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Companies Act 2001- Strategic Highlights

In line with international best practices, the law provides a modern vehicle for domestic and international investors to invest in and from Mauritius.

In line with international best practices, the law provides a modern vehicle for domestic and international investors to invest in and from Mauritius. 

The Act provides for a core statement of company law that applies to all companies whether domestic or those with a global business licence.

NEW BUSINESS – APPROPRIATE DOMESTIC STRUCTURE

What type of entities can be incorporated by the Registrar of Companies in Mauritius?

One who wishes to set up an entity in Mauritius should like to consider the following options:

Is a Public Company appropriate for the proposed business or the setting up of a Private Company best suits the vision of one’s business?

Basically, most businessmen start by setting up a Private Company with much less than 25 shareholders. Then if the number of shareholders increases to 25 or more, the Company automatically falls under the category of a Public Company, where the individual has the obligation in accordance to the Companies Act 2001 to make an application to the Registrar of Companies for the Company to be converted from a private company to a public company.

The following is one important aspect of a Private Company:

1.A private company is limited to 25 shareholders and cannot offer shares to the public. Companies can have a limited or unlimited life.

As per the Companies Act, one also has to decide on the following options:

  • 2. To set up a “Company limited by guarantee” means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.
  • 3. To set up a “Company limited by shares” means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
  • 4. To set up a “Company limited by shares and guarantee” which entails the above both characteristics.
  • 5. To set up an “Unlimited company” means a company not having any limit on the liability of its members.

To make it simpler, below are the tabular distinctions between the types of structures to enabling businesses to make informed decisions commensurate with their business objectives:

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Contribution sociale genéralisée replacing the national pension fund in mauritius

Effective from 1 September 2020, contribution to the National Pension Fund (“NPF”) has been abolished and replaced by the Contribution Sociale Genéralisée (“CSG”)

Effective from 1 September 2020, contribution to the National Pension Fund (“NPF”) has been abolished and replaced by the Contribution Sociale Genéralisée (“CSG”). Pursuant to the Contribution Sociale Genéralisée Regulations 2020 (“CSG Regulations”), every participant is liable to CSG every month. Contribution to CSG is calculated as follows:

1 “domestic service” means employment in a private household and includes employment as a cook, driver, gardener, garde malade or maid.

Participant means a person:

i. who enters into, or works under an agreement or a contract of apprenticeship, other than a contract of apprenticeship regulated under the Mauritius Institute of Training and Development Act, whether by way of casual work, manual labour, clerical work, or otherwise, and however remunerated;

ii. employed on a part-time or full-time basis, whether in a position which is of permanent nature or on a contract of fixed duration; and

  1. includes

a public sector employee;

a share worker as defined in the Workers’ Rights Act 2019;

a non-citizen employee;

a person employed in the domestic service;

a person aged 65 and above;

a person performing atypical work as defined in the Workers’ Rights Act 2019;

an executive director of a company;

a self-employed; but

  1. does not include

a non-citizen employee employed by an export manufacturing enterprise who has resided in Mauritius for a continuous period of less than 2 years, including any period of absence which does not exceed 9 consecutive weeks or during which he maintains a residence in Mauritius;

a non-citizen holding a work permit and employed by a foreign contractor engaged in the implementation of a project which is funded by a foreign State up to not less than 50% of the estimated project value, from grant or concessional financing, as the Minister may determine;

a person taking part in a training scheme set up by the Government or under a joint public-private initiative with a view to facilitating the placement of jobseekers in gainful employment;

a non-executive director of a company

CSG Reporting Obligations

Penalty under CSG

It is the obligation of the employer or the self-employed, as the case may be, to retain both participant’s and employer’s CSG contributions and remit same to the MRA.

A penalty of 10% applies on any unpaid CSG. The penalty is capped at a maximum of 25% of the amount of the additional CSG claimed under an assessment.

Any unpaid CSG is also subject to interest of 1% per month or part of the month during which the CSG remains unpaid.

An employer is not entitled to recover any arrears of CSG, penalty and interest subsequently paid to the MRA from the participant.

Cessation of business

Written notice should be submitted to the MRA where an employer becomes aware that he will cease to carry on any trade, business or occupation, whether voluntarily or otherwise, giving particulars of the cessation date.

The employer should submit its monthly or annual CSG return and pay any CSG or penalty payable with 15 days from cessation date.

