The evolving economic landscape, investment opportunities and improved business climate of Mauritius

The evolving economic landscape, investment opportunities and improved business climate of Mauritius

Mauritius Embassy,Cairo, Egypt

www.investmauritius.com

1. Overview: The Mauritius Economy

2. The Mauritius Business Environment

3. Investment Opportunities

Agenda

The MauritiusEconomy

Dynamic & diversified economy

Political, social and economic stability

Strong and supportive private sector

Established rules of law with the Privy Council as the Highest Court of Appeal

Mauritius Attributes


Evolving Economic Landscape

USD 320* Sugar

USD 1,000 Textile Sugar Tourism

USD 2,500 Textile Sugar Tourism Financial Services ICT Freeport

USD 7,500 Textile ICT Financial Services Seafood Logistics Property Development Healthcare & Life Sciences Knowledge Renewable EnergyMONOCR

OP

INDUSTRIAL

SERVICES

INNOVATION DRIVEN

USD 20k by 2020s

* GDP per capita


Sectoral GDP Contribution (2010)

Manufacturing 18.4%

Construction6.9%

Retail 11.8%

Hospitality7%

Logistics9.5%

Financial In-termediation

10%

Real Estate 12.3%

Public Admin-istration

6.1%

Education4.4% Healthcare

3.6%




Agenda

Start a business in 3 working days

No minimum capital requirement

100% Foreign ownership

Delivered In 3 working days Silent agreement principle Total issued to date: 8654

Start Up

Occupation Permit

Property Acquisition

The MauritiusBusiness Environment

New Business Environment

Facilitate property acquisition

Ex post control

Homogenised 15% corporate tax Personal Income tax set at 15% Local government tax

Free movement of Capital

Acquisition of property by non-citizen

Land transfer & Registration Duty at 5%

Taxation Exchange Control Land Acquisition


Mauritius Fiscal Regime


International Benchmarks

INDEX RANK Index of Economic Freedom 2010

World Bank Doing Business Survey 2011 Ibrahim Index of African Governance 2010 Global Competitiveness Index 2010 - 2011

12th out of 179 countries -1st in Africa 20th out of 183 countries -1st in Africa 1st out of 48 African countries

55th out of 133 countries


FDI Inflows (1997 – 2010)

36.39.1

40.4

227

29.3 30.6

61.4

56.1

87.7

93.6

240.7

383.8380.6

293.1

464.9USD millions




Agenda

From Sugar to Cane Industry

InvestmentOpportunities

Sugar Sector Strategic Plan & Multi Annual

Adaptation Strategy

Cost reduction through

centralisation and clustering process

Energy Production via renewable resources Development of

an efficient cane industry: white & special sugar, ethanol

Evolution of Manufacturing Sector


1970s- 1980s 20101990s – 2000s

Nascent Manufacturing

Vertical Integration of the Textile Industry

Value Addition & Diversification

Bulk ApparelManufacturing

JewelleryProducer’s Designs (Brands)

Fashion IndustryPrecision ManufacturingMedical Devices

Manufacturing Sector


Actual contribution to GDP: 18.3%FDI: In excess of MUR 1 billion - 2010

FDI Evolution for past 5 years

181271

149

485

1,026

Evolution of Seafood Industry


1980s

2010s

2000s

1990s

Tuna canning- Tuna fishing & canning for export

Modern Fisheries- Diversification of

fishing activities

- New technologySeafood Hub- Fish processing & storage facilities- Fish transshipment- Ship repair and other services

2010 Marine Sustainability- Large scale aquaculture

- Offshore fishing farms- Sustainable development

Exclusive Economic Zone of 1.9 million km²

Support Agencies & Infrastructure

Cold Supply Chain Readily available

Market Access

Exclusive Economic Zone


Property Development Landscape


1980s

2010 Onwards2000 Onwards

1990s

- Hotels

- Hotels- Commercial- Office

- Hotels- Commercial- Office- IRS- RES

- Hotels- Commercial- Office- IRS- RES- Mixed Use- Invest-Hotel

0

100

200

300

400

500

600

700

20 49 6598

133161 177

214258

299351 376387 391 405 426

482510

544 566608

639689

Cumulative Sales of IRS & RES villas


Cumulative Sales - Units

USD 82 million

USD 387 million

USD 831 million

Hospitality & Property Investment


7 7 17 43103

234 196 205275

391495 554 504

632

887

1157 11861198 Total Investment

Foreign Investment

USD million p.a

Source: BOM FDI Statistics;* BOI provisional forecasts 2010

Nationality of IRS & RES buyers


Nationality – RES Buyers

Indian 3%

South Africa

n 41%

Mauritius 11%

British3%

French

36%

Swiss 4%

South Africa

n 30%

Mauri-tius9%British

20%

French

37%

Nationality – IRS Buyers

Future Developments


Industrial parksReal Estate (IRS, RES, Mixed Use)HotelKnowledgeHospitals


Regional Logistics HubTransshipment by Port of Discharge:

The most competitive port in the region: Low Port Dues and Cargo Handling CostNew utilization rate: 57 per cent (700 000Teus)


Container Traffic

Total Transshipment Containers

Total Containers

YEAR 20101980 20, 7122010 332, 662

Total Container Traffic

TransshipmentYEAR 20101980 02010 109,992

CAGR of 10%


Freeport PerformanceVolume (tons)

CAGR 18%

20,956

323,000

1.52.5

5

Cumulative Investment (MUR Billion)


Evolution of ICT-BPO IndustryBreak through: Connection to SAFE International Fibre Optic Cable

2002 2004 2006 2008 2010

72 companiesData Entry and Telemarketing activitiesEmergence of Mauritius as a Disaster Recovery and Business Continuity hub

148 companiesShift towards more value added domain , software development activities

258 companiesMauritius positioned as a Data Centre hub

400 companiesPromulgation of DPA ActFirst Certified TIER IV Data Centre