permanent Residence Permits.
Key Facts
With a population of 1.3 million people, Mauritius, a diverse and multicultural nation, presents an array of investment opportunities across various sectors.
Benefiting from a favorable ease of doing business ranking and stable governance, Mauritius fosters the optimal conditions for business endeavors.
Market Access
The Mauritius-China Free Trade Agreement (FTA) was swiftly negotiated, with only four rounds of discussions culminating in its signing in October 2019. Remarkably, this FTA, which entered into force on January 1, 2021, marks Mauritius' inaugural agreement featuring a comprehensive section on Trade in Services.
Why Mauritius:
Broad-Based Economy
Over the years, Mauritius has charted a robust growth-focused trajectory, culminating in one of the highest per capita incomes on the African continent. Since achieving independence in 1968 with a per capita income of USD 400, our strategic development initiatives have propelled us into the ranks of high-income nations, boasting a Gross National Income (GNI) per capita of USD 10,243 (RS 456,864) in 2022. This success owes much to our commitment to political stability, a resilient institutional framework, and a conducive regulatory environment, all of which form the bedrock of our economic advancement. Furthermore, our adoption of open trade policies has been instrumental in sustaining this growth, catalyzing the evolution of Mauritius from a monocrop economy reliant on sugar cane as its primary source of foreign earnings in the 1960s to a dynamic, diversified, and inclusive economy. Today, Mauritius stands as an inviting destination for investment across more than 15 sectors of activity.
Good Governance
Mauritius stands as a bastion of political, social, and economic stability. Bolstered by an extensive network of Double Taxation Avoidance Agreements and Investment Promotion and Protection Agreements (IPPAs), Mauritius provides investors with an optimal business environment, ensuring predictability, confidence, and security. Additionally, Mauritius hosts the Permanent Representative Office of the Permanent Court of Arbitration (PCA), further solidifying its commitment to fair and impartial arbitration.
Accolades/Benchmarks
Mauritius ranks among the top 20 countries globally for ease of doing business and has consistently solidified its leadership position in Sub-Saharan Africa. This recognition by the World Bank underscores Mauritius' ongoing competitiveness and appeal to the international investor community. In a bid to further enhance efficiency and facilitate business operations, the Economic Development Board, in partnership with the European Union, officially launched the National Electronic Licensing System (NELS) on March 28, 2019.
The primary aim of implementing the National Electronic Licensing System is to provide a unified platform for the application, payment, and processing of various business licenses and permits. As part of ongoing reforms, a Business Process Reengineering initiative is underway to streamline procedures for the determination of 140 business-related licenses and permits across 14 ministries. The establishment of NELS reaffirms the government's dedication to leveraging technology to address regulatory challenges and improve overall business environment.
International Finance Centre
Mauritius boasts a sophisticated, transparent, and meticulously regulated international financial center, fostering an environment conducive to a comprehensive array of financial services. These services include treasury management centers, global funds, protected cell companies, captives, family offices, and trusts. In order to stimulate new endeavors, the government has implemented tax incentives such as holidays for establishing regional headquarters, investment banking, fund management, and other related activities.
Telecommunications
Mauritius is currently linked to two undersea cables: the South Africa Far East (SAFE) and the Lower Indian Ocean Network (LION)/LION2 cables, which provide international Internet capacity. To position Mauritius on the digital superhighway, the island will soon be connected to two additional international Fiber Optic Cables: the Indian Ocean Xchange Cable (IOX), linking Mauritius, Reunion Island, and Rodrigues to South Africa and India, and the MElting poT Indianoceanic Submarine System (METISS), connecting Mauritius, Reunion Island, Madagascar, and South Africa.
Moreover, the Central Electricity Board, through Fibrenet, has implemented a second national fiber optic cable backbone in Mauritius. This network, complementing the existing fiber infrastructure from telecom operators in Mauritius, aims to bolster the government's efforts in providing affordable and accessible broadband services to all.
Air Connectivity
Mauritius benefits from a robust aviation network, boasting service from more than 20 airlines and linking to over 150 destinations globally. With strategic code share agreements with South African Airways and Kenya Airways, Mauritius is poised to expand its presence in Africa, utilizing these partnerships as gateways to the continent. Additionally, Mauritius aims to establish itself as a pivotal hub, efficiently connecting Southern African markets to destinations across the Asia-Pacific region. Projections indicate an expected influx of approximately 8 million passengers through the airport by 2040.
In terms of connectivity, Mauritius offers direct flights to nine of the top 15 airport hubs worldwide, including Paris, London, Singapore, Dubai, Johannesburg, Nairobi, New Delhi, Mumbai, and Perth..
Port Connectivity
Mauritius is in the process of developing an island container terminal to accommodate container traffic beyond 2025. The government is committing Rs 47 billion (USD 1.3 billion) to advance the blue economy and revamp Port Louis Harbour into a prominent regional maritime hub. These initiatives encompass the construction of an island terminal, a wave breaker, a fishing port, and storage facilities for oil and gas, among others. The Mauritius Container Terminal (MCT) is poised to emerge as one of the largest container ports in the region, with ongoing projects including the extension of the wharf by 800 meters, a venture valued at MUR 6.5 billion. This ambitious undertaking underscores the government's vision to elevate Port Louis as the premier maritime platform in the Indian Ocean.
Things to know
Quality of Life:
In 2019, Mauritius claimed the top spot on Mercer's Quality of Life Index as the African country with the highest quality of life. This ranking took into account 39 factors spanning from socio-cultural environment to the quality of schools and accommodation. Furthermore, according to the World Happiness Report 2022, Mauritius continues to maintain its position as the highest-ranking African nation in terms of overall happiness.
A vibrant culture, unique & exquisite lifestyle
Mauritius provides a lifestyle characterized by a blend of comfort, luxury, modernity, and cultural traditions, seamlessly intertwining work and leisure. The island actively seeks to attract new talents, skills, and technology. Foreign nationals interested in investing, working, living, or retiring in Mauritius can explore different pathways, including the Occupation Permit, the Residence Permit, or the Permanent Residence Permit.
Smart City Projects
The smart city initiatives spread throughout the island aim to reshape both rural and urban landscapes in Mauritius as part of our ongoing journey toward transformation and enhanced infrastructure. These projects, primarily led by private sector operators, focus on mixed-use developments that serve as compelling magnets for increased investment, job creation, and the introduction of cutting-edge technology to our shores, all within the framework of a live, work, and play environment.
Author: EDB & Jonathan