Why foreign investors should tap into Mauritius’ innovation and technology sector
Mauritius’ innovation and technology sector has evolved considerably over the past decade, gaining in attractivity with foreign investors. This island nation is indeed known for its huge potential beyond its heavenly beaches and vibrant cultural scene. The government has introduced a series of incentives for investors seeking new ventures in a dynamic business landscape. Let’s delve into the benefits of investing in Mauritius’s innovation and technology sector. Mauritius can boast a dynamic and developing startup system with opportunities in various fields. In fact, pushing for economic diversification, the country is keen on attracting foreign investors who can contribute to the growth of the technology sector. This includes opportunities and incentives for foreign entrepreneurs who are in the early stages of their innovative business ventures. Investment opportunities in the Mauritian innovation and technology sector Below are some of the most promising fields for innovation and technological investment in Mauritius. Fintech and Digital banking This is one of the most flourishing areas in Mauritius’ innovation and technology sector due to the growing need for efficient financial services, such as digital payment solutions, mobile banking apps, blockchain-based services, and peer-to-peer lending platforms, among others. E-commerce and Online marketplaces Thanks to the booming e-commerce sector, there is a growing demand for professionals who can provide efficient solutions for marketplaces, connecting local and global businesses and customers while contributing to economic growth and job creation. Cybersecurity and Data privacy Cybersecurity and data privacy have become a top priority in Mauritius as anywhere else in the world. Foreign investors with know-how in this sector can explore opportunities available in terms of providing solutions for data protection and threat detection while ensuring privacy compliance. Smart Cities To ensure sustainable development, Mauritius has embarked on an ambitious project consisting of the creation of Smart Cities. The current Smart Cities are Ebene Cybercity, which is an integrated ICT and business services centre hosting branches of companies from around the world, and Côte d’Or Smart City, which is in development. These Smart Cities aim to offer foreign investors a modern and efficient infrastructure in a conducive business environment, along with high-speed connectivity. Other similar projects to be considered by foreign investors are the Beau Plan Smart City, Moka Smart City, Mon Choisy Smart City, etc., where further development is expected. E-Government and Digital services Digitization has become a top priority for the Mauritian government over the past years, which means that opportunities exist for foreign investors in areas like e-government services, digital identity solutions, as well as urban planning, energy efficiency, waste reduction and traffic management, among others. Foreign investors can thus actively contribute to making Mauritius a sustainable nation. Other prospective sectors Foreign investors can also tap into opportunities in various other sectors, including health tech and telemedicine, which have been facing a growing demand since the COVID-19 pandemic, agricultural technology, renewable energy, etc. Besides, the past few years have witnessed an increasing demand for online learning and remote education solutions, too. Incentives available for foreign investors in the technology and innovation sector To attract foreign investors in the innovation and technology sectors, Mauritius has implemented a series of incentives in the past few years. For instance, they can benefit from low corporate tax rates by starting their business venture in Mauritius. Depending on their activity, eligible tech companies can also benefit from tax holidays. Moreover, some technology-related equipment and components might be exempt from customs duties and taxes. Let’s not forget that Mauritius has signed Double Taxation Avoidance Agreements (DTAs) with numerous countries, which means that foreign investors can avoid double taxation on their income and dividends. By investing in Mauritius, foreign entrepreneurs can also benefit from access to a broader regional market and free trade agreements, such as the African Continental Free Trade Area (AfCFTA), which means more development and growth opportunities. Another benefit of investing in Mauritius’ technology and innovation sector is access to government grants and venture capital funding, depending on the nature of the investment project. Since Mauritius is laying emphasis on Research and Development (R&D), incentives such as tax credits are also available. Overall, Mauritius has a conducive business environment with streamlined business registration and licensing procedures, making it easier for foreign investors to start their new ventures. Still, it’s important to get expert advice and help for a smooth start. Blue Azurite is here to help you with the most up-to-date information regarding business opportunities and requirements to be met when investing in Mauritius and the know-how of its team of experts. Get in touch with us now!
