boi newsletter - october 2011

8/2/2019 BOI Newsletter - October 2011

1/33

The National Investment

Promotion Agency of Mauritius

INVEST MAURITIUS

BOI Newsletter / October 2011

BOARD OF INVESTMENT

MAURITIUS

MauritiusYour Investment and Business Hub

www.investmauritius.com

ISSUE NO. 35


2/33

Contents

1. Editorial 1

2. Clear and present dangers, an Analysis of BOI Chairman, Maurice Lam 2

3. According to latest OECD Report, Mauritius has taken signicant steps towards more transparencyand exchange of information.

4

4. The Mauritius-Germany DTA was revised to boost the local investment climate 6

5. Ofcial opening of the Bagatelle Mall of Mauritius, the biggest mall in the island, by the MauritianPrime Minister

7

6. CEO of ENL Property, Gilbert Espitalier-Nol, revealed major projects in Mauritius and the region inan exclusive interview to BOI

9

7. South African Pick n Pay opens rst store in Mauritius and announces two more in 2012 11

8. Some 100 business leaders attended the BOI session in Australia in the context of theCommonwealth Business Forum

12

9. The Board of Investment (BOI) organised an investment promotion mission to UK and Ireland in

second week of October 201115

10. BOI Chairman, Maurice Lam, highlighted the economic reforms of Mauritius at a landmark event of

the Columbia Business School in London

16

11. Business delegations from Belgium and China at BOI exploring investment opportunities in Mauritius 18

12. Some 250 participants at the rst ICT/BPO Conference and Networking Forum in Mauritius 20

13. Hewlett Packard sets up ofce in Mauritius 22

14. The IMF opened an Africa Regional Technical Assistance Centre in Mauritius 23

15. Non-citizens holding PR permit can buy specic residential apartments in Mauritius 24

16. Mauritius introduces Limited Partnerships 25

17. A Joint Public-Private Sector Business Facilitation Task force set up to enhance the businessenvironment of Mauritius

26

18. Forbes Survey of Best Countries for Business ranks Mauritius 1st in Africa and 19th worldwide 27

19. Mauritius tops the Mo Ibrahim Index of African Governance for the 5th consecutive year 28

20. Mauritius remains the easiest place to do business in Africa according to the World Bank DoingBusiness Report 2012

29


3/33

Editorial

Dear Valued Investors,

I welcome you to this edition of our newsletter at this critical juncture when leaders of the Euro zone arereaching an agreement on the rescue plan in view of shoring up the troubledsovereign borrowers of its member States in a bid to boost investors con -dence. Demanding times call for innovative solutions in order to maintain the

level of competitiveness. In this perspective, Mauritius is constantly reviewingits product offerings and services. The adoption of the Limited Partnership Bill

during its second reading in the National Assembly last month will certainlyattract more Private Equities to structure their investments in Mauritius. Our

endeavour to move towards an innovation-driven economy is supported byrecently adopted legislations like the Clinical Trials Act, whereby projects forconducting clinical research will be authorised in Mauritius.

The performance of the export-oriented enterprises sector from January to

September 2011, as compared with the corresponding period in 2010, is atestimony to our commitment to improve our competitiveness. The value of

exports of the sector increased by 11.7% over the said period with exports tothe United Kingdom, France and the USA recording an increase of 6.3%, 9.3%and 9.1%, respectively. Exports to the regional market, particularly South

Africa and Madagascar, recorded increases of 58.6% and 28.8%, respectively.

International recognitions achieved by Mauritius in October equally reafrm our determination to continu-ously enhance the investment climate. In the 2012 World Bank Doing Business report, Mauritius wasranked rst in Africa for the fourth consecutive year. BOI has initiated a strong collaborative approach with

the newly set up public-private sector task-force to further enhance business facilitation. Furthermore,Mauritius topped the 2011 Mo Ibrahim Index of African Governance which assesses 53 countries. The re-cent Forbes Survey of Best Countries for Business, based on eleven criteria, placed Mauritius rst in Africaand nineteenth world-wide out of 134 countries under review. Moreover, in its Supplementary Peer ReviewReport, the OECD stated that Mauritius has taken signicant steps to enhance its exchange of informa-tion and its legal and regulatory framework. This is yet another conrmation of the status of Mauritius as atrusted, transparent and well-established International Financial Centre.

A recent report by the IMF predicts growth rates of 5.25% and 5.75%, substantially above global growthrates, for 2011 and 2012, respectively, for the Sub Saharan African region. In this context, with a view tofurther increasing the visibility of Mauritius as the investment platform and a reliable business hub for the

region, BOI participated in the Commonwealth Business Forum held in Perth from 25th to 27th October2011. As part of our ongoing efforts to consolidate our traditional markets, BOI also participated in the 10th

Annual London Property Show 2011 to showcase existing investment possibilities in real-estate develop-ment in Mauritius.

The inauguration of the Bagatelle Mall of Mauritius reiterates the condence of investors in the Mauritianeconomy. An exclusive interview of Mr. Gilbert Espitalier-Nol, CEO of ENL Property, in this newsletter in-dicates the optimism and willingness of operators to do business in Mauritius.

Finally, as you may be aware, the National Budget 2012 will be presented by Honourable Xavier Luc Duval,Vice-Prime Minister and Minister of Finance and Economic Development, on 4th November. BOI will issuea special bulletin on the same day to update you on the key budgetary measures announced.

On this note, I wish to reassure you of our commitment to serve you to the best of our ability and wish you

all an enjoyable read.

