AGENDA Mauritius Economic Overview Doing Business Environment - - PowerPoint PPT Presentation

Mauritius: Investment Destination of Choice

www.investmauritius.com

Ken Poonoosamy, Managing Director Board of Investment Talking Business - Africa Session, WIF 16 October 2014

AGENDA

Mauritius – Economic Overview Doing Business Environment Video on Investment Opportunities

Quick ck Facts ts

Basic details

• Land Mass: 2,040 sq

km

• EEZ: 1.9 M sq km +

396,000 sq km

• Population: 1.2 million
• Main Languages:

English, French, Asian Languages

Political and Legal System

• Independence in 1968
• Republic in 1992
• Parliamentary

democracy with free election every 5 years

• Hybrid legal system

(Common & Civil Law)

• Real GDP growth Rate:

3.5% (Est. 2014)

• Inflation: 4.0 % (Est

2014)

• Repo Rate:4.65%

Economy

A Growi wing ng econom nomy

High Income Economy by 2020 SUGAR MONOCROP

USD 200

TEXTILE TOURISM

USD 1,000

INDUSTRIAL FINANCIAL SERVICES ICT FREEPORT

USD 2,500

SEAFOOD PROPERTY DEVELOPMENT HEALTHCARE & LIFE SCIENCES KNOWLEDGE RENEWABLE ENERGY AFRICA STRATEGY

USD 10,300*

SER SERVICES INNOVATION- DRIV DRIVEN

1970s 1980s 1990s 2010s

2013 3 GDP DP COMPOSIT OSITION ION BY BY IND NDUSTRY TRY SEC ECTO TOR

ECONOMIC OVERVIEW

MAURITIUS

Preferent rential ial Acc Access ss to markets ets

AGOA EPA COMESA SADC

FTA with Turkey

PTA with Pakistan

MAURITIUS

Ac Access ss to Regional ional Mark rkets

Maurit itius us: Manuf ufacturin acturing Platf tfor

• rm

m for Africa ca

Interna national ional Bandwi dwidth dth

BUS USINESS NESS ENVIR VIRONMENT ONMENT

9

Self- adherence to guidelines Start a business in 3 working days Occupation Permit in 3 working days Silent Agreement Principle Facilitate Property Acquisition Ex post control

EASE OF DOING BUSINESS

Ease se of f Doing ng Busi sine ness ss

100% ownership by Non-Citizens One man company allowed No minimum capital required for the setting up of company Online submission and e-payment of notary deeds Favourable Labour Laws Investment Facilitation by the Board of Investment

Maurit itius ius Fi Fiscal l Reg egim ime

• Homogenised 15% corporate tax
• GBC effective tax rate (0-3%)
• Income tax at 15%
• No Capital Gains Tax
• Value Added Tax at 15%

Taxation

• No Foreign Exchange Controls
• No tax on dividends
• No Inheritance Tax
• Free Repatriation of profits and dividends
• Free convertible currency

Exchange controls

Interna national ional Acc Accolades

• lades

Global rankings by international institution

AFRICAN INDEX ON ECONOMIC TRANSFORMATION 1ST OUT OF 21 COUNTRIES WORLD BANK DOING BUSINESS SURVEY 2014 1ST IN AFRICA 20TH OUT OF 189 COUNTRIES

7th consecutive year

MO IBRAHIM INDEX 2014 1ST OUT OF 52 COUNTRIES

8th consecutive year

INDEX OF ECONOMIC FREEDOM 2014 1ST IN AFRICA 8TH OUT OF 178 COUNTRIES GLOBAL INNOVATION INDEX 2014 1ST IN AFRICA 4OTH OUT OF 143 COUNTRIES World Economic Forum Global competitiveness report 2014-2015 1ST IN AFRICA 39th OUT OF 144 COUNTRIES

2nd consecutive

From Preference ences to Global

• bal Competi

petitiv ivene ness ss

Agro- industry Manufacturing Financial Services ICT From Sugar Industry to Cane Industry From a textile manufacturing industry to a design and fashion industry / Vertical Integration / “AGOA” Boom in Property Development Industry (« IRS » et « RES ») ICT/ Outsourcing/Telecommunications / Digital Capacity / Human Resources Construction: Property Development/ Ebène City / Highlands & JinFei, Land Based Oceanic Industry

