Why is Mauritius a great place to do business?

Over the years, we at the EDBM have helped to develop the island of Mauritius into far more than merely a tropical paradise in the Indian Ocean. Today, it is also an attractive and enabling ecosystem that businesses from across the world are growing and flourishing in. Known for its political stability and strong institutional framework, the country is very welcoming to international businesses, offering a favourable regulatory environment that allows for economic development.

Open trade policies have played a vital role in sustaining growth, and helped transform Mauritius from the monocrop economy it once was into a highly competitive, well-diversified, and broad-based economy that businesses from every corner of the globe are flocking to. We are incredibly proud of the economic environment we have created, and delighted that our country is now open for investment in over 10 sectors of activity.

For startups and SMEs from the UK setting up shop in Mauritius, there is plenty to be excited about. Not only is the quality of living excellent, but the island also has a very attractive fiscal regime, with no tax on capital gains or dividends. With access to a qualified and bilingual pool of professionals, UK firms don’t need to worry about a language barrier holding them back, while government incentives and training grants help companies to train and reskill staff, equipping their employees with the knowledge and ability to effectively harness ever-evolving business technology.

As the country’s investment promotion agency, we at the EDB dedicate significant resources towards international companies who are eager to come to Mauritius, and provide high-quality assistance on every step of their journey.

Do you think the UK has any misconceptions about Mauritius that you would like to address?

The UK and Mauritius have a strong and vibrant trading and business relationship. Trade in goods represents the backbone of Mauritius’ relationship with both the UK and EU, both of which are among the most important markets for Mauritian products. Indeed, Mauritius exported £128 million-worth of products to the UK in 2021, accounting for nine percent of the country’s total exports for the year. On top of this, the UK stands as one of the largest sources in foreign direct investment in Mauritius, having already put £9.5 million into the nation’s economy.

Additionally, tourists from the UK love to visit Mauritius, drawn by the island’s many golden beaches, clear blue waters, and stunning vistas. UK visitors account for 14% of total tourism arrival to Mauritius, representing one of the largest market shares of the industry over the years. It’s also worth pointing out that Mauritius is signed up to the UK-Eastern Southern Africa [ESA] Economic Partnership [EPA], which came into force on 1st January 2021. As part of the Agreement, Mauritius has duty free access on all products, meaning visitors can enjoy browsing the country’s many interesting and vibrant boutique shops without the extra expense of duties and taxes.

Mauritius has long been the destination of choice for companies willing to expand their business around the world, in addition to the many holidaymakers who visit the island. Thanks to the country’s political and economic stability, sound legal and regulatory framework, deep pool of English and French-speaking professionals, as well as state-of-the-art infrastructure, Mauritius is a highly attractive location for investors. Despite this, Mauritius is not often thought of as an investment destination in the UK. In fact, many people in the UK are not even aware of the investment opportunities on offer across various sectors in Mauritius. To address this, we are engaged in a number of investment promotion missions to promote Mauritius as a key investment destination, and shout about why companies should consider establishing their business there.

How might startups and SMEs benefit from what Mauritius has to offer and what support from the government might they expect to receive?

The Government of Mauritius is playing an active role in creating an enabling ecosystem for start-ups and tech entrepreneurs. The country has evolved into a hub for innovation and R&D, offering companies from around the world a strong platform to engage in a broad range of rewarding and innovative activities. The efforts made to make Mauritius an attractive place for start-ups and SMEs have seen it climb seven places to reach 45th on the Global Innovation Index [GII], which ranks nations by their capacity for, and success in, innovation. This is up from 82nd place in 2019, and 52nd on the 2022 list, showing that the country is making consistent progress towards becoming one of the world’s leading destinations for innovation.

Further to this, the Government has focused on creating innovative policies and incentives that assist start-ups looking to develop ground-breaking new products and services, while providing the ideal conditions for them to grow and expand. This includes initiatives like the Innovator’s Occupation Permit, which allows foreigners to set up their innovative business in Mauritius, and the e-Commerce scheme, which enables online retailers to conduct commercial transactions through electronic networks, and take advantage of a tax holiday of five years.

If UK entrepreneurs want to learn more about the various advantages Mauritius has to offer them, they need simply to get in touch with us at the EDB. We stand ready and committed to supporting UK start-ups and SMEs in whatever way we can.

What sectors in Mauritius are primed for investment?

Mauritius remains a fairly diversified economy, but a heavy emphasis is being place in certain key sectors. These include the agriculture industry, blue economy, education, financial services, health care & pharma, real estate & hospitality, and life sciences.

These sectors represent lucrative opportunities for investors, and have helped position Mauritius as one of the most appealing investment destinations in the world, in addition to its attractive incentives and benefits. 

Mauritius is a bridge to enter the African continent. Why does it make sense for UK businesses to enter the African market via Mauritius?

Mauritius has numerous agreements in place, comprising both IPPAs and DTAAs with African states. This enables UK investors to benefit from preferential access to various key African markets and hundreds of millions of consumers, in addition to Mauritius itself.

The country’s membership in SADC and COMESA country groups means businesses established there have duty free access to a market of around 500 million people. Therefore, UK companies set up there have the freedom to export to other regional markets without the additional burden of duties and quotas.

Mauritius is also involved in other key initiatives like the Africa Free Continental Free Trade Agreement [AfCFTA], which helps pave the way for a continental market of goods and services in Africa that gives businesses the ability to target over a billion people. Additionally, Mauritius is an active member of the Indian Ocean Commission [IOC], the Indian Ocean Rim Association [IORA], the Cotonou Agreement, and benefits from the Africa Growth and Opportunity Act [AGOA].

Further to this, Mauritius has negotiated Government to Government agreements for the establishment of Special Economic Zones [SEZs] in African countries. This provides investors in Mauritius with a number of incentives to also invest in these SEZs. Join investment opportunities between Mauritian and UK investors could even be considered to operate from the SEZ and export to African countries. Quite simply, there are so many reasons for UK businesses to consider investing in Mauritius, and the African continent more broadly.

The Economic Development Board of Mauritius is holding an investor event at the end of March which you can RSVP for here.