Investing in Mauritius: Opportunities in Special Economic Zones
A picturesque island nation nestled in the Indian Ocean, a gateway to Africa and Asia, Mauritius is a particularly attractive destination for foreign investors seeking new ventures. Special Economic Zones (SEZs) are one such area they should capitalize on, not only to foster growth but also to benefit from a range of incentives and benefits. Let us explore the reasons why Mauritius’ SEZs are a good option for investors. If you are an entrepreneur seeking new market frontiers, an established business looking to expand, or an investor seeking attractive returns, Mauritius’ SEZs are a good place to get started. With a strong focus on growth and innovation and a strategic foothold in regional and international markets, Mauritius has successfully attracted diverse industries from around the globe in the past decades. But first things first! What does it entail? What is a Special Economic Zone? By definition, a Special Economic Zone (SEZ) is a designated geographical area that offers special economic regulations, incentives, and infrastructure to attract domestic and foreign investments. Mauritius’ SEZs have been established with the aim of promoting industrialization, economic diversification, job creation, and boosting overall economic growth. It’s worth noting that they operate under a distinct regulatory framework separate from Mauritius’ general economic laws and regulations. This is why businesses operating within SEZs are granted certain exemptions and benefits. Some of the incentives and benefits provided by SEZs to foreign investors include tax breaks, customs duty exemptions, streamlined administrative procedures and simplified regulations. Companies that intend to hire locally also benefit from relaxed labor laws. Mauritius’ SEZs can boast a developed and modern infrastructure, including industrial parks, utilities, and other supporting facilities, designed to meet the specific needs of businesses operating within the zone and enhance their operational efficiency. SEZs usually focus on specific industries or sectors, such as manufacturing, technology, logistics, research and development, tourism, and financial services, in order to promote specialization and create clusters of related businesses. Moreover, through preferential trade agreements with other regions, they can facilitate market access for foreign investors. This means that you will be able to reach broader markets more efficiently. What are Mauritius’ Special Economic Zones? Mauritius’ Special Economic Zones have been designed to attract not only domestic but also foreign investments. They include the following: The Mauritius Freeport, a world-class logistics and distribution hub providing various services, such as warehousing, value-added activities, global trade facilitation, and many others. The Jin Fei Economic Trade and Cooperation Zone, endowed with modern infrastructure and focusing on industries such as light manufacturing, high-tech industries, and logistics. The Medine Economic Zone, which supports and promotes industries such as light manufacturing, agro-processing, and technology-driven sectors. The Mont Choisy Smart City, a mixed-use development that lays emphasis on innovation, sustainability, and quality of life through a range of economic activities, including knowledge-intensive industries, financial services, and high-value tourism. The Côte d’Or Smart City, a rather recentdevelopment focusing on knowledge-intensive and creative industries, technology, and innovation. What are the benefits of investing in Mauritius’ Special Economic Zones? By choosing Mauritius’ Special Economic Zones (SEZs), foreign investors are entitled to a range of benefits, particularly in terms of taxes. Indeed, companies set up in a Special Economic Zone are eligible for a flat 3% corporate tax rate for their first 8 years of operation. Thereafter, they are subjected to a 15% tax rate. What’s more, companies operating in these zones are exempt from duty taxes when importing raw materials, equipment and machinery. The exportation of finished goods and services is also exempt from export taxes and customs duties. Another significant advantage of investing in Mauritius’ SEZ is the streamlined red tape, which makes it easier for the setting up of businesses and the start of operations. In addition, the Mauritian intellectual property laws ensure that foreign businesses enjoy a secure environment for their trademarks, innovation and copyrights. Besides, foreign companies operating within the SEZ framework can access various services, including support for business development, incubation centers, as well as training and development programs. Foreign investors can also benefit from Mauritius’ preferential trade agreements, especially within the African market, which allows for expanding their opportunities and customer base. As a reminder, the island’s strategic location provides easier access to dynamic markets not only in the African region but also in Asia and the Middle East. Of course, conditions to be metand procedures, as well as benefits, will likely vary depending on the investment project and the chosen SEZ. To get the most up-to-date information, get in touch with Blue Azurite now. Our team of experts will assist you on every step, from choosing your SEZ to building up your investment project.