Ken Poonoosamy

Managing Director

1


4/33

Clear and present dangers, an Analysis of BOI

Chairman, Maurice Lam

The EU leaders nally agreed to a Master Plan to resolve the EU sovereign debt crisis. Financial markets

reacted positively, but adopted a more cautious stance one day later. While a rst step was made to ad-dress the Eurozone crisis and recent data shows that the US economy is not entering a recession, theglobal economic outlook is still uncertain.

As the Eurozone countries implement austerity measures to reduce their budgetary imbalances, economic

growth is expected to be sluggish for years to come.

It can be expected that sluggish growth or a recession in Europe could have a negative impact on the exportsectors of Mauritius.

Mauritius has to be prepared to face this uncertain future and to take advantage of opportunities that might

arise out of any turmoil.

Asias economy is still growing, led be China and India. Many countries of Africa are seeing GDP growthrate above 7%. Inevitably the centre of gravity of the world economy is moving away from Europe to Asiaand Africa.

The Board of Investment is redirecting more of its resources to take advantage of opportunities arising from

the growth in economic activities in Asia and Africa, while it continues to seek for investors from Europe.

In its promotion messages, the Board of Investment is selling Mauritius as the business hub of the region.

Mauritius: The International Headquarter Hub for Asian Companies

Chinese and Indian companies are getting more global. They can use the Mauritius business hub

to hold ownership of their foreign subsidiaries and manage their international nance and treasury

activities. They will benet from the wide network of DTAA and IPPA of Mauritius to efciently managethe ows of capital to fund their foreign subsidiaries. A number of international banks in Mauritius canreadily provide international and cash management services.

Mauritius: The Mining Services Hub of Africa

The extractive sector of Africa continues to attract investments. Companies from Western Australia

are already and will be more involved in early mining exploration activities in Africa. These earlyexploration companies need capital. Currently they go to either the Toronto Stock Exchange or the

Australian Stock Exchange to raise equity capital. Mauritius can develop to be an alternative, closer

to Africa, for this equity capital raising.

Either the Stock Exchange of Mauritius could create a special section for the listing of shares of early

exploration mining companies or a new stock exchange could offer this new platform. There is everyreason to believe that the SEM or this new stock exchange could be a viable alternative to the TorontoStock Exchange or the Australian Stock Exchange.

2


5/33

A Renaissance of the Manufacturing Sector

While the Board of Investment is promoting new activities in Mauritius, it is also ensuring that manu-facturing continues to provide a signicant contribution to economic growth. Labor and other manu-facturing costs are rising in China and companies with manufacturing operations in China are start-ing to nd alternative countries to relocate these operations. Mauritius can be the ideal location for

certain manufacturing activities.

Accordingly the Board of Investment will be working with multinationals with manufacturing opera-tions in China in order to offer the Mauritius Manufacturing Platform. There are early encouraging

signs.

Re-inventing the Board of Investment

Within this highly uncertain global environment, no business or organization can continue doing its

business the way it has been doing it for the past ten years. The Board of Investment is reviewing itsentire process of working with investors in order to be more proactive in its dealings with investors. Itwill leverage the use of Internet and Information technology to collect and disseminate information. Itis reviewing its organization structure and its human talents so that it becomes the partner of choice

to the investor, domestic and foreign.

Yes, the global economy can be viewed as having clear and present danger. Yet it can also be perceivedas having clear and present opportunities. The Board of Investment looks at the environment as presenting

many opportunities.

3


6/33

According to latest OECD Report,

Mauritius has taken signicant

steps towards more transparency

and exchange of information.

The 4th meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes washeld from 25-26 October 2011 in Paris.

The Global Forum, under the aegis of the Organisation for Economic Co-operation & Development (OECD),is charged with in-depth monitoring and peer review of the implementation of the international standards oftransparency and exchange of information for tax purposes.

The Supplementary Peer Review Report on Mauritius, which is a reference document for the nancial ser-vices sector, was released during this meeting and it mentioned that in line with the international movementtowards more transparency and exchange of information, Mauritius has taken signicant steps to enhanceits exchange of information and its legal and regulatory framework. Mauritius is able to exchange informa-tion on non-resident individuals and companies. There are accounting requirements for all Mauritius enti-

ties, resident and non-resident.

According to the Report, Mauritius has exchange of information mechanisms signed with 38 jurisdictionsand continues negotiating new Double Taxation Avoidance Agreements (DTAAs) and Tax Information Ex-change Agreements (TIEAs). The Report noted that Mauritius has never refused to sign an exchange of

information agreement and it is recognised that Mauritius is putting in place a national strategy for an ef-

cient exchange of information system, and answers most requests within 90 days.

The report highlights the fact that Mauritius being a small and open economy is dynamic, diversied andfully integrated into world markets. Mauritius has over the years developed a legal and regulatory frame-work that gives its competent authority broad access to the full range of foreseeably relevant information.

The OECD Report also described as an encouraging development the initiative of the Mauritian authori-

ties to make stakeholders aware of the competent authoritys power to obtain bank information.

4


7/33

The Report thus conrms the status of Mauritius as a trusted, transparent and well-established InternationalFinancial Centre.

5


8/33

The Mauritius-Germany DTA was revised

to boost the local investment climate

The Double Taxation Avoidance Agreement (DTAA) between Mauritius and Germany, originally signedsome 30 years back, has been revised in order to better promote investment and exchange of informationbetween the two countries. The signing ceremony for the revised DTAA was held on Friday 07th October2011 in Port Louis in the presence of the Mauritian Vice-Prime Minister and Minister of Finance and Eco -nomic Development, Hon. Xavier-Luc Duval, GSCK and the German Ambassador to Mauritius, H.E. Hans-Dieter Stell.

