Why choose Mauritius as your business gateway
Mauritius, often called the gateway to Africa, is more than just a picturesque island. It stands as a strategic hub for businesses aiming to expand into African markets and beyond. Here’s an in-depth look at why Mauritius should be your top choice for international business operations.
Strategic location and good connectivity
Mauritius is strategically located in the Indian Ocean, about 2,000 kilometres east of mainland Africa, making it an ideal bridge between Africa, Asia and Europe. Its time zone (GMT+4) aligns well with major global markets such Africa, the Gulf and Europe, enabling businesses to manage operations efficiently and ensure real-time communication with partners and clients worldwide.
Mauritius may be a small tropical island, but it enjoys robust global connectivity. Mauritius boasts direct connections to nine out of the 15 largest hubs worldwide. Mauritius Airport, also known as Sir Seewoosagur Ramgoolam International Airport, has non-stop passenger flights scheduled to 27 destinations in 18 countries. In total there are 20 airlines flying from and to Mauritius.
With high-speed internet, optic fibre and 4G coverage over most of the island, residents enjoy strong international connectivity. Mauritius Telecom plans to build a subsea cable connecting Africa, the Indian Ocean islands and Asia. To be called T4, it will offer 1,000 times more capacity than the existing South Africa Far East (SAFE) cable.
Diverse and skilled population
Mauritius is an island nation with a population of 1.3 million people, comprising a wide range of cultures, languages and traditions. This is a significant asset for businesses looking to operate in a multicultural environment. The majority of the population speaks Creole, but English and French are also widely spoken, making communication seamless for international businesses. This linguistic versatility ensures that businesses can easily interact with local employees and partners, enhancing operational efficiency.
Stable and competitive economy
Mauritius is Africa’s most widely praised democratic developmental state. It has successfully evolved from a low-income, sugarcane-dependent economy at independence in 1968 to an upper-middle income diversified economy. Per capita income of USD260 in the 1960s has risen to USD12,600 in 2024 and is now the highest in Africa. It briefly reached high-income country status in 2020 before the global COVID-19 pandemic. A robust government support programme and structural reforms have sparked a resilient recovery. In 2023, real GDP grew by 7%.
Mauritius has maintained a diversified and competitive economy. Key sectors now include tourism, information technology and manufacturing. tourism, manufacturing, fisheries, ICT, and financial services, which contributes almost 40% of GDP.
A proactive approach to education and infrastructure, as well as its openness to foreign investment, have fostered growth in various sectors. A recent World Bank report identified education, healthcare and renewable energies as economic sectors with a potential for higher economic growth, highlighting the importance of innovation as a crucial element for Mauritius to transition back to a high-income economy.
Business-friendly environment
Mauritius is pro-trade and investment and is among the freest and most business-friendly countries in Africa. The 2024 Index of Economic Freedom, published by the Heritage Foundation, ranked Mauritius first among 48 countries in the Sub-Saharan Africa region and at 19 globally.
The Economic Development Board (EDB), which sits under the Ministry of Finance, Economic Planning and Development, acts as a single gateway government agency responsible for promoting investment in Mauritius. It provides information on investment and trade opportunities, incentives, procedures to establish a business in Mauritius, and guidance to non-citizens to work and live in Mauritius through the permit framework.
The Mauritian legal system draws from both French civil law and British common law traditions. This combination provides a flexible but reliable framework in which businesses can operate. The highest court of appeal is the judicial committee of the Privy Council of England and Wales.
Mauritius is a member of the Common Market for Southern and Eastern Africa (COMESA) and the Southern African Development Community (SADC) free trade areas. The government has signed Double Taxation Avoidance Agreements (DTAAs) with 46 countries and is party to a series of treaties under negotiation.
Mauritius has also signed Investment Promotion and Protection Agreements (IPPA) with 46 countries. As well as attracting foreign direct investment from traditional markets like the UK, France and US, it signed a free trade agreement with China and a preferential trade agreement with India, both in 2021.
Strong regulatory framework
Mauritius has established a robust regulatory and supervisory regime for the financial services sector, with the Bank of Mauritius responsible for the banking sector and the Financial Services Commission responsible for non-banking financial services. It is founded on a well-developed, enabling legal framework, and a range of laws covering banking, insurance, pensions, securities, trusts and anti-money laundering. The Companies Act governs incorporation of businesses.
The Financial Action Task Force (FATF) removed Mauritius from the list of jurisdictions under increased monitoring in October 2021 after the government put in place new measures to improve the anti-money laundering and the combatting the financing of terrorism (AML/CFT) regime. The European Union also removed Mauritius from its list of high-risk third countries in January 2022.
Competitive tax regime
While Mauritius is not a tax haven, it offers a competitive tax environment and a number of other fiscal incentives that make it highly attractive to international investors. Companies in Mauritius are generally subject to a flat corporate rate of 15%. However, there are several exemptions and special licences that serve to reduce this rate significantly depending on business activity.
All companies, including Global Business Licence (GBL) companies, qualify for an 80% tax exemption in relation to certain specified foreign-source income, which includes foreign dividends not allowed as deduction in source country and interest income. The tax exemption on interest earned by Collective Investment Schemes (CIS) or Closed End Funds is 95%.