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Security Token Trading Systems

The Financial Services Commission (FSC) has, on 15 June 2020, issued its guidance notes concerning the implementation of a common set of standards for Security Token Offerings (STO)

The Financial Services Commission (FSC) has, on 15 June 2020, issued its guidance notes concerning the implementation of a common set of standards for Security Token Offerings (STO) and the licensing of Security Token Trading Systems in Mauritius in an attempt to position Mauritius as a regional hub of sound reputation in the field of Fintech. The guidance notes also highlight the requirements to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws and codes, data protection laws, and implementation of good market practice for an efficient, transparent and integrated financial market.

Why use Security Tokens to raise capital? 

STOs are seen as lower risk because the securities laws that security tokens have to comply with often enforce transparency and accountability, compared to an Initial Coin Offering (ICO). A security token will also be backed by a real-world asset, which makes it a lot easier to assess whether or not the token is priced fairly in relation to the underlying asset.

STO is also more cost-effective than Initial Public Offering (IPO). With IPOs, the companies would typically pay high brokerage and investment banking fees to get access to a deeper investor base. STOs would still need to pay lawyers and advisors, but they offer more direct access to the investment market and, therefore, typically will not have to pay large fees to investment banks or brokerages. The post-offering administration for STOs is also less cumbersome and cheaper than with traditional IPOs.

Fractional ownership and the ability to trade 24/7 bring additional liquidity to the market, especially with traditionally illiquid assets, such as scarce paintings, property and collectibles.

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Mauritius: P2P lending now has its own specific licence

On 31 August 2020, the Mauritian Financial Services Commission (“FSC”) published the licensing criteria for Peer-to-Peer (“P2P”) lending. Prior to this, P2P Ooperators were operating under the regulatory sandbox licensing.

On 31 August 2020, the Mauritian Financial Services Commission (“FSC”) published the licensing criteria for Peer-to-Peer (“P2P”) lending. Prior to this, P2P Ooperators were operating under the regulatory sandbox licensing.

The Financial Services (Peer to Peer Lending) Rules 2020 came into force on 15 August 2020.

What is P2P lending?

P2P lending is an emerging Fintech practice that enables a person to lend funds through an online portal or electronic platform, whereby a P2P operator facilitates the access to finance by matching borrowers and lenders on its online platform.

The three important pillars of P2P lending

  1. A platform, operated by a P2P operator that is a corporate body established in Mauritius;
  2. A borrower with a detailed project that needs financing; and
  3. A lender agreeing to provide funds in its own name.

How does P2P lending operate?

A P2P operator will consider a request to borrow from any person provided that the funds being sought by the person are applied for to finance a project. The P2P website will prominently disclose a description of the borrowers’ project and funds will be made available to borrowers only after the required total funding has been pooled or raised for any project. This means that if the borrower does not obtain 100% of the funds, it does not get any of the money.

Once a lender agrees to provide funds in its own name, the lender and the borrower enter into an agreement through a P2P lending platform operated by a P2P operator. P2P operators must provide a cooling off period of two business days to borrowers and lenders during which they may cancel their written agreements without the imposition of any penalty.

Limits and restrictions of P2P lending

  1. The borrower

The following entities cannot apply for a P2P lending licence:

  • A collective investment scheme and closed-end fund, as defined in the Securities Act 2005;
  • A public listed entity or any of its subsidiaries;
  • A person that proposes to access a P2P lending platform for further lending to other persons; and
  • Any other scheme as may be determined by the FSC.
  1. The lender

The activities of a lender on a P2P lending platform must exclude deposit taking business, in any form.

  1. The P2P operator

The P2P operator has no carte blanche in regards to the activities it can undertake on the P2P lending platform. It is restricted from carrying out the following activities in its own name:

  • Deposit taking business, in any form;
  • Lending; and
  • Providing or arranging for any credit enhancement or guarantee.
  1. The amount
https://www.ensafrica.com/Uploads/1%20-%20borrower%20lender.JPG

This limit does not apply to sophisticated investors (as defined in the Securities Act 2005) when they lend in any other currency through P2P operators to borrowers that are not resident in Mauritius.

It is to be noted that the reimbursement period for the lending through P2P lending platforms must not exceed 84 months.

Obligations of the P2P operator

There is an exhaustive list of obligations that the P2P operator has to fulfil:

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Highlights of the Mauritius Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) (Miscellaneous Provisions) Act 2020

This highlight sets out the changes to the laws brought by the Act which are relevant to the Global Business sector.

