- July 19, 2023
- Posted by: Aurélie
- Category: Mauritius
A picturesque island nation nestled in the Indian Ocean, a gateway to Africa and Asia, Mauritius is a particularly attractive destination for foreign investors seeking new ventures. Special Economic Zones (SEZs) are one such area they should capitalize on, not only to foster growth but also to benefit from a range of incentives and benefits. Let us explore the reasons why Mauritius’ SEZs are a good option for investors.
If you are an entrepreneur seeking new market frontiers, an established business looking to expand, or an investor seeking attractive returns, Mauritius’ SEZs are a good place to get started. With a strong focus on growth and innovation and a strategic foothold in regional and international markets, Mauritius has successfully attracted diverse industries from around the globe in the past decades. But first things first! What does it entail?
By definition, a Special Economic Zone (SEZ) is a designated geographical area that offers special economic regulations, incentives, and infrastructure to attract domestic and foreign investments. Mauritius’ SEZs have been established with the aim of promoting industrialization, economic diversification, job creation, and boosting overall economic growth. It’s worth noting that they operate under a distinct regulatory framework separate from Mauritius’ general economic laws and regulations. This is why businesses operating within SEZs are granted certain exemptions and benefits.
Some of the incentives and benefits provided by SEZs to foreign investors include tax breaks, customs duty exemptions, streamlined administrative procedures and simplified regulations. Companies that intend to hire locally also benefit from relaxed labor laws.
Mauritius’ SEZs can boast a developed and modern infrastructure, including industrial parks, utilities, and other supporting facilities, designed to meet the specific needs of businesses operating within the zone and enhance their operational efficiency.
SEZs usually focus on specific industries or sectors, such as manufacturing, technology, logistics, research and development, tourism, and financial services, in order to promote specialization and create clusters of related businesses. Moreover, through preferential trade agreements with other regions, they can facilitate market access for foreign investors. This means that you will be able to reach broader markets more efficiently.
Mauritius’ Special Economic Zones have been designed to attract not only domestic but also foreign investments. They include the following:
The Mauritius Freeport, a world-class logistics and distribution hub providing various services, such as warehousing, value-added activities, global trade facilitation, and many others.
The Jin Fei Economic Trade and Cooperation Zone, endowed with modern infrastructure and focusing on industries such as light manufacturing, high-tech industries, and logistics.
The Medine Economic Zone, which supports and promotes industries such as light manufacturing, agro-processing, and technology-driven sectors.
The Mont Choisy Smart City, a mixed-use development that lays emphasis on innovation, sustainability, and quality of life through a range of economic activities, including knowledge-intensive industries, financial services, and high-value tourism.
The Côte d’Or Smart City, a rather recentdevelopment focusing on knowledge-intensive and creative industries, technology, and innovation.
By choosing Mauritius’ Special Economic Zones (SEZs), foreign investors are entitled to a range of benefits, particularly in terms of taxes. Indeed, companies set up in a Special Economic Zone are eligible for a flat 3% corporate tax rate for their first 8 years of operation. Thereafter, they are subjected to a 15% tax rate. What’s more, companies operating in these zones are exempt from duty taxes when importing raw materials, equipment and machinery. The exportation of finished goods and services is also exempt from export taxes and customs duties.
Another significant advantage of investing in Mauritius’ SEZ is the streamlined red tape, which makes it easier for the setting up of businesses and the start of operations. In addition, the Mauritian intellectual property laws ensure that foreign businesses enjoy a secure environment for their trademarks, innovation and copyrights.
Besides, foreign companies operating within the SEZ framework can access various services, including support for business development, incubation centers, as well as training and development programs.
Foreign investors can also benefit from Mauritius’ preferential trade agreements, especially within the African market, which allows for expanding their opportunities and customer base. As a reminder, the island’s strategic location provides easier access to dynamic markets not only in the African region but also in Asia and the Middle East.
Of course, conditions to be metand procedures, as well as benefits, will likely vary depending on the investment project and the chosen SEZ. To get the most up-to-date information, get in touch with Blue Azurite now. Our team of experts will assist you on every step, from choosing your SEZ to building up your investment project.