Left to right: HE Hans-Dieter Stell, German Ambassador to Mauritius and

Hon Xavier Duval, VPM and Minister of Finance

According to VPM Xavier Duval, this move of the Mauritian Government aims at enhancing the local in-vestment climate and attracting more foreign investment into the island. The Finance Minister also praisedthe good reputation of Mauritius as an international nancial centre of choice in the following terms: Mau-

ritius has undergone the Combined Phases 1 and 2 peer review of the OECD Global Forum regarding theeffectiveness of our exchange of information mechanism. I am glad to inform you that the global Forum has

found that Mauritius has all the required elements for an effective exchange of information in place .

6


9/33

Ofcial opening of the Bagatelle Mall of

Mauritius, the biggest mall in the island, by

the Mauritian Prime Minister

The month of October saw the spotlight fall on the Bagatelle Mall of Mauritius, a joint venture between SouthAfricas Atterbury Group and the Espitalier Noel (ENL) Group.

Inaugurated by the Prime Minister, Dr The Honourable Navinchandra Ramgoolam, GCSK, FRCP on 19October 2011, the bagatelle Mall is designed as an international standard leisure and shopping facility withrestaurants, cinema and retail outlets which is clearly visible from the highway.

The Mauritian Prime Minister, Dr Navin Ramgoolam (middle), visiting the Bagatelle Mall of Mauritius

Bagatelle Mall of Mauritius opened to the public exactly one year after the Prime Minister addressed the

One Year Countdown Ceremony. The 40, 000 sqm retail offering is anchored by latest generation stores,vaunts 130 shops and have the most comprehensive food and entertainment offering all wrapped in colonialstyles buildings around a sugar-cane-mill chimney of the olden days. The mall heralds the beginning of an

integrated development that would also comprise of a business hotel, a residential area, an ofce park anda motor city.

7


10/33

In his address during the ofcial launch, the Prime Minister stressed on the need to constantly revisit oldconcepts and old models of doing business so as to maintain our competitive edge. In this time of dismal

international economic outlook and continuing nancial crisis in Europe and USA that has not left Mauritiusunscathered, sustainable development, leadership, vision and hard work are the recipes for achieving thecommon goal of hoisting Mauritius into the league of high-income economies.

With the growth of the travel industry and the expansion of the middle class, retailing has become one of thelargest industries in the world. Global shopping tourism is a $ 34 billion industry and is the fastest growingretail channel after the internet. Shopping options have a signicant inuence on the choice of destinations.

The vision is to develop shopping as an important element in the countrys overall tourism product and di-

versication of the tourism market.

The target, as announced by the Prime Minister, is to attract 200,000 brand conscious visitors, by 2014,and to generate an annual turnover of approximately Rs 20 billion by 2020. These targets will drive futureinitiatives of making visitors to engage in shopping and catapult growth in sectors like manufacturing, realestate, and construction.

The Bagatelle project is in line with the economic strategy to further diversify the economy and the tourismmarket while ensuring world class development. The mall is expected to boost the attractiveness of ourdestination and help maintain our growth momentum.

8


11/33

CEO of ENL Property, Gilbert Espitalier-Nol,

revealed major projects in Mauritius and the region

in an exclusive interview to BOI

1. This month of October was marked by the ofcial opening of Bagatelle Mall of Mauritius, the big -

gest shopping mall of the island. Can you highlight the factors that motivated your group to embark

on this great adventure of creating the Bagatelle Mall of Mauritius?

Property development, serviced by ENL Property, is one of the four development pillars of the ENL Group,

together with agriculture serviced by ENL Agriculture, commerce and industry serviced by ENL Commercialand investment management serviced by ENL Investment.

ENL Property is already engaged in the development of diverse real estate projects around the island,

including Les Alles dHelvtia residential development, Villas Valriche and La Balise Marina IRS develop-

ments, but by far, the Bagatelle Mall of Mauritius is the largest property development of the ENL Group so

far.

Following a long study of shopping and retail demand and the attractiveness of geo-locations in Mauritius,our team of local and international consultants provided us with expert advice on the optimum market posi -tioning opportunity represented by the Bagatelle region. The Bagatelle Mall of Mauritius site is the naturally

optimum zone de challandise for Mauritius. The site is located in the centre of the island and ideally po-sitioned to tap into the catchment area physically extending to a radius of more than 10-15 km which alsoenglobes 80% of the Mauritian purchasing power.

Given that the ENL Group already owned the strip of land extending from Pont Colville to the Rduit roundabout, we had the right location for the development of Bagatelle Mall of Mauritius.

2. Can you give us some details on the extent of the Bagatelle Mall of Mauritius project and the

amount of investment which this project has necessitated? Was it difcult to convince your South

African partner to join hands for the realization of this Bagatelle Mall of Mauritius?

Investment in the Bagatelle Mall of Mauritius project encompassed major infrastructural works including

parkings, access roads and the y-over bridge to the tune of MUR 575 M, the shopping mall complex to thetune of MUR 2.7 Billion and the Bagatelle Hotel to the tune of MUR 300 Million. Total investment is close toMUR 4 Billion (around USD 130 M).

Out of the master planned development extending over 102 hectares at Bagatelle, the shopping mall com-plex and urban resort hotel have a surface area of 42,000 m2 out of the present development site whichis of an area of 17 hectares. The Bagatelle Mall of Mauritius comprises of 140 shops, restaurants and morethan 40 well-known brands, some of which were already present in Mauritius whilst others moved to thecountry with the opening of the mall.

To the second part of the question, it was not difcult at all to convince the Atterbury Group to join hands forthe development of the project, given the ideal geo-location of the site and the huge targeted catchment

area. We thank the Government and the various authorities for facilitating this development.

