Global Treasury Activities
As much as Africa is today poised as an attractive investment destination, Mauritius is equally evolving as a Regional Treasury Centre witnessing a number of corporates setting up offices and treasury activities, and using the jurisdiction as a platform to access Africa.
Mauritius is evolving as a Regional Treasury Centre
As much as Africa is today poised as an attractive investment destination, Mauritius is equally evolving as a Regional Treasury Centre (RTC) witnessing a number of corporates setting up offices and treasury activities, and using the jurisdiction as a platform to access Africa.
Mauritius offers innovative products such as Liquidity Management platform. This tool uses the latest technology to centralise a company’s treasury activities across multiple countries, improving operational efficiencies and enhancing competitiveness. By establishing an RTC in Mauritius, international investors can align their treasury policies, improve the visibility of information and fund flows, as well as, significantly reduce the resources necessary for treasury processes. As a result, they can significantly improve cash management efficiencies, capital optimisation and risk management.
Following the enactment of the Finance Act 2012, the Financial Services Act 2007 was amended to include global treasury activities.
Treasury Management
The Global Treasury Activities licence granted by the Financial Services Commission, Mauritius (FSC) authorises multinational companies to set up or relocate their regional treasury management functions to Mauritius, thus allowing them to benefit from a five-year tax holiday and various advantages of operating from the jurisdiction. Companies holding a Global Treasury Activities licence are expected to provide at least three treasury services to three or more related companies, including but not limited to the following:
- arrangements for credit facilities, including credit facilities with funds obtained from financial institutions in Mauritius or surpluses of network companies;
- arrangements for derivatives;
- corporate finance advisory;
- credit administration and control;
- factoring, forfeiting and re-invoicing activities;
- guarantees, performance bonds, standby letters of credit and services relating to remittances; and
- management of funds for designated investments.
In order to be eligible for availing tax holidays, Global Treasury Activities employ 4 full time professionals with at least 1 at senior managerial position and incur annual expenditure of MUR 2 million.
An application for a Regional Treasury Licence shall be accompanied by the information and/or documentation prescribed in the Licensing Criteria which is published on the website of the FSC.