To align the Mauritius International Financial Centre to international norms and standards pertaining to AML/CFT and meet the Financial Action Task Force (FATF) requirements, the Anti-Money Laundering and Combatting the Financing of Terrorism (Miscellaneous Provisions) Act 2020 (the “Act”) was approved by the Mauritian Parliament and came into force on 9 July 2020. This highlight sets out the changes to the laws brought by the Act which are relevant to the Global Business sector.

Changes to the Companies Act

  • Access to beneficial ownership information – Companies registered in Mauritius were already required to disclose information on their beneficial owners (BO) or ultimate beneficial owners (UBO) to the Registrar of Companies and record same in their share register where the shares were held by a nominee shareholder. The Act has further expanded the definition of the term ‘nominee shareholder’ to put emphasis on those BO/ UBO who exercise their right through the nominee shareholder indirectly through the agency of one or more persons.
  • Beneficial ownership information shall be lodged with the Registrar (i) at the time of incorporation of a company; (ii) at the time of registration of a foreign company; (iii) at the time of registration by way of continuation of a company; (iv) on filing of the annual return of a domestic company; (v) in the case of a foreign company, on filing the financial statements of the company; (vi) upon any change, including transfer, in the shareholding of a company; (vii) at the time of an issue of shares. Upon any change, including transfer, in the shareholding of a company or at the time of an issue of shares, beneficial ownership information shall be filed to the Registrar within 14 days from the date by which any entry or alteration is made in the share register.

This obligation will apply where shares of the company are held by a nominee shareholder.

  • The Act also requires designation of an officer (ordinarily resident in Mauritius) to provide, upon request by any competent authority, all basic information and beneficial ownership information of the company. The Registrar shall be notified upon designation or change of the officer, within 14 days.
  • In addition to the name and registered address of a private company holding a Global Business License (GBL) or an Authorised Company, a person may on payment of a prescribed fee have access to the proof of incorporation, legal form and status of the company and its basic regulating powers and list of directors at the Registrar of Companies office.
  • Failure to comply with the requirement to furnish beneficial ownership information to the Registrar of Companies shall amount to an offence and shall, on conviction, be liable to a fine not exceeding MUR 300,000 rupees. The Registrar of Company may further strike off a company if it fails to disclose beneficial ownership information.
  • The terms BO/UBO have been extrapolated under the Companies Act and are extended to the Foundation Act, Limited Liability Act and Limited Partnership Act. Beneficial ownership information pertaining to limited liability partnerships, limited partnerships and foundations, shall be disclosed to the Registrar of Companies upon the incorporation and registration of any such entity, and at the time of making certain mandatory filings. This obligation will apply where shares/beneficial interest of the partnerships/ foundations are held by a nominee.

Changes to the Financial Intelligence and Anti-Money Laundering Act

  • The timeline for financial institutions and reporting person for filing a suspicious transaction report to the Financial Intelligence Unit (FIU) has been reduced from 15 days to 5 working days after the suspicion arose. Failure to do so shall be an offence and shall, on conviction, be liable to a fine not exceeding MUR one million rupees (USD 25000) and to imprisonment for a term not exceeding 5 years.
  • The FIU has been empowered to issue guidelines to auditors, reporting persons and internal controllers of credit unions.
  • New provisions have been enacted to facilitate exchange of information among regulatory and supervisory agencies in Mauritius, further regulate sectors such as jewellery, real estate, gambling and cooperative societies for AML/CFT purposes, increase the fines and penalties relating to AML/CFT offences and propounding a risk-based approach to supervision.

Changes to the Financial Services Act (FSA)

  • Section 23 of the FSA has been amended to provide that approval of the Commission shall not be required in respect of the issue or transfer of non-voting shares of CIS or CEF and reporting issuers that do not hold a financial services licence but whose securities are listed on a Securities Exchange in Mauritius.
  • The Commission can carry out onsite inspections on the business premises of a licensee or such other place at its discretion and the frequency for the on-site inspections shall be determined but not limited, by the money laundering or terrorism financing risks present.
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Mauritius Island’s Anti-Money Laundering and Combatting the Financing of Terrorism (miscellaneous provisions) Act 2020: what’s new?

