For over 30 years now, the Indian Ocean Island, Mauritius which is about 2,000 kilometres off the southeastern coast of Africa and east of Madagascar, has been vibrant to attract worldwide investors for the structuring and hosting of their cross-border investment vehicles. Mauritius is a beacon of economic success in Africa, having evolved from a monocrop, mostly sugarcane based, economy to a well-diversified one that includes tourism, manufacturing, fisheries, ICT, and financial services, amongst others. This transformation has led to an upper-middle-income country with a GDP per capita income exceeding USD 10,000 at present.
The financial services sector is an integral part of the Mauritian economy, with a GDP contribution of around 13%. Thanks to its political and economic stability, favourable tax regimes, regulatory framework in line with international standards (the island is an OECD whitelisted jurisdiction), ease of doing business (ranking 1st in Africa by the World Bank) and qualified local workforce, the Mauritian jurisdiction is a tried and tested platform for institutional investors, multinationals, Private Equity players, wealth managers, financial institutions and entrepreneurs to promote investments on the African continent.
Indeed, Mauritius has built on the expertise it has acquired over the last 3 decades and has established itself as a mature International Financial Centre (IFC) and, as an African country, the island aspires to play a pivotal role in the development of the continent through significant contribution of FDIs. In recent years, $82 billion in investments has been channelled into Africa through Mauritius, according to the Economic Development Board of Mauritius.
Opportunity for Chinese investors
Mauritius is strategically positioned between Asia and Africa in Dubai’s time zone and has more than 20,000 finance professionals fluent in English and French and proficient in many other languages, including Mandarin. It is a known fact that for the past 20 years, China has also become sub-Saharan Africa’s largest bilateral trading partner. According to Chinese Ambassador to Mauritius, H. E. ZHU Linyi: In the first quarter of 2024, the trade volume between China and Africa reached USD 70.6 billion, a remarkable 95% increase compared to the same period last year. Mauritius is also a member of key trading blocs – the South African Development Community, the Common Market for Eastern and Southern Africa, and the African Continental Free Trade Area (AfCFTA) which is likely to accelerate investment trend by promoting the growth of regional value chains, offering Chinese businesses access to a larger unified African market.
Investment opportunities are therefore on the rise, and Mauritius is naturally inclined to serve as a hub for Chinese clients to structure their investments, whether in trading operations or holding companies to actively support and ensure the perennity of their African operations.
The island also offers opportunities in the real estate sector, with a variety of top-of-the-range properties that are particularly attractive to wealthy clients. By acquiring property in Mauritius, the investor will automatically be granted a resident status for himself and his family.
As one of the pioneer management companies in the jurisdiction, DTOS has been associated with the development of the Mauritian IFC since its inception and remains an active contributor to the continued growth and good reputation of the financial services industry. It remains a 100% Mauritian group which has been instrumental in structuring investments for its clients worldwide and has provided a multitude of services through its various departments while guaranteeing the professionalism, continuity, and integrity of the companies it manages.
In addition to incorporation services offering, DTOS provides horizontal integration of services such as financial and accounting outsourcing, investor services including share register management and listings on international stock markets.
We have been assisting Chinese clients for more than 20 years thanks to our resolute team of Mandarin-speaking employees and provided them with corporate or private client services. We pay particular attention to our clients’ needs and recommend products and investment vehicles that reconcile their interests with those of the jurisdiction, which must comply with international tax and regulatory standards.
Some clients may choose to structure their investments in other financial centres, which is why DTOS is present in several jurisdictions (Dubai, Kenya, Rwanda), offering a choice to our clients who can then decide which financial centre will enable them to carry out their projects. Given this regional footprint, we can also easily look at clients’ businesses or handhold them as they expand through Africa. The booming continent needs quality investment to support its development. Good governance will be crucial for the future of sustainable investment in Africa and as a leading Mauritian Corporate service provider, DTOS also actively participate in the establishment of good corporate governance for its clients by creating sustainable enterprises and value for shareholders.
About the author:
Vaneeta Bickoo Brelu-Brelu is DTOS Group Business Development Manager, she is responsible for developing and implementing sales strategies across markets with a special focus on Africa. With 15+ years of experience, she gathered hands on knowledge of the continent and its wide cultural diversity through various leadership roles in the Equatorial Africa region comprising of 21 countries. She has also built over the years an active stakeholder network in the financial services sector and is an experienced Director on the boards of Global Business companies.
