Mauritius IFC: Your Ideal Hub for Private Equity and Fund Management
The Business Forum on Private Equity was held on 8th December 2021, at the Dubai Expo 2021, during the Finance and Investment Week. The Honourable Mahen Kumar Seeruttun, Minister of Financial Services and Good Governance was present. In his keynote speech, he spelt out that the financial services sector of Mauritius contributes to 13% of the Gross Domestic Product. This figure is expected to double by 2030 and there is no doubt this sector is increasingly attracting foreign investors to channel their funds through the Mauritius International Financial Centre (Mauritius IFC) to invest in Africa, Asia and the Middle East.
The Minister further emphasized that over the last 15 years, Mauritius has established itself as a trusted, stable and secured jurisdiction for the setting up and administration of funds. It is widely recognised by fund managers and is commonly used for structuring international investments, particularly into Africa and Asia. Boasting over a thousand funds with significant asset under management and a sizeable number of them from development finance institutions and sovereign wealth funds, Mauritius is noted as the gold standard for fund management and administration.
He further added that Mauritius is classified as a privileged destination for foreign nationals to invest, work and live whilst it promotes openness to foreign investors, skills, expertise and talents to become a high-income economy. The island offers a range of investment opportunities in different sectors. Its ease of doing business ranking and stable governance creates the perfect business climate possible. Funds set up in Mauritius benefit from favourable tax regimes and have access to the countries extensive network of Double Taxation Avoidance Agreements and Investment Promotion and Protection Agreements. There are also no exchange controls in force and funds can be repatriated freely.
Furthermore, he commented that Mauritius offers a range of investment opportunities in numerous sectors which is sophisticated, transparent and well-regulated international financial centre with a conducive ecosystem and also offers a complete range of financial products ranging from global funds, treasury management centres, private equity, family offices and trusts. Other factors that have contributed to Mauritius’s success as a fund hub include the quality and flexibility of its legislation, the strength of its legal system and regulatory framework. In this context, Mauritius has recently revamped its Special Purpose Fund Regime this year with a view to make it more competitive and attractive. The New Special Purpose Fund (SPF) which was launched this year is expected to broaden the country’s offering to international investors who are looking for an investment hub that adheres to best international practices and the highest levels of transparency. Mauritius as an IFC of repute is constantly uplifting its level of service towards its licensees in terms of business facilitation and ease of doing business.
He stated that in the midst of the current pandemic and other challenges shaking economies, the search for a safe and stable destination for funds has become crucial for investors and Mauritius is one of the safe destination. The Government of Mauritius is more than ever committed to grow the financial services sector and ensures that every branch of this sector has the opportunity to flourish and every operator has the necessary support to compete globally and participate in the economic and financial development of Mauritius.