Financial Intelligence and Anti- Money Laundering Act amended

Section 2

“legal person” –

(a) means any entity, other than a natural person; and

(b) includes a company, a foundation, an association, a limited liability partnership or such other entity as may be prescribed

“suspicious transaction”,

– (a) gives rise to a reasonable suspicion that it may involve – (i) the laundering of money or the proceeds of any crime; or (ii) funds linked or related to, or to be used for, the financing of terrorism or proliferation financing or, any other activities or transaction related to terrorism as specified in the Prevention of Terrorism Act or under any other enactment, whether or not the funds represent the proceeds of a crime

3. Money Laundering

A reporting person who fails to take such measures as are reasonably necessary to ensure that neither he, nor any service offered by him, is capable of being used by a person to commit or to facilitate the commission of a money laundering offence or the financing of terrorism shall commit an offence

19E. Duty to provide information

In section 19E, in the heading, by adding the words “for purpose of conducting risk assessment”;

Companies Act 2001

Section 2

nominee”, by inserting, after the words “some other person either directly or” and “a person is the nominee of another”, the words “indirectly” and “legal or natural”, respectively

“beneficial owner” or “ultimate beneficial owner” –

(a) means any natural person who ultimately owns or controls a company or the natural person on whose behalf a transaction or activity is being conducted in relation to a company; and

 (b) includes –

(i) the natural person who ultimately owns or controls a company through :

 (A) direct or indirect ownership of such shares in such percentage as may be prescribed

(B) voting rights;

(C) ownership interest; or

(D) control by other means; (ii) where no natural person under paragraph (i) is identified, or if there is any doubt that the person identified is the beneficial owner, the natural person who controls the company in the manner one company controls another company under section 5; (iii) where no person under paragraphs (i) and (ii) is identified, the natural person who acts as executive director or has equivalent executive powers;

Section 14. Inspection and evidence of registers

in subsection (8), by adding the following new paragraphs, the comma at the end of paragraph (b) being deleted and replaced by a semicolon and the word “and” at the end of paragraph (a) being deleted – (c) proof of incorporation; (d) legal form and status; (e) basic regulating powers; and (f) list of directors

Section 23: Application for incorporation

A declaration regarding beneficial ownership which shall be disclosed in accordance with section 91(3A)(c).

the full name and the usual residential address of the beneficial owner or ultimate beneficial owner, if any; (subsection (2), by inserting, after paragraph (d), the following new paragraph)

91. Company to maintain share register

The information referred to in subsection (3)(a)(ii) shall be lodged with the Registrar through CBRIS or such other electronic system or in such other manner as the Registrar may approve –

(i) at the time of incorporation of a company;

(ii) at the time of registration of a foreign company;

(iii) at the time of registration by way of continuation of a company;

(iv) on filing of the annual return of the company;

 (v) in the case of a foreign company, on filing the financial statements of the company;

 (vi) upon any change, including transfer, in the shareholding of a company; (vii) at the time of an issue of shares

(d) The information referred to in paragraph (c)(vi) and (vii) shall be filed with the Registrar within 14 days from the date by which any entry or alteration is made in the share register

190. Company records

  • Notwithstanding any other enactment, a company shall authorise at least one officer, who shall be ordinarily resident in Mauritius, to provide, upon request by any competent authority, all basic information and beneficial ownership information of the company

(b) A company shall, within 14 days of an authorisation under paragraph (a) or of any change of an officer under paragraph (a), notify the Registrar, in such form as the Registrar may approve, the name and particulars of the officer.

(c) In this subsection – “basic information”, in relation to a company means –

(a) the company name, proof of incorporation, legal form and status, the address of its registered office, basic regulating powers, a list of its directors; and

(b) a register of its shareholders or members, containing the names of the shareholders and members and number of shares held by each shareholder and categories of shares, including the nature of the associated voting rights; “competent authority” – (a) means a public body responsible to combat money laundering or terrorist financing; and

  • (b) includes an investigatory authority; “investigatory authority” has the same meaning as in the Financial Intelligence and Anti-Money Laundering Act

281. Balance Sheet

(5A) Any information regarding the beneficial ownership of a foreign company shall be disclosed in accordance with section 91(3A)(c)

Financial Services Act

43A. Frequency of on site inspections

(1) The frequency of an on site inspection carried out under section 43 shall be determined on the basis of, but not limited to –

 (a) the money laundering or terrorism financing risks and policies, internal controls and procedures associated with a licensee, as assessed by the Commission;

(b) the money laundering or terrorism financing risks present in Mauritius; and

(c) the characteristics of the licensee and the degree of discretion allowed to the licensee under the risk-based approach implemented by the Commission. (2) The Commission shall review the assessment of the money laundering or terrorism financing profile of a licensee as and when there are major developments in the management and operations of the licensee.

