Mauritius: why is it an offshore heaven in Africa?
“Mauritius is a gem in the Indian Ocean”. This has been advanced by many experts in the financial sector. The country is striving to become an International financial centre of excellence in the region and to join the league of high-income countries. It has already undergone through several improvements and its per-capita income of $10,500 is already way ahead of the region’s average of $4,000. The “tax heaven” Mauritius has branded itself as a ‘tax heaven’ for quite some time. However, following the ‘Mauritius Leaks’ article, the country has decided to overhaul its tax regime and rebrand itself. As such, it revised several rules around both corporate and personal tax rates, indirect taxes and tax administration. For instance, now, an income-tax holiday supports companies setting up e-commerce platforms and peer-to-peer lending operators. Moreover, rules are aligned with global best practices, including attribution of income according to the “arm’s length” principle. These changes have had immediate results: The Organization for Economic Co-operation and Development has stated that Mauritius’s tax regime doesn’t permit or encourage harmful practices and International Monetary Fund (IMF) named it among the 10 countries holding 40% of global phantom FDI. A growing economy It is predicted that the country’s Gross Domestic Product (GDP) will be 4.1% in 2020. Additionally, the government expects that there will be more Foreign Direct Investment (FDI) in the coming years, especially considering the fact that it has moved to the 13th position (up by seven places) in the World Bank’s Ease of Doing Business 2020 ranking, against an overall “weak performance” across Sub-Saharan Africa. Additionally, it is now at the second position in the Absa Africa Financial Markets Index which measures the continent’s most advanced financial markets. Opportunities for foreign investment To make things easier for foreign development and attract more investors, Mauritius has been creating more opportunities for growth. For instance, it is keen on revitalizing tourism, developing the ocean economy, increasing output of renewable energy, enhancing the deployment and adoption of modern technology and building smart cities. It has enacted the Business Facilitation Act, amending 26 legislations designed to spur private investments. This expedites new business launches, eliminates unnecessary license and permit requirements and streamlines customs processes. Additionally, it wishes to capitalize on the African Continental Free Trade Area (AfCFTA). This aims to provide incentives for foreign investors targeting the continent’s market of 1.2 billion consumers. As such, it is presenting itself as a manufacturing and financial hub and will also help the island deepen its ties with mainland Africa, especially for its banks. According to the SBM, one of the largest banks in the country, “Mauritius has successfully tapped into new sectors for sustainable growth”. Developments in its fiscal regime has attracted a new breed of investors. In 2018, France was the biggest source of direct investment in the island with inflows amounting to $74.2 million. It was followed by South Africa at $58.4 million and China with $48.1 million. The UK is also gradually increasing its inflows with $25.3 million.
Mauritius Africa Fintech hub: why should entrepreneurs look into it?
The Mauritius Africa Fintech hub (MAFH) is a network of experts in the fintech industry that work together to help this particular sector progress. Financial-technology is booming and it helps several businesses expand their offerings and benefit from the latest technology. The (MAFH) offers its members several opportunities and avenues for growth. Why should entrepreneurs be interested in fintech? Considering developments that are taking place and new techs that are being implemented, the current era is perfect to join the fintech sector. Whether you are an expert wishing to look into a new venture or a tech SME, you will surely benefit from this industry. Why? Because you will have the opportunity to present a wide variety of essential financial solutions to the African unbanked population. These range from digital wallets to internet banking, alternative point of sales, mobile financial products and other life-changing solutions. While a huge number of people do not have access to these facilities, they are becoming increasingly important to consumers in our society. The benefits of joining MAFH Investing time and money into the fintech industry can be quite scary to some. Things might seem complicated because they disrupt traditional solutions that have been existing for a long time. That is why it is a good idea to join a network such as the Mauritius Africa Fintech hub. You will be able to enjoy the following benefits: You will be able to plug your startup into a network of pan-African, Mauritian governments, corporates, FSPs, investors, fintech businesses and tech experts. You will receive help to deal with the various regulations, such as regulatory sandbox licences and business registration, in place. You will have access to resources and knowledge from other tech businesses that form part of the ecosystem. You will be able to become acquainted and communicate with potential investors and other funding sources. You will have the opportunity to attend roundtable events with regulatory bodies. You will benefit from Mauritian investor agreements that have been established. These can act as buffers for businesses looking to enter new growing African markets. You will benefit from free workshops with regulators, government representatives and other legislative decision-makers. You will be able to take part into innovation labs run by corporates of MAFH itself and You will have free office space in the MAFH building even if you do not live in Mauritius. Why do entrepreneurs choose to work in Mauritius? Setting up a business in Mauritius offers SMEs several advantages. It is the ideal location because of its strong reputation or safety. The island has several Investment Promotion and Protection Agreements (IPPAs) in place with a number of African states. Moreover, it has an International Financial Centre, which guarantees its reputation for safety. Additionally, The Mauritian business world is very famous for its corporate governance culture as well as its stability. As such, it is the ideal sandbox environment for anyone who is new in this industry.
