- November 7, 2023
- Posted by: Aurélie
- Category: Investment
Over the past decades, Mauritius has become a favorite destination for foreign investors seeking new lucrative opportunities overseas. Besides its incredible natural landscapes and vibrant cultural heritage, the island nation has a lot to offer to anyone looking to invest and settle here. Let’s look at the factors that make Mauritius a great place to grow a flourishing business in.
Located in the Indian Ocean, Mauritius is often described as being located at the crossroads of Africa and Asia. This means that the island serves as a bridge for international trade in the region. Foreign investors can thus tap into this key position to penetrate regional and global markets for greater opportunities. Needless to say, its proximity to various emerging markets has enabled it to sign trade agreements with several countries in Africa and elsewhere, which can be quite beneficial for your business, depending on the company structure you are choosing.
Political and economic stability is crucial for foreigners looking to start new endeavors overseas. It’s worth noting that the Mauritian economy has remained robust and dynamic amid recent crises, including the COVID-19 pandemic and global inflation. The island boasts a diversified economy with sectors such as tourism, financial services, technology, and agriculture, offering a broad spectrum of investment opportunities. Besides, the government consistently introduces new policies and initiatives to encourage and support foreign investment. Being a well-established democratic republic, Mauritius also showcases political stability, which demonstrates its reliability and assurance among foreign investors.
Mauritius has established a set of investor-friendly regulations, providing legal and financial structures that protect and promote the interests of foreign investors. In fact, the country offers a wide range of investment facilitation measures, including preferential tax treatments, ease of business establishment, protection of intellectual property rights, and a robust legal system that upholds transparency and fairness. This supportive regulatory environment reduces bureaucratic hurdles, creating a conducive atmosphere for foreign investors to engage and thrive in various sectors of the Mauritian economy.
To attract and support foreign investment, Mauritius has implemented various measures, including tax incentives, free trade agreements, bilateral investment treaties, etc. The current system provides a transparent and simplified process for business incorporation, allowing for swift establishment and operation. These various initiatives, such as the Investment Promotion Act, guarantee non-discrimination between local and foreign investors. The Economic Development Board (EDB) also offers support and guidance to foreign investors looking to grow their business on the island. It’s worth noting that companies incorporated in Mauritius benefit not only from a low corporate tax rate but also from tax exemptions on dividends and capital gains.
The government has been making considerable efforts to enhance the Mauritian technological infrastructure to attract foreign investors. These efforts include improvements in telecommunications, internet connectivity and digital infrastructures. Technology parks, incubators, and accelerators have also emerged across the island, fostering the growth of a vibrant startup culture. Moreover, Mauritius possesses a highly skilled and tech-savvy workforce foreign investors can tap into to boost their activities.
In the past years, Mauritius has also established itself as a major financial services hub in the region thanks to its robust financial sector, reputable banking system, and well-regulated financial services framework. All these factors make it an attractive destination for fintech companies and startups. Besides, the island provides a conducive environment for fintech innovation and development, allowing startups to explore and benefit from financial services, blockchain technology, and digital currencies.
Mauritius provides a supportive entrepreneurial ecosystem marked by the emergence of various structures like incubators, accelerators, and coworking spaces intended for startupers. These entities serve as pillars for foreigners considering new ventures on the island. They provide essential mentorship, guidance and necessary resources tailored for startups. Foreign entrepreneurs can also tap into such collaborative environments not only for networking opportunities but also to find funding for their potential businesses.
As mentioned above, thanks to its strategic location and economic dynamism, Mauritius benefits from a network of bilateral and multilateral trade agreements. One example is its membership in various economic blocs, such as the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). This means foreign investors considering Mauritius can significantly gain greater access to African and international markets. Mauritius is also a signatory of the African Continental Free Trade Area (AfCFTA), which further amplifies the potential market reach for startups.
You must be aware by now that English is the official and administrative language in Mauritius, although other languages, such as French and Mauritian Creole, the mother tongue, are widely spoken. This means that, as a foreign investor, you will have access to a multilingual workforce to grow your business. It’s also worth noting that the island has a highly qualified workforce from local and international higher education institutions, which means they can adapt to diverse work environments.
Beyond all the above-mentioned benefits, Mauritius offers an exceptional quality of life. With its breathtaking natural beauty, stunning beaches, cultural diversity, pleasant climate all year round, and affordable cost of living, the island has captivated foreigners from all around the world, including foreign investors, who chose to call it home. For those considering a move with their family, Mauritius also boasts a selection of international schools offering quality education and a wide range of child-friendly and family-friendly leisure activities.
If all these reasons have convinced you to choose Mauritius to start your new investment venture, it’s high time to kickstart your project by consulting experts. Blue Azurite is here to guide you from deciding on your type of investment to choosing your business structure and beyond. Contact us now for more information.