5% PIB 10% PIB

Tourism

Property/ Construction Emerging Sectors Financial Services

Evolut

• lution

ion of f threshold shold for high-inc income

• me economi

nomies es

Ach chie ievement of

• f the hi

high inc ncome status by y 202 2020

GNI per capita of USD 14,560 in 2020 for Mauritius has been based on the following assumptions:

• an annual growth rate of 0.3% in population and
• a 2% depreciation of the rupee against the USD.

Taking into consideration an average GDP growth rate of 4% over the period 2014-2020, the high income status can be attained in 2020.

• 2'000

4'000 6'000 8'000 10'000 12'000 14'000 16'000 19951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020

GNI per capita (USD)

World Bank Threshold Mauritius

Graduation to High-income status 2020

The he Vi Vision sion: Mo Movi ving ng towar ards ds a Hi High Incom Income & Inclu Inclusiv sive Econo nomy by by 2020 20  Investment in key infrastructure  Generating greater value addition from existing sectors  Setting the foundations of new growth poles  Greater Inclusiveness  Sustainable development

Reali lising sing the potent ntial ial of f Mauri uritius tius as s an Ocean an State

1. Seabed exploration for hydrocarbon and minerals 2. Fishing, seafood processing and aquaculture 3. Deep ocean water applications 4. Marine services 5. Seaport-related activities 6. Marine renewable energies 7. Ocean knowledge cluster

Sectoral

• ral Oppor

portunit unitie ies

• 1.9 million km2:

Exclusive Economic Zone of the Republic of Mauritius

• 396,000 km2:

Extended area in joint management with the Seychelles

• 2.3 million km2:

Total maritime zone

• 303,000 km2:

Further seabed and subsoil extensions submitted to UNCLOS for Rodrigues & Chagos Archipelago

Ocean Economy

Reg egion ional al Fi Financial ncial platf tform

• rm

Capital Raising platform for Africa

Capital Raising Islamic Banking since 2008 Bourse Africa 23 banks Jurisdiction

• f Substance

29

Listed on the SEM

FUNDS

968

Global funds registered

Reg egion ional al Invest estment ment Platf tform

• rm

Platform of Choice for Africa

56% 22% 9% 13%

AFRICA ASIA EUROPE AMERICA

GBC 1 Target Countries

Risk Migration (IPPAs) More than 18,500 GBC structures OECD White- listed Jurisdiction International Arbitration Complete Ecosystem

Ef Efficient ient Risk sk Mi Miti tiga gati tion

• n Platf

tform

• rm

Mininizing Risks while maximizing returns

Member of Multilateral Investment Guarantee Agency (“MIGA”) (World Bank Group)

Provides political risk insurance guarantees to private sector investors and lenders among member countries. Insurance against non-commercial risk.

Investment Promotion and Protection Agreements (IPPAs) 19 with African countries

Free repatriation of investment capital and returns, guarantee against expropriation, Most Favoured Nation rule with respect to treatment of investors Arrangements for the settlement of disputes between investors and the contracting states.

Freight cost subsidy to Africa Mauritius Africa Fund 50% subsidy on the cost of Credit Guarantee Insurance Liberalisation of visa entry for 48 African countries Network of Honorary Consuls 50 Africa Scholarship scheme Export of services and placements

• f Mauritian talents in African

based companies Africa Centre of Excellence Organisation of high level conferences across the continent

• Information on investment opportunities in Africa
• Ongoing tenders in African countries
• Business match making
• Networking platform for investors
• Support investors in their venture in Africa
• Outward investment prospection missions in Africa
• Enhancement of regional bilateral relations
• Business intelligence
• Repository of Information

Afr frica ca Strat ategy gy

VIDEO EO ON INVES ESTMENT MENT OPPOR ORTUNITIES UNITIES

THANK ANK YOU OU