9


12/33

3. Any big projects in the pipeline for ENL Property in Mauritius and the region in the near future?

ENL Property has a number of development projects in the pipeline, namely the signicant IRS develop-ments, Villas Valriche and La Balise Marina IRS and the 6,000 m2 Kendra commercial centre in St Pierrewhich will necessitate an investment of MUR 350 Million. The commercial centre will be operational in

September 2012.

In a more immediate term, in the next few days, we are engaging into the subsequent development phasesof the Bagatelle masterplan, namely the development of 4,000 m2 of ofce space, residential developmentsand a 6 000 square meter motor city.

At the regional level, the ENL Group is discussing with the Atterbury Group to jointly develop a commercialcentre in Southern Africa.

4. Over the past years, Mauritius witnessed important investments in the property sector all over

the island. How far do you believe these developments have impacted on the socioeconomic devel-

opment of the island? Are you still optimistic about the future of the property development sector

in Mauritius?

The country wide property development has impacted the socio-economic development of Mauritius quitesignicantly.

On the economic front, investments in IRS, commercial centres and ofce buildings have given a hugeboost to the construction industry. As we know very well, the construction industry has a multiplier effect onthe economy, whereby a positive effect in the construction industry has a more positive rippling impact onthe overall economy. Property development and real estate investment has also represented a large share

of the countrys FDI over the recent years, with the net effect of positively contributing to the overall balanceof payment for Mauritius.

On the sociological front, I am convinced that developments such as Bagatelle Mall of Mauritius bring a

new and different vibrancy to Mauritius and its population through the creation of additional entertainmentfacilities.

To the second part of the question, yes, I am optimistic about the future of the property development sector

in Mauritius.

As far as the world economic crisis is concerned, the biggest impact has been on the luxury real estatemarket across the globe. Mauritius has not been left unscathered. We have witnessed a slowdown in thereal estate and property development industry and the sales of IRS and RES units. I must add that the local

residential real estate market has held up and is showing slow but continuous growth momentum, contraryto what is happening in other parts of the world. With regards to the evolution of the property developmentsector in Mauritius, I also believe that the country requires more attention to urban planning and better

monitoring of existing regulations and laws. Well planned and executed development can contribute to theupliftment of the community.

10


13/33

South African Pick n Pay opens rst store in

Mauritius and announces two more in 2012

Pick n Pay store at Bagatelle Mall of Mauritius

Described as one of Africas largest retailers of food, general merchandise and clothing, Pick n Pay from

South Africa has recently launched its rst Mauritian store at the Bagatelles Mall of Mauritius.

Already boasting a total of 775 stores in South Africa and elsewhere, made up of Hypermarkets, Supermar-kets and Family Stores, the promoter of Pick n Pay conrmed the opening of a further two stores next yearin Mauritius as it pursues its expansion strategy into African countries. The new Pick n Pay store in Mauritius

is approximately 4,000m and would offer over 16,000 different products including a clothing offering.

Mauritius was chosen as a business platform based on comprehensive research and assessment con-ducted by Pick n Pay headquarters in South Africa. Research has shown that Mauritius has one of the mostsuccessful and competitive economies in Africa. According to the promoter, one of the main benets to thelocal economy would be the creation of more than 100 jobs. The employment gure is set to grow as thecompany grows its store numbers in Mauritius.

The model of Pick n Pay also provides for the empowerment of small farmers, producers and suppliers.

11


14/33

Some 100 business leaders attended the

BOI session in Australia in the context of

the Commonwealth Business Forum

The Commonwealth Business Forum (CBF) was organized from 25 to 27 October in Perth, Australia inconjunction with the Commonwealth Heads of Government Meeting (CHOGM), focusing on the themePartnering for Global Growth: The Commonwealth, Indian Ocean and the Pacic Rim.

The Forum highlighted new global economic partnerships for trade and investment in key sectors acrossthe Commonwealth and beyond. The CBF as a unique gathering of business leaders from developed andemerging markets focus on building the new economic and nancial architecture in the global economyand ensure that it is inclusive and benecial to all

The Forum saw the participation of more than 1,200 delegates, 16 Heads of Government and 150 Busi-ness Leaders and was a useful platform for fostering partnerships and new relationships. High Prolespeakers, namely Nobel Prize winner in Economics, Prof Edward Prescott and New York University Pro -fessor Nouriel Roubini, shared their thoughts on the international economic landscape and the prospects

ahead.

Professor Nouriel Roubini said that there is more probability now that Europe would head towards arecession and concrete measures should be taken to prevent further defaults from members of the EU

on the periphery. There is no sight of a swift recovery. He also predicts a hard landing for China in themedium term due to over spending and a disproportionate focus on real estate.

Leaders from Canada and Australia, members of the G20 with very strong economic fundamentals, gavepowerful insights on the bleak global economic prospects ahead and looked forward to some decisiveactions during the forthcoming G 20 summit in Cannes in less than a week from now. They reiterated astrong call for actions from EU members to prevent a double dip global recession looming on the horizon

quicker than we all thought.

Prime Minister Julia Guillard from Australia expressed concerns on the treatment of worlds richest nationsto the poorest countries by not removing trade barriers and warned the world against the rising tide of pro-

tectionism. She made a pledge during the Commonwealth Business Council for Australia to offer completemarket and duty free access to least developing countries willing to export their products and services andcalled on other countries to follow Australias example.

12


15/33

The nal declaration of the Business meet indicated that deals and contracts in excess of USD 10 billionhave been concluded by participants to the Business meeting, the best ever result for a Forum, accordingto the events organisers.

UK Prime Minister David Cameron (Middle), Mauritius Prime Minister Dr Navinchandra Ramgoolam (Right) and Botswana

President Ian Khama (Left) were pictured in the Commonwealth Heads of Government Meetings retreat in Perth, Australia,on October 29, 2011.