Foundations Act

36. Records to be kept

Any information regarding the beneficial owner or ultimate beneficial owner of a Foundation shall be lodged with the Registrar – (a) at the time of registration of the Foundation or foreign Foundation, as the case may be; (b) at the time of registration by way of continuation of the Foundation

New sections added:

 A Foundation that fails to comply with subsection (1)(d) or (e) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 300,000 rupees.

 (b) A Council member or former Council member who fails to comply with subsection (1)(d) or (e) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 300,000 rupees.

(8) Any secretary or former secretary who fails to comply with subsection (5) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 300,000 rupees

39. Removal from register

(4A) Where a Foundation, Council member, former Council member, secretary or former secretary, as the case may be, has failed to comply with section 36(1)(d) or (e) or (5), the Registrar shall remove the name of the Foundation from the register.

50. Offences committed by Foundation

by inserting, after subsection (2), the following new subsection

 (2A) An offence referred to in section 36(1)(d) or (e) or (5) shall not be compounded unless the Foundation or Council member or former Council member, as the case may be, agrees in writing to – (a) pay an amount, acceptable to the Registrar, not exceeding the maximum penalty imposable under this Act for that offence

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Mauritius: the number one jurisdiction for investment into Africa

There has been a considerable flow of direct investment to Africa during the last decade, in which Mauritius has played a considerably large role.

Some years back, the IMF forecasted that Africa will grow to become the home of several of the fastest growing economies in the world and that the average African economy is going to take the lead from Asia. Besides minerals and energy, a broad base of sectors are supporting the economic growth of this region. These include agriculture, technology, telecommunications, media and financial services. These industries are significant foreign direct investments and a large portion of this is from private equity investments. There has been a considerable flow of direct investment to Africa during the last decade, in which Mauritius has played a considerably large role.

Benefits of establishing a company in Mauritius

The island, found in the Indian Ocean, is considered as the number one jurisdiction for investment into Africa. Foreign companies can benefit from several advantages when establishing a business in Mauritius. First of all, there are the traditional advantages that an offshore financial centre offers. These are:

  • no capital gains tax,
  •  no withholding tax,
  •  no exchange controls,
  • and free repatriation of profits and capital, among others.

Moreover, in Mauritius, they will also benefit from an extensive network of treaties and double taxation avoidance agreements. So far, the country has concluded 46 tax treaties and is party to a series of treaties under negotiation. The treaties currently in force are with jurisdictions such as France, the UK, Germany, United Arab Emirates, India and South Africa, among others. 6 treaties are awaiting ramification, 5 are awaiting signature and 20 others are being negotiated.

Tax savings: Mauritius v/s other African states

In some parts of Africa, Capital Gains tax are imposed. These are generally levied at a rate ranging from 30-35%. However, foreign companies in Mauritius do not have to worry about that thanks to the Double Taxation Agreements established in the country. These restrict taxing rights of capital gains to the country of the seller of the assets. Considering the fact that there is no capital gains tax in Mauritius, a company registered in the island is able to potentially make significant tax savings.

Additionally, most of the states of Africa impose some withholding tax on dividends paid out to non-residents. These can vary between 10% and 20%. Nonetheless, the Double Taxation Agreements (DTAs) in force in Mauritius limit withholding taxes on dividend. The treaty rates are generally 0%, 5% or 10%. Therefore, depending on from which country the investing country is, there is the possibility of potential tax savings. With regards to capital gains tax, the Double Taxation Agreements guarantee the maximum withholding tax rate if ever there are changes in the fiscal policy in the countries on investment.

If you have a question or you wish to establish a company in the country, do not hesitate to get in touch with one of our agents. Our firm has contributed to the economic and financial growth of several individuals and companies. It has proven to be a reputable company which you can trust.

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Mauritius: why is it an offshore heaven in Africa?

Mauritius has undergone through several improvements and its per-capita income of $10,500 is already way ahead of the region’s average of $4,000!

“Mauritius is a gem in the Indian Ocean”. This has been advanced by many experts in the financial sector. The country is striving to become an International financial centre of excellence in the region and to join the league of high-income countries. It has already undergone through several improvements and its per-capita income of $10,500 is already way ahead of the region’s average of $4,000.

The “tax heaven”

Mauritius has branded itself as a ‘tax heaven’ for quite some time. However, following the ‘Mauritius Leaks’ article, the country has decided to overhaul its tax regime and rebrand itself. As such, it revised several rules around both corporate and personal tax rates, indirect taxes and tax administration. For instance, now, an income-tax holiday supports companies setting up e-commerce platforms and peer-to-peer lending operators. Moreover, rules are aligned with global best practices, including attribution of income according to the “arm’s length” principle.

