Mauritius sweetens foreign investment incentives

Mauritius is beefing up its foreign investment incentives for foreign investors that in the past years helped fuel its economic growth. This is a bold step to counter the adverse impact of the 2020 coronavirus pandemic. Investing in Mauritius with advantages generous to foreigners is already amongst the sweetest on the offshore markets. The healthy gains of foreign direct investments (FDIs) to the country in recent years attest to this.

FDIs in the country rose 27 per cent to USD472 million in 2019, according to a UNCTAD report. Mauritius is notably the fourth largest FDI destination amongst Small Island Developing States and one of only two with year-on-year gains.

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Cost of doing business trimmed further

Mauritius outlined in its 2020-2021 budget several measures encouraging foreign investments further. One is a further reduction in the cost of doing business in Mauritius under new government policies.

These cuts include a reduction in the fees for re-instating companies from MUR15,000 to MUR5,000. The government is also waiving the application fee for land use and building permit.

Mauritius is likewise increasing its use of digital platforms to reinforce its top world ranking in ease of doing business. Investing in Mauritius with advantages of government e-services is on the table in several ways.

The government, for instance, is digitising incorporation of companies in Mauritius. Similar digital measures shall make it easier for investors to operate a business and hire manpower.

The government is also further grooming the competitiveness of the country’s financial services sector. Towards this end, the Bank of Mauritius is launching new financial products including a digital currency. The central bank is likewise upgrading its Mauritius Credit Information Bureau so that it can provide a credit score of potential borrowers.

Investing in real estate: smooth as silk

The government’s more efficient digital mode of doing things likewise extends to the real estate sector. Digital power of attorney can be used to facilitate foreign buyers’ purchases of immovable properties. Submission of property registration deeds can also be channelled through the government’s e-registry systems.

Moreover, the government is setting up a new Land Use and Valuation Information Management System (LAVIMS) using blockchain technology. This system is another widget to investing in Mauritius with advantages in efficient ways of doing business. LAVIMS results in lower costs arising from improved land transaction procedures, while at the same time, stimulating the market.

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