Mauritius Participation at the Commonwealth Business Forum (CBF)A delegation from the Board of Investment of Mauritius led by the Chairman and Managing Director and

comprising two private sector members participated at the CBF.

A parallel session was organised on Thursday 27th October on Investing in Mauritius. The Minister of For-eign Affairs, International Trade and Regional Integration, Dr the Hon Arvin Boolell, GOSK, was the keynotespeaker for this session which was moderated by the Chairman of the Board of Investment.

Right to left: Minister Boolell, Maurice Lam (Chairman of BOI) at the session in Australia

Mauritius Participation at the Commonwealth Business Forum (CBF)

A delegation from the Board of Investment of Mauritius led by the Chairman and Managing Director and

comprising two private sector members participated at the CBF.

A parallel session was organised on Thursday 27th October on Investing in Mauritius. The Minister of For-eign Affairs, International Trade and Regional Integration, Dr the Hon Arvin Boolell, GOSK, was the keynotespeaker for this session which was moderated by the Chairman of the Board of Investment.

13


16/33

The session aimed at promoting Mauritius and the business climate in the country as well as the invest-ment opportunities. Some 100 business leaders attended the session and they approached BOI for variousinformation namely the local business environment, the scal environment, the manpower available aswell as the sectors of interests. The manifold investment and business opportunities in Mauritius were alsopresented to the high-prole participants. Strong emphasis was also placed on the role of Mauritius as the

platform for Africa. The Board of Investment will undertake close follow-up on the contacts established.

The Minister of Foreign Affairs, International Trade and Regional Integration also made a key note addresson the theme Education, Knowledge and Skills: Driving 21st Century Growth where he shared the visionof the Government on making Mauritius a Knowledge Hub.

14


17/33

The Board of Investment (BOI) organised an

investment promotion mission to UK and

Ireland in second week of October 2011

The BOI undertook an important promotion mission in UK and Ireland during this month. The mission wasorganised with the objective of initiating contact with targeted investors in the different sectors such as Fi-nancial Services, Knowledge, Life Sciences, Healthcare and ICT/BPO. This mission also aimed at reinforc-ing the image of Mauritius as an attractive investment destination, bridging the African and Asian continent.

With a view to positioning Mauritius as a knowledge hub, BOI met with prestigious UK public and private

higher education institutions and invited them to set up branch campuses in Mauritius and also to exploreavenues of collaboration with existing higher education institutions in Mauritius. The BOI team had also theopportunity to meet with vice-chancellors and pro vice-chancellors of prestigious institutions in UK.

The BOI also participated in the London Property Investor Show, held from the 13th to the 15th of October2011 in London. The London Property Investor Show is a major real estate event with more than 200 exhibi -tors and 100 seminars. This event provided the appropriate platform to showcase real estate developmentsin Mauritius. BOI mounted a delegation of 8 property developers and promoters to showcase and marketmajor real estate projects undertaken in Mauritius.

BOI also participated in Private Equity in Africa 2011 in London, a leadership summit for Private Equityinvestors. The event gathered leading gures from the fund management, limited partner, and public andprivate sectors to explore opportunities presented by private equity investment in Africa.

Moreover, in line with developments happening in the life sciences sector, BOI engaged with pharmaceuti -cal, medical devices and clinical research companies in Ireland to invite them to consider opportunities in

this emerging sector.

The mission has enabled BOI to engage with potential investors and restore condence in Mauritius as aninvestment location. BOI is actively following up on the leads established. Inward delegations from UK areshortly expected.

15


18/33

BOI Chairman, Maurice Lam, highlighted the

economic reforms of Mauritius at a landmark

event of the Columbia Business School in

London

The Chairman of the Board of Investment, Maurice Lam, participated in the Pan-European Reunion 2011which was held in London, England from 14-16 October 2011. The Pan-European Reunion is a high-prolediscussion platform of the prestigious Columbia Business School. This year, the panel attracted more than

400 attendees, all graduates of the Columbia Business School, with about 200 interested in doing businessin Africa as well as guests from 37 countries.

Pan-European Reunion London 2011: BOI Chairman, Maurice Lam, (1st from the right)

During this Reunion, Maurice Lam was a member of the panel on African Private Sector: The Key to De -velopment. Other members of the panel were Abdalla Elebiary, partner in the Private Equity rm Citadelinvesting in the Middle East and Africa, Arthur Levi, Independent Consultant, EMRC and Akin Osinubi, CEO,

Oakyam Company (Nigeria). The session moderator was William Duggan, Senior Lecturer, ManagementDivision of Columbia Business School.

BOI Chairman, Maurice Lam, intervening during the session

In his intervention, Maurice Lam described the economic reforms introduced in 2006 by the Governmentled by the Prime Minister, Dr Navinchandra Ramgoolam. Asked about the key factors behind the successful

reforms, Maurice Lam stated that there has to be leadership at the highest level of Government, i.e. the

Prime Minister and a government agency which is tasked to operationalize the decisions of Government.

In the case of Mauritius, the Prime Minister wanted a seismic change in the economic development of thecountry and believes frmly that government working in partnership with the private sector, with government

as facilitator, can improve the business climate to encourage both domestic and foreign investments. The

Government opened the country to foreign capital, knowhow and talents. The results were an economic

growth rate in GDP near 6% a year prior to the 2008/9 global economic crisis.

16


19/33

The Chairman of BOI, Maurice Lam, also outlined the strategy to make Mauritius the business hub and

gateway to Africa.

Members of the panel (Maurice Lam, 1st from left)

17


20/33

Business delegations from Belgium and

China at BOI exploring investment

opportunities in Mauritius

The Board of Investment (BOI) welcomed a delegation of 12 Belgian businessmen headed by his Excel-lency, the Honorary Consul of Wallone, Belgium, Professor Wtterwulghe, on the 4th October 2011.