These changes have had immediate results: The Organization for Economic Co-operation and Development has stated that Mauritius’s tax regime doesn’t permit or encourage harmful practices and International Monetary Fund (IMF) named it among the 10 countries holding 40% of global phantom FDI.

A growing economy

It is predicted that the country’s Gross Domestic Product (GDP) will be 4.1% in 2020. Additionally, the government expects that there will be more Foreign Direct Investment (FDI) in the coming years, especially considering the fact that it has moved to the 13th position (up by seven places) in the World Bank’s Ease of Doing Business 2020 ranking, against an overall “weak performance” across Sub-Saharan Africa.

Additionally, it is now at the second position in the Absa Africa Financial Markets Index which measures the continent’s most advanced financial markets.

Opportunities for foreign investment

To make things easier for foreign development and attract more investors, Mauritius has been creating more opportunities for growth. For instance, it is keen on revitalizing tourism, developing the ocean economy, increasing output of renewable energy, enhancing the deployment and adoption of modern technology and building smart cities. It has enacted the Business Facilitation Act, amending 26 legislations designed to spur private investments. This expedites new business launches, eliminates unnecessary license and permit requirements and streamlines customs processes.

Additionally, it wishes to capitalize on the African Continental Free Trade Area (AfCFTA). This aims to provide incentives for foreign investors targeting the continent’s market of 1.2 billion consumers. As such, it is presenting itself as a manufacturing and financial hub and will also help the island deepen its ties with mainland Africa, especially for its banks.

According to the SBM, one of the largest banks in the country, “Mauritius has successfully tapped into new sectors for sustainable growth”. Developments in its fiscal regime has attracted a new breed of investors. In 2018, France was the biggest source of direct investment in the island with inflows amounting to $74.2 million. It was followed by South Africa at $58.4 million and China with $48.1 million. The UK is also gradually increasing its inflows with $25.3 million.

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Mauritius Africa Fintech hub: why should entrepreneurs look into it?

The Mauritius Africa Fintech hub (MAFH) is a network of experts in the fintech industry that work together to help this particular sector progress. Why should entrepreneurs look into it?

The Mauritius Africa Fintech hub (MAFH) is a network of experts in the fintech industry that work together to help this particular sector progress. Financial-technology is booming and it helps several businesses expand their offerings and benefit from the latest technology. The (MAFH) offers its members several opportunities and avenues for growth.

Why should entrepreneurs be interested in fintech?

Considering developments that are taking place and new techs that are being implemented, the current era is perfect to join the fintech sector. Whether you are an expert wishing to look into a new venture or a tech SME, you will surely benefit from this industry. Why? Because you will have the opportunity to present a wide variety of essential financial solutions to the African unbanked population. These range from digital wallets to internet banking, alternative point of sales, mobile financial products and other life-changing solutions. While a huge number of people do not have access to these facilities, they are becoming increasingly important to consumers in our society.

The benefits of joining MAFH

Investing time and money into the fintech industry can be quite scary to some. Things might seem complicated because they disrupt traditional solutions that have been existing for a long time. That is why it is a good idea to join a network such as the Mauritius Africa Fintech hub. You will be able to enjoy the following benefits:

  • You will be able to plug your startup into a network of pan-African, Mauritian governments, corporates, FSPs, investors, fintech businesses and tech experts.
  • You will receive help to deal with the various regulations, such as regulatory sandbox licences and business registration, in place.
  • You will have access to resources and knowledge from other tech businesses that form part of the ecosystem.
  • You will be able to become acquainted and communicate with potential investors and other funding sources.
  • You will have the opportunity to attend roundtable events with regulatory bodies.
  • You will benefit from Mauritian investor agreements that have been established. These can act as buffers for businesses looking to enter new growing African markets.
  • You will benefit from free workshops with regulators, government representatives and other legislative decision-makers.
  • You will be able to take part into innovation labs run by corporates of MAFH itself and
  • You will have free office space in the MAFH building even if you do not live in Mauritius.

Why do entrepreneurs choose to work in Mauritius?

Setting up a business in Mauritius offers SMEs several advantages. It is the ideal location because of its strong reputation or safety. The island has several Investment Promotion and Protection Agreements (IPPAs) in place with a number of African states. Moreover, it has an International Financial Centre, which guarantees its reputation for safety. Additionally, The Mauritian business world is very famous for its corporate governance culture as well as its stability. As such, it is the ideal sandbox environment for anyone who is new in this industry.

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