80% of the population of the African continent is unbanked. As such there is the need for fintech firms to offer financial services that are different from traditional ones. Nowadays, with new technologies, as long as customers have a mobile phone, they can access life-changing and empowering solutions that fintech can bring. Some example of these are mobile money, mobile authentication, financial chat bots, social lending or even bitcoin wallets. These technologies are changing the way people do business and since clients are open to change, they have a large following and a good acceptance rate. As such, this sector seems a good one to invest in and Mauritius is the perfect location to establish a firm.
Why is Mauritius a good base to establish a company?
The island is a prime location to be a fintech hub for the African continent and not just because of its geographical position. Mauritius is an International Financial Centre. This means that it has a number of services that support the flow of traditional international financial systems already in place.
Additionally, the government has implemented various Investment Promotion and Protection Agreements (IPPAs) with several African countries. As such, it can act as a buffer between businesses, African governments and legislators, which is a huge benefit for start-ups looking to enter a new market or companies wishing to collaborate with businesses in the African continent. Lastly, corporate governance is an important part of the business culture in Mauritius. Thus, companies can benefit from a stable environment.
Why not join a fintech hub?
If you are fintech startup or any corporate entity, you must be aware that the environment is constantly changing and there are some risks while developing in-house technologies in response to market needs. The overall consensus agree that firms will have the most opportunity to grow if there are partnerships between more established FSPs or corporates and smaller companies with the ability to innovate. This would help all businesses grow and traditional firms can broaden their offerings with fresh products. As such, it would be a good idea to join the Mauritius Africa Fintech Hub.
Benefits of joining the Mauritius Africa Fintech Hub
- The hub has an existing network of Mauritian, pan-African and international entrepreneurs, fintech businesses, tech experts, corporate entities and FSPs that are open to collaboration and innovation. As such, it will allow you to find the perfect partnership,
- All businesses that are members of the Mauritius Africa Fintech Hub are vetted by the team and introductions can be arranged if collaboration is desired,
- Members of the Hub, particularly corporate and FSP members, will be invited to roundtable events with regulatory and governing bodies to help inform future Fintech regulation and processes,
- The Mauritius Africa Fintech Hub can assist with setting up innovation labs to help fast-track the development of specific products or solutions if required and viable, and
- Currently there are a number of successful fintech businesses running their operations for the African market from Mauritius, providing a pool of knowledge to draw from in terms of collaboration and innovation.