Businesses can also benefit from 100% foreign ownership, no minimum foreign capital requirement, no tax on dividends or capital gains, free repatriation of profits, dividends and capital, accelerated depreciation on acquisition of plant, machinery and equipment, exemption from customs duty on imported equipment, and access to an extensive network of DTAAs.
The government’s commitment to maintaining a competitive tax regime ensures that businesses can maximise their profitability while also complying with international standards. Mauritius has adopted the OECD’s Common Reporting Standard for automatic exchange of financial account information. It is also a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and is party to the two-pillar solution to global tax challenges, including a global minimum corporate tax.
Advanced banking infrastructure
Mauritius hosts 20 operational banks, of which six are local banks, 10 are foreign-owned subsidiaries, three are branches of foreign banks, and one is a private bank. These offer a robust banking infrastructure to support a wide range of services, including e-commerce accounts, escrow services and more, ensuring businesses have the financial support they need to flourish. The presence of major banks and financial institutions enhances the island’s reputation as a secure and reliable financial centre, attracting businesses and investors alike.
Residency and investment opportunities
Mauritius offers attractive residency options through retirement permits, real estate investments and investor permits. These pathways make it an appealing destination for individuals and families looking to relocate or invest in a stable and secure environment. The retirement permit, for example, is available for persons over the age of 50 and requires a minimal financial commitment. This ease of obtaining residency, coupled with the island’s high quality of life, makes Mauritius a desirable location for expatriates and investors.
Non-citizens are eligible for a residence permit upon purchasing residential property under the Property Development Scheme (PDS), Integrated Resort Scheme (IRS), Real Estate Scheme (RES) and G+2 scheme for a minimum investment of USD375,000.
The Mauritian government relaxed many of the investment terms and conditions for foreign investors in 2020 in response to the COVID-19 crisis. The minimum investment for obtaining an occupation permit was halved to USD50,000, while the minimum turnover and minimum amount invested for the Innovator Occupation Permit was removed and the monthly remuneration for professionals with an occupation permit was halved to USD667.
Professionals with an occupation permit and foreign retirees with a residence permit were permitted to invest in other ventures without any shareholding restrictions, while the duration of permits was increased from three to 10 years. The duration of the permanent residence permit was doubled to 20 years.
Non-citizens holding a residence permit under the real estate schemes are no longer required to hold an occupation or work permit to invest and work in Mauritius, and a Family Occupation Permit was introduced to allow foreign families to invest and reside in Mauritius for a period of 10 years in exchange for a minimum contribution of USD250,000 to the COVID-19 Projects Development Fund.
A premium investor certificate was introduced in 2021 to allow companies investing at least USD11 million, or companies involved in the manufacture of pharmaceuticals and medical devices, to benefit from incentives.
A hub for innovation and Special Licences
Mauritius is at the forefront of innovation, particularly in fintech. The introduction of the Virtual Assets and Initial Token Offering Services Act positions it as a leader in regulating virtual assets and fintech activities. This legislative framework encourages the development of a dynamic fintech ecosystem, attracting both start-ups and established companies.
A Regulatory Sandbox Licence (RSL) was implemented to promote innovation by eliminating barriers to investment in cutting-edge technology. An RSL gives an investor fast-track authorisation to conduct business activity in a sector even if there is not yet a legal or regulatory framework in place for the sector.
Additionally, the island offers over 60 special licences, catering to diverse industries such as investment, AI-powered services, e-commerce, shipping, warehousing, trade promotion, tourism and property development. These licences typically offer tax benefits, further enhancing the attractiveness of Mauritius as a business hub.
Tax holidays of five to eight-years in length are currently available to the following licensees: Global Headquarters Administration, Global Treasury Activities, Overseas Family Office (single), Overseas Family Office (multiple), Investment Banking, Global Legal advisory Services and Captive Insurance.
Supportive government
The government of Mauritius is highly supportive of business development, with institutions like the Economic Development Board (EDB) playing a crucial role in facilitating business operations. The EDB provides valuable support and guidance to businesses, ensuring they can navigate the regulatory landscape effectively. This proactive approach by the government creates a business-friendly environment that encourages investment and innovation.
All businesses must register with the Corporate and Business Registration Department (CBRD). On completion of the registration process, the CBRD issues an electronic business registration card bearing a unique registration number and an e-certificate of incorporation. Registration for VAT can also be made through the CBRIS at time of incorporation of the company. Registered companies can then apply for a licence, work and residence permits, and benefit from incentives offered to investors.
Conclusion
Mauritius is more than just a beautiful island; it is a thriving business hub that facilitates global expansion, particularly into Africa. Its blend of strategic advantages, strong economic foundations, competitive tax regime and supportive infrastructure makes Mauritius the ideal choice for businesses seeking growth and efficiency.
By choosing Mauritius, you’re not only tapping into a dynamic market but also aligning your operations with a jurisdiction committed to innovation and excellence. Whether you’re a start-up or an established enterprise, Mauritius offers the tools, resources and environment to help your business flourish.
