WORLD HINDU ECONOMIC FORUM

Mauritius: Gateway to Africa

www.investmauritius.com

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MAURITIUS

Economic Overview
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ECONOMIC OVERVIEW

GEOGRAPHICAL LEVERAGE

Key Facts
Area: 2,040 sq km (788 sq miles) Population: 1,288,684 (2011) Population density: 632 per sq km Exclusive Economic Zone: 1.9 million km + 396,000 km joint extended shelf with Seychelles Capital: Port Louis Government: Republic established in 1992. Gained independence from the UK in 1968. Official Language: English

Key Indicators GDP Growth: 3.3% (2012) Repo Rate: 4.65% (as at date) Legal System: Hybrid Legal System

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ECONOMIC OVERVIEW

2012 GDP COMPOSITION

Source: Statistics Mauritius

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ECONOMIC OVERVIEW

Ocean Economy

Fisheries Industry
Mauritius is the 3rd main exporter of tuna to Europe and 1st in UK

Port and related services

The Mauritian port handles 99% of total volume of external trade and contributes 2% of national GDP Numerous opportunities: Freeport and logistics, ship chandelling and repairs, ancillary services, bunkering and storage

Ocean-related tourism

Ocean based tourism is a growing segment of international tourism Cruise passengers to Mauritius increased more than twice from 2006 to 2012

Seabed Exploration
Offshore crude oil is the only growing segment of the global oil industry South Indian Ocean is one of the least unexplored region in the world for hydrocarbons and minerals

Marine Renewable energy

Offshore wind farms installed capacity: from 6 GW to 175 GW by 2035 Mauritius pioneering DOWA projects in the region

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MAURITIUS

Doing Business Regime

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DOING BUSINESS REGIME

COMPETITIVE & INVESTOR FRIENDLY INVESTMENT CLIMATE

Taxation

Start Up
Start a business in 3 working days No minimum capital requirement 100% Foreign ownership Homogenised 15% corporate tax Personal Income tax at 15% VAT at 15% 0% Corporate Tax in the Freeport

Political & Legal Environment

No Capital Gains Tax Global Business : max 3%

Social & Political Stability (parliamentary democracy) Modern Legislation & effective regulation

Occupation Permit
Right to Live and Work in

Land & Property Acquisition

Acquisition of property by non-citizen

Exchange Control
Free movement of Capital

Mauritius

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DOING BUSINESS REGIME

INTERNATIONAL RANKINGS & RECOGNOTION

Index of Economic Freedom 2012 Overall Rank

Source: Heritage Foundation

8th Globally 1st in Africa

World Bank Doing Business Survey 2013 Overall Rank Starting a business Protecting investors Paying taxes
Source: World Bank

19th Globally 1st in Africa 14th 13th 12th Best Countries for Doing Business Overall Rank
Source: Forbes

19th Globally 1st in Africa

WHO Air Quality Index Overall Rank

Source: WHO

2nd Globally

Environmental Performance Index

Mo Ibrahim Index 2012 Overall Rank

Source: Mo Ibrahim

Overall Rank

6th Globally 1st in Africa

1st in Africa

Source: World Economic Forum

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MAURITIUS

Mauritius: Manufacturing & Trading Platform for Africa

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MAURITIUS FOR AFRICA

ESTABLISHED MANUFACTURING BASE

Composition of the Manufacturing Sector (2012)

Others include: Paper Products, Rubber plastics products, Basic metals, Non metallic mineral products, Pharmaceutical, Precision and optical instruments, Watches and clocks, Furniture
Source: Statistics Mauritius

Precision Engineering
Automobile and Aircraft components Watches and Jewellery

Health Care
Pharmaceuticals Medical devices and Equipment

Fashion Industry
Designer /branded & up market garments Technical Textiles

Sustainable Development
Biogas

Food Processing
Seafood processing Fruit and Vegetable processing

Seat covers and upholsteries

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MAURITIUS FOR AFRICA

KEY MARKET ACCESS

EPA

AGOA

FTA with Turkey

COMESA

EPA Economic Partnership

SADC

Agreement with EU

FTA Free Trade Agreement

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MAURITIUS FOR AFRICA

MARKET ACCESS : COMESA SADC

SADC

COMESA

19 member states

15 member states

$157 billion
Export Bill

$427 billion
GDP

$152 billion
Import Bill

258 million
Population

430 million
Population

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MAURITIUS FOR AFRICA

1. The goods should be wholly produced or obtained on a Member State;

Goods to be consigned directly from a Member State to a consignee in another Member State and
(a) They have been wholly produced/obtained (b) Have been produced in a Member State using non-originating materials, provided that such material have undergone sufficient working or process in one or more Member States; or (c) There has been a change in the tariff heading of a product arising from processing carried out on the non-originating materials.

2. The goods should be produced in the Member States and the CIF value of any foreign materials should not exceed 60% of the total cost of all materials used in their production; or 3. The value added resulting from the process of producing the goods from imported materials should account for at least 35% of the ex-factory cost of the goods; or 4. The goods should be produced in Member States and be classified or become classified, after the process of production, under a tariff heading other that the tariff heading which they were imported (CTH rule)

Certificate of Origin Rules

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MAURITIUS FOR AFRICA

DEVELOPED PORT & FREEPORT

Duty-Free and VAT free for goods and equipment imported into Freeport zones Access to offshore banking facilities

Freeport Act 2004 BOI acts as Regulatory Body

100% corporate tax exemption

50 % of turnover sales to the local market

Reduced port handling charges

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MAURITIUS FOR AFRICA

ESTABLISHED FINANCIAL INDUSTRY

Functions Retail & Corporate Banking Private Banking & Wealth Mgt Investment Banking Investment Holdings Global Managed Funds Fund Administration Fund Management General Insurance Long term insurance Captives Reinsurance Equities Market Commodities Trading Platform Derivatives Brokerage Houses Accountancy firms Tax & Investment advisers International Law Firms Leasing Companies Present in Mauritius

Functional Groups Banking

Global Business (More Than 26,000 GBCs and over 900 Funds) Insurance

Opportunities exists for:

Capital Markets

Other FIs

Mauritius as the African Capital Raising Centre Banks to set up for Trade Financing Investment Banking Regional Treasury Management Corporate Finance Houses International Legal Services

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Mauritius , A platform for outward investments

THE REGIONAL FINANCIAL PLATFORM OF CHOICE

Mauritius: preferred financial platform for Africa

In 2012, over 50% of new global business companies (GBCs) through Mauritius targeted Africa Leading PEs active in Africa are using Mauritius as their base : Africa Development Bank, Actis, Helios

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MAURITIUS FOR AFRICA

REGIONAL HEADQUARTERS IN MAURITIUS

Tax liability limited to 3% (GBC1 company) No Exchange control

Tax resident in Mauritius 43 DTAAs (18 with Africa) 38 IPPAs (19 with Africa)

Tax Residency

Tax Incentives

Other advantages
Sound regulatory framework Social and Political Stability Multilingual Workforce Proximity to Africa

Regional Headquarter
Expatriate staff allowed Occupation and Residence Permit in 3 days Tax advantage flat 15% income tax

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MAURITIUS FOR AFRICA

INVESTMENT & BUSINESS HUB OF THE REGION: NETWORK OF INVESTMENT PROMOTION AND PROTECTION AGREEMENTS

38 IPPAs 19 IPPAs are with Africa

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Thank You

WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future