Security Token Trading Systems
The Financial Services Commission (FSC) has, on 15 June 2020, issued its guidance notes concerning the implementation of a common set of standards for Security Token Offerings (STO) and the licensing of Security Token Trading Systems in Mauritius in an attempt to position Mauritius as a regional hub of sound reputation in the field of Fintech. The guidance notes also highlight the requirements to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws and codes, data protection laws, and implementation of good market practice for an efficient, transparent and integrated financial market. Why use Security Tokens to raise capital? STOs are seen as lower risk because the securities laws that security tokens have to comply with often enforce transparency and accountability, compared to an Initial Coin Offering (ICO). A security token will also be backed by a real-world asset, which makes it a lot easier to assess whether or not the token is priced fairly in relation to the underlying asset. STO is also more cost-effective than Initial Public Offering (IPO). With IPOs, the companies would typically pay high brokerage and investment banking fees to get access to a deeper investor base. STOs would still need to pay lawyers and advisors, but they offer more direct access to the investment market and, therefore, typically will not have to pay large fees to investment banks or brokerages. The post-offering administration for STOs is also less cumbersome and cheaper than with traditional IPOs. Fractional ownership and the ability to trade 24/7 bring additional liquidity to the market, especially with traditionally illiquid assets, such as scarce paintings, property and collectibles.
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: 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!