Mauritius Africa Fintech Hub: is it for investors?
The fintech sector offers investors various opportunities, especially in Africa. However, entering such markets can be a complex task for a venture capitalist. While this industry will ensure your growth, it is not always easy to drive innovation through investment when you have to deal with local legislations and licensing issues. These can hamper tech development and consequently business and industry expansion. Nonetheless, the current era that we live in means that there is a call for businesses and governments alike to be open to tech disruption because this will improve the whole outlook for the continent. Moreover, we should not forget that tech ecosystems help ease the journey from innovation to market viable product. Advantages for investors wishing to join the MATH While investors would benefit from venturing into the fintech market, they might need some assistance or guidance. That is why joining the Mauritius Africa FinTech Hub would be a good idea. The following are some advantages of being part of the organisation: Having access to a network of pan-African, Mauritian governments, corporates, FSPs, investors, fintech businesses, tech experts, entrepreneurs, fintech businesses and SMEs that is already very well established. Being introduced to vetted tech innovators, SMEs and entrepreneurs. Businesses that are part of the hub can get access to licencing support and may even have their applications fast-tracked. This means that investing within the hub will allow your venture to have an increased likelihood of getting its licensing approved. Sharing and benefiting from the resources and knowledge of other businesses and legal and tech experts that form part of the Hub. Attending roundtable events with regulatory bodies and help shape future fintech regulation. Mauritius has a number of investment agreements in place with African states. This means that these can act as a buffer on behalf of those looking to enter emerging markets or invest in African fintech businesses. Enjoying facilitated free workshops with government representatives, regulators and other decision-makers, providing an opportunity to shape future regulations. Enjoying free or subsidised office space in Mauritius’s city centre. Why work with a fintech hub based in Mauritius? Mauritius is the ideal location for a fintech hub because of several reasons besides its proximity to Africa, of course. For instance, it has a strong reputation for safety thanks to its several Investment Promotion and Protection Agreements (IPPAs) established with a number of African states. As such, it can act as a protective barrier between local African governments and businesses looking to enter new markets, and is a known International Financial Centre which is widely known for its safety. The Mauritian business world is popular for its corporate governance culture as well as it’s stability. As such, it is the ideal sandbox environment. Several fintech businesses offering their products in Africa have set up operations in Mauritius. Thus, a template already exists for investors. This means that there is a pool of knowledge, networks and experience for them to draw from.
Mauritius Africa Fintech hub: find everything about it!
The Mauritius Africa Fintech Hub (MAFH) is a fast-growing ecosystem where its members collaborate and work together to build cutting-edge solutions for the emerging African market. Its members consist of all representatives on the value chain. They range from entrepreneurs, corporations, governments, tech experts, investors, financial service providers, universities and research institutions. The main aim of MAFT is to pave the way for international FinTech companies and financial service providers to access the African market which is increasingly growing. Moreover, its efforts aim to facilitate African fintech ventures to do business across borders. Why invest into fintech? Why choose this particular industry to invest in? How is it going to grow and help you and the general population of several African countries? Fintech is an opportunity that uplifts. It provides new ways for people to have access to life changing services, such as banking and insurance, which several developed markets take for granted. Besides from helping others, how will this sector help a business? The following positive predictions for Africa’s spending capacity and social improvement over the next decade will shed light on this matter. The fintech sector is expected to reach $3bn in 2020 in Sub-Saharan Africa alone, 52% of mobile transactions processed across the world will take place to and from Africa, 90% of farmers earn less than $0.75 per day. This means that they cannot afford having a bank account. As such, fintech will offer a new way to access helpful services in low-income communities, 80% of people living in Africa do not have bank accounts, 40% of people having the opportunity to access insurance for the first time are women, 57.6% of the world’s mobile money accounts are registered in Sub-Saharan Africa, Africa’s working population is expected to exceed that of China’s by 2025, Consumer spending in Africa’s 18 megacities is expected to reach $1.3trn by 2030 and Only 0.4% of fintech investment is directed at Africa. As such, fintech offers several avenues that will help a business grow. Why choose Mauritius? Why choose Mauritius to be part of a fintech hub? The island offers several advantages. Thanks to its healthy and well-established legal system, favourable tax rate, fast internet connection and respected financial regulatory authorities, Mauritius is the perfect location with the right mix to power fintech growth in Africa. It functions as the fintech gateway to and from Africa while assisting the creation of collaborative partnerships. Moreover, even those who are not residents of the country can be part of MAFH and benefit from it. Who should join the Mauritius Africa FinTech Hub? This fintech hub is ideal for: Entrepreneurs: reach the next stop of your growth phase! Investors: be exposed to vetted Fintech start-ups and get access to its exclusive upcoming Investor Circle events. FSPs & Corporate: stay on-top of the latest tech trends by taking advantage of brand-new developments in the fintech space in both Africa and Mauritius before anybody else has a chance!
