FROM BEACH PARADISE TO BUSINESS HOTSPOT

The rise ... and rise of Mauritius

There are a number of key factors that make for an attractive investment environment, including a welldeveloped banking system, a favourable tax regime, and low inflation. If you add to the mix a location that is just right, in terms of proximity to major international markets, the stars really fall into alignment. That

is exactly the case for Mauritius.

The modest Indian Ocean Island, which has always been best known for its exquisite white beaches and getaway-from-it-all lifestyle, is fast becoming one of the hottest investment destinations and foremost business hubs on the African continent.

Back in 2017, the Financial Times published a special report on investing in Mauritius, headlined “Mauritius sets sights on becoming new Singapore”. In the decade prior, 2007 to 2017, the wealth held in the island country grew by 195%, prompting this accurate comparison from a publication held in extremely high regard by investors.

Being likened to one of the leading real estate and business hubs in Asia is no small achievement. Not only is Mauritius enjoying recognition as the African version of this thriving economy, but is also the highest ranked economy in sub-saharan Africa on the World Bank’s Ease of Doing Business Index.

So how exactly did the little island nation go from holiday spot to investment mecca in just more than a decade?

Turning the tide on taxes

The fact that Mauritius is on a mission to make itself more attractive as an investment environment is clear from its progressive and highly favourable tax regime. Mauritian tax planning advantages include no capital gains tax, no inheritance, wealth, or gift tax, a standard 15% individual tax rate, and no exchange control. Corporate tax is set at a rate of 15% or lower, while the country also boasts a strong tax treaty network.

Location, location, location

This well-known refrain of any savvy property investor cannot be argued in the case of Mauritius, which is ideally positioned for foreign investment for a number of key reasons. Its proximity to South Africa – it is a mere fourhour flight from Johannesburg – is an obvious advantage, as the City of Gold remains the foremost business hub on the continent. Mauritius is also perfectly positioned en route from Asia and the Middle East to the tip of Africa, making it ideal for expansion into Africa, and also from Africa into the rest of the world.

Major global brands such as Samsung, Broll, NBA, and Expedia have already set up office in Mauritius, recognising it as both an ideal location and efficient business environment. One company that has long been tracking the potential of this island paradise is The Business Exchange (TBE), a respected South African serviced office space provider. Just recently, TBE launched a unique investment opportunity for South Africans looking to secure their slice of the island pie.

Starting at US$36 500 (about R530 000), investors can purchase sectional title serviced office space, managed by TBE, in Mauritius. “With this offering, TBE is targeting investors seeking to purchase property in a unique, highgrowth asset class. Furthermore, it offers a hedge against the Rand in a location set to see stable and predictable growth and expansion in the near future,” says David Seinker, founder and CEO of TBE.

Sea, sun, and stability

Mauritius is a fiscally and economically sound environment, with modern infrastructure and a sophisticated banking system, and a strong banking regulator in the Bank of Mauritius (the island’s equivalent of the Reserve Bank).

Socially, the country has a lot going for it too. New World Wealth rated Mauritius as the safest country in Africa, as well as the wealthiest country on the continent on a percapita basis. The commitment of the government to more than just financial wealth is also evident from its Ministry of Health and Wellness, which is responsible for public health care.

“Current and past democratic leaders have all demonstrated their commitment to a market economy that fosters entreneurship and foreign investment. With annual growth averaging approximately 6% over the past decade, it is a sound investment opportunity,” Seinker believes.