New wins in looking for investors in Mauritius pave path to economic recovery

More successes on looking for investors in Mauritius via the country’s International Financial Centre (IFC) shall help drive an economic rebound expected onwards to 2021. It is on the fundamental strength of this sector that the country is initially counting on, as its tourism industry may take a longer time to heal from the ill-effects of the Covid-19 pandemic.

The IFC notably has a track record of more than 20 years in cross-border finance and investment, ready to navigate the challenges moving forward Covid-19. Figures from the Mauritian Economic Development Board (EDB) show that the IFC has more than US$85 billion assets under management. EDB data also indicate that the IFC as of end-February 2018 has compiled 11,632 global business structures and 989 global funds.

The banking sector’s clout

 The IFC’s backbone, the Mauritian banking industry, is comprised of 21 banks. The majority of these are either foreign-owned subsidiaries or branches of foreign banks. Mauritius’s banking industry generates investment funds, private equity funds, and legal and corporate services.

Foreign investors in Mauritius, which have been on the rise in recent years, are expected to continue growing their stakes in the country.  They have seen the IFC as a well-regulated and transparent platform, which is crucial in wealth-building efforts. Corporate governance amongst IFC players is also exceptionally well. Atop these factors, political stability reigns in Mauritius, and it offers a skilled workforce needed for businesses to grow.

Mauritius, moreover, has no exchange controls. It also enables foreign investors to mitigate their risks through its extensive and still-expanding bilateral network in key emerging markets.

Mauritius-based stock investors, in particular, can reap rewards from the country’s ideal time zone (GMT +4). Stock trading on all global markets within one day is possible for these investors.

An ace in cost-competitiveness

The competitive operating cost prevailing in the IFC and ease of doing business in the country further bolsters Mauritius as a centre for capital raising and listings. Mauritius delivers all these through its modern infrastructure and state-of-the-art connectivity. The country also offers more besides its innovative legal framework but also a deep pool of bilingual financial and legal professionals.

The Mauritian government is ensuring that the country could continue leveraging the fundamental strength of its IFC and score more successes. The Bank of Mauritius adopted several financial measures to support businesses impacted by the pandemic. Also designed to ensure that the country’s forex market sustains its smooth operation, these measures include a US$300 million special foreign currency line of credit for operations generating foreign currency earnings.

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