Left to right: H.E. Mr S.Gunessee, Ambassador Mauritius Embassy, Brussels, Mr Ken Poonoosamy, MD of BOI,

H.E. Prof Wtterwulghe, Honorary Consul of Wallone, Belgium

The delegation visited Mauritius to gauge the investment and business opportunities in different sectors.

BOI organised an interactive session with the delegation to present the different opportunities which Mauri-

tius offers in the traditional and emerging sectors.

Professor Wtterwulghe qualied the visit of the delegation as highly fruitful and positive. The Belgian inves-tors have expressed interest to revisit Mauritius to discuss potential business projects with the contacts theyhave initiated in Mauritius.

During this month, BOI welcomed a second foreign delegation on 14th October 2011 from Wenzhou, aprefecture-level city in southeastern Zhejiang province, Peoples Republic of China. The objective of the

visit was to prospect investment opportunities, particularly in real estate and hotel development.

The Chinese delegation was led by Mr Zhu Xianliang, Senior Advisor at the Wenzhou Municipal Govern-ment. Mr Zhu Xianliang stated that Mauritius has a very good industrial base with an excellent investment

climate and proper infrastructure. Mauritius is also a safe location for business and enjoys a good reputationinternationally.

18


21/33

Wenzhou delegation at BOI HQ in Port Louis

Mr Xianliang concluded that he will encourage Wenzhou entrepreneurs to consider Mauritius in their out -ward investment plans.

Mr Seewraj Nundlall, Director at BOI, presented them with the business and investment climate in Mauritius,as well as sectors of opportunity.

Photo (left): Mr Zhu Xianliang, Senior Advisor at the Wenzhou Municipal Government

Photo (right): Mr Seewraj Nundlall, 3rd from the right

Wenzhou is a prosperous city in China. Wenzhou businessmen have invested in all parts of the world, andWenzhou is also a popular destination of FDI in China. The per capita income of Wenzhou is the third high -est among Chinese cities. The delegation invited BOI to visit Wenzhou with a view to deepen the business

exchanges and cooperation between their city and Mauritius.

19


22/33

Some 250 participants at the rst ICT/BPO

Conference and Networking Forum in

Mauritius

The Mauritian ICT/BPO industry is emerging as one of the most promising sectors averaging a GDP contri-bution of 6.4% in 2010. In view of propelling growth, the Ministry of ICT in collaboration with the ICT industryand the Board of Investment (BOI) organized the rst ICT/BPO conference on 5th 6th October at Le Me-ridien Hotel, Pointe aux Piments, Mauritius.

1st from left: Prime Minister of Mauritius, Dr the Hon Navinchandra Ramgoolam, GCSK, FRCP and

2nd from left: Mauritian Minister of ICT, Honourable Tassarajen Pillay Chedumbrum

The event was ofcially inaugurated by the Prime Minister of the Republic of Mauritius, Dr the HonourableNavinchandra Ramgoolam, GSCK, FRCP, in the presence of the Honourable Tassarajen Pillay Chedum-brum, Mauritian Minister of ICT, and Mr Swami Swaminathan, Chief Executive Ofcer and Managing Direc-tor, Infosys BPO. The conference aimed at enhancing the visibility of Mauritius as an established ICT-BPO

destination by showcasing the various achievements and capabilities in the sector. It also served as an

ideal platform for assessing the potential of Mauritius and the role that the country will be playing within thenew economic order.

The conference was attended by some 250 local and international participants representing the African,Asian and American continents. Key speakers included Atul Vashista, Chairperson of the Neogroup, Ian

Marriott, Research VP at Gartner, Jerry Durant, Chairman Emeritus and Soumitra Dutta, Academic director

at INSEAD, and co-editor of Global Information Technology and many other high caliber professionals from

the public and private institutions.

In his opening address, the Prime Minister stated that the ICT/BPO industry represents a signicant marketand that Mauritius has the potential to be a global player in this arena. He added that all the key elements

have been factored in by the Government in view of translating the vision of an I (Intelligent)-Mauritius

into a reality. Moreover, Dr Ramgoolam expressed his determination to bridging the digital divide and alsoencouraged greater social cohesion. He announced a revolution in the telecoms landscape of the country

with the implementation of the Fibre to Home Project.

20


23/33

On his part, the Minister of ICT announced that the National Broadband Policy, which spells out the strategicvision for an Intelligent Mauritius, will be nalized soon.

The Managing Director of the Board of Investment (BOI), Mr. Ken Poonoosamy, was the moderator of therst panel session Mauritius: Capitalizing on the Opportunities within the new Global Landscape. Themembers of the panel were Ian Marriot, Atul Vashista, Swamy Swaminathan and Yves Bernaert.

There are numerous opportunities ahead and each country can get a share of the pie but for Mauritius to

emerge out of this lot, it is imperative that the country brands itself. The perception of Mauritius being more

of a tourist destination rather than a business one is still strong and highly prevalent. All the panelists con-curred to the fact that Government should maintain its facilitator role and that efforts should be geared

towards more PublicPrivate Partnerships. The strategy should be more on Job Creation rather than im-posing taxes as the former provides more space for economic growth and prosperity. During this session,Yves Bernaert from Accenture announced that the group will be soon increasing its activities in Mauritiuswhich will lead to a doubling of its manpower size.

Throughout the conference, the various panelists and participants agreed that Mauritius should capitalize

on its key attributes such as its political and socio cultural stability, and the competitive labor costs and posi-

tion itself more as a springboard to the African continent. With the huge number of opportunities unfolding in

Africa, the Mauritian ICT/BPO industry will be set to play a pivotal role in facilitating those investments andserve as an ideal platform.

21


24/33

Hewlett Packard sets up ofce in Mauritius

Hewlett-Packard (HP), a Multinational Computer and Electronics specialist, announced the opening of itsnew ofce in Mauritius on 4th October 2011, as part of its expansion strategy on the African Continent. Inthis regard, the group has also signed a Memorandum of Understanding with the Ministry of Information andCommunication Technology for collaboration between HP and the ICT Academy.

The representative ofce will be targeting both local and international customers across Africa who will nowhave better access to HPs broad portfolio of products and services.

Santiago Cortes, Vice-President and Managing Director of HP Middle East, Mediterranean and African re-

gion, explained in his inaugural speech that the expansion is part of HPs recently announced strategy for

accelerating growth in the worlds fastest-growing markets by creating go-to-market strategies. The choicefor Mauritius was largely driven by the countrys enduring stability as well as by the dynamic growth in theICT/BPO industry.

Through the ICT Academy, HP would be engaged in the provision of specialized training to Mauritian gradu -ates. This initiative will not only foster the development of a local skilled workforce but also underpins HPscommitment in contributing to the growth of the burgeoning ICT industry in Mauritius.

22


25/33

The IMF opened an Africa Regional Technical

Assistance Centre in Mauritius

The International Monetary Fund (IMF) ofcially opened its fourth Africa regional technical assistance center(AFRITAC) in Mauritius this month, with a view to offering capacity building services to 13 countries acrossSouthern Africa and the Indian Ocean.

VPM and Minister of Finance, Hon Xavier Duval (2nd from the left), proceeding to the ofcial launch of AFRITAC (South) in

Mauritius in the presence of IMF Deputy MD, Min Zhu (3rd from the left) and Governor of the Bank of Mauritius, Rundheers-

ing Bheenick (1st from left)

This is a bright day for capacity building in Africa, IMF Deputy Managing Director Min Zhu told donors,delegates, and staff at an opening ceremony in Mauritius. Mr. Zhu said the opening of the center, knownas AFRITAC South, was a critical milestone in the IMFs Africa Capacity Building Initiative, which waslaunched in 2002. The initiative seeks to strengthen the capacity of African governments and institutionsto design and implement sound macroeconomic policies consistent with their poverty-reducing strategies.

The Mauritian Vice-Prime Minister and Minister of Finance and Economic Development, Hon Xavier-LucDuval, GCSK, stated, on his part, that Africa has a huge potential and is witnessing a satisfactory levelof economic growth despite the difcult global economic situation. Mauritius is deeply in favour of regional

integration as illustrated by the support of the Government to the launching of AFRITAC (South).

The new center, located in Port Louis, Mauritius, serves Angola, Botswana, Comoros, Lesotho, Madagas -car, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Zambia, and Zimbabwe. It com-plements three existing AFRITACs: AFRITAC East opened in 2002 in Dar es Salaam, Tanzania; AFRITACWest opened in 2003 in Bamako, Mali; and AFRITAC Central, opened in 2007 in Libreville, Gabon. Thefour centers cover 38 sub-Saharan African countries. A fth and nal AFRITAC is planned to open in Accra,Ghana, in the future.

Like its sister ofces, AFRITAC South will provide capacity-building assistance through a team of interna-tional resident experts, supplemented by short-term specialists, who will deliver assistance in the IMFscore areas of expertise. Those areas include nancial sector supervision, monetary policy and operations,tax and customs administration, public nancial management, and macroeconomic statistics. The center isheaded by a coordinator and is guided by a steering committee whose members represent the beneciarycountries, donors, and the IMF.

(Source of article: International Monetary Fund)

23


26/33

Non-citizens holding PR permit can buy

specic residential apartments in Mauritius

On Friday 07th October 2011, the Cabinet of Ministers of the Republic of Mauritius has agreed to a non-citizen, who has been granted a Permanent Residence Permit under the Immigration Act, being allowedto purchase an apartment in a block of residential dwelling of not less than three storeys as his personalresidence, instead of as in the past. With a view to giving a boost to the construction sector, the constructionworks for the three-storeyed building in which the apartment is located, need to have started after 1 January2010. Applications should be made at the Board of Investment.

Aerial view of Grand Bay, Mauritius

24


27/33

Mauritius introduces Limited Partnerships

The long awaited Limited Partnership legislation was voted without any amendments on 18 October 2011 inthe Mauritius National Assembly. The introduction of this legislation is a further step towards the continuousinnovation and modernization of the nancial offerings of Mauritius as a lead nancial center of substancein the African region.

The bill, which will shortly be assented by the President of the Republic of Mauritius, aims at enhancing theuse of the Mauritian investment platform primarily by US based Private Equity funds foraying investment

opportunities in African and Asian markets. Some of the salient features of the newly voted legislation areas follows:

Registered LP can elect to be tax neutral in Mauritius, thus implying that income would be effectivelytaxed in the hands of the partners instead of the registered LP structure

A limited partnership may be formed in Mauritius to carry on any lawful business within Mauritius orelsewhere. Unless otherwise specied in the partnership agreement, a limited partnership shall have acontinuous and successive existence, through its present and future partners until its dissolution

Limited partnerships can elect to have legal personality or not, and, if they have not done so, they canelect to do so at a later stage with the consent of the Registrar

Limited partnerships must have one or more general partners and one or more limited partnersUnless at least one general partner is resident as a natural person in Mauritius or incorporated, formed

or registered in Mauritius, every limited partnership shall at all times have and maintain a registeredagent in Mauritius

Possibility for foreign limited partnerships to be migrated and continued in MauritiusGeneral partners are jointly and severally liable for the limited partnerships debts and obligations, butlimited partners are only liable to the extent of their agreed contributions, unless they participate in the

management of the limited partnership

Limited partnerships must have a partnership agreement and maintain: a register of partners

an account of capital contributions and returns

accounting records

minutes of meetings of the general partners

copies of all documents led with the Registrar

25


28/33

A Joint Public-Private Sector Business Facilitation Task

force set up to enhance the business environment of

Mauritius

In the wake of the current global nancial crisis and challenges facing the Mauritian economy, the Cabinetof the Republic of Mauritius has agreed, on Friday 14th October 2011, to the setting up of a Joint Public-Private Sector Business Facilitation Task Force to further improve ease-of-doing business, identify andeliminate weaknesses encountered by businesses, and put in place the right conditions for attracting invest-ment and enhancing trade with a view to positioning Mauritius as an attractive business location.

The rst meeting of this Business Facilitation Task Force was held on Tuesday 25th October 2011. Two co-presidents were appointed to lead the task force namely Mr Ali Michael Mansoor, the Financial Secretaryof the Ministry of Finance and Economic Development and Mr Raj Makoond, the Director of the Joint Eco-nomic Council which is the coordinating body of the Mauritian private sector.

In the rst instance, the Task Force has identied ve specic priorities to work on, namely:

Land Conversion Permit, Morcellement Permit, Environment Impact Assessment Permit, Tourism permits, Building and Land Use Permit, International Trade Facilitation permits, and Public Utilities permits.

The BOI will be working in very close collaboration with this Task Force to continuously improve the busi-ness environment of Mauritius and assure investors of a timely unlocking of projects.

Port-Louis by night

26


29/33

Forbes Survey of Best Countries for Business

ranks Mauritius 1st in Africa and 19th world-

wide

Forbes, a prestigious American publishing and media company, released its survey of the Best Countriesfor Doing Business this month.

Forbes places Mauritius 19th globally and 1st in Africa in terms of Best Countries for Doing Business in2011. With this new ranking, Mauritius moves up 9 places on this Forbes index from 28th worldwide lastyear to 19th this year. According to the survey, in terms of Best Countries for Doing Business, Mauritius is

ahead of countries like Germany, Japan and South Korea just to cite a few. Forbes Magazine determinedthe Best Countries for Business by looking at 11 different factors for 134 countries namely property rights,

innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor pro-

tection and stock market performance. This year, Canada tops the list of Forbess Best Countries for DoingBusiness followed by New Zealand and Hong Kong.

27


30/33

Mauritius tops the Mo Ibrahim Index of

African Governance for the 5th consecutive

year

The 2011 Ibrahim Index of African Governance was released on Monday 10th October 2011 by the prestig-ious Mo Ibrahim Foundation. For the fth year in a row, Mauritius tops the Ibrahim Index of African Govern -ance which is the most comprehensive collection of quantitative data that provides an annual assessmentof governance performance in every African country.

The Ibrahim Index provides a framework and tools for citizens, public authorities and partners to assessprogress in governance. It compiles 86 indicators grouped into four overarching categories, namely safety

& rule of law, human development, sustainable economic opportunity, participation & human rights, in orderto measure the effective delivery of public goods and services to African citizens. The 2011 Ibrahim Indexincludes new indicators in the following areas: physical and telecommunications infrastructure; gender;health; welfare service provision; and economic management.

28


31/33

Mauritius remains the easiest place to do

business in Africa according to the World

Bank Doing Business Report 2012

In the World Bank Doing Business Report 2012, launched on 19th October 2011, Mauritius is ranked 23rdglobally and the easiest place to do business in Africa. The Doing Business report assesses regulations

affecting domestic rms in 183 economies and ranks the economies in 10 areas of business regulation,such as starting a business, dealing with construction permits, registering property, getting credit, protectinginvestors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

This year, the rankings on ease of doing business have expanded to include a new indicator - Getting Elec-tricity and changes have been brought in the methodology of the Getting Credit Indicator and the Paying

Taxes.

Mauritius is cited in the report as being the regions strongest performer on Doing Business Indicators and

many countries in Africa look to it as a good practice for business regulation reform.

Singapore is the leader in the overall ease of doing business, followed by Hong Kong SAR, China; NewZealand; the United States; and Denmark. The Republic of Korea is a new entrant to the top 10. The 12economies that have improved the ease of doing business the most across several areas of regulation as

measured by the report are Morocco, Moldova, Macedonia, So Tom and Prncipe, Latvia, Cape Verde,

Sierra Leone, Burundi, the Solomon Islands, the Republic of Korea, Armenia, and Colombia.

The global report shows that governments in 125 economies out of 183 measured implemented a total of245 business regulatory reforms13 percent more reforms than in the previous year. The report reveals

that getting an electrical connection is most efcient in Iceland, Germany; Taiwan, China; Hong Kong SAR,China; and Singapore. In Mauritius it takes 4 procedures and 91 days.

Worldwide the trend was for economies to implement reforms mainly aimed at strengthening courts, insol-vency regimes and investor protections. Twenty-nine economies implemented insolvency reforms, up from16 the previous year and 18 the year before. More and more economies are strengthening their insolvency

regime against the backdrop of the global nancial and economic crisis.

With a view to further improving the ease of doing business, a Joint Public-Private Sector Business Facilita-tion Task Force has been set up. The Board of Investment (BOI), in its role as facilitator will be working in

close collaboration with the concerned Ministries and agencies.

29


32/33


33/33

Board of Investment

Level 10, One Cathedral Square Building16 Jules Koenig Street

Port Louis

Mauritius

Tel: (+230) 203 38 00Fax: (+230) 208 29 24

Email: [email protected]

Website: www.investmauritius.com

boi newsletter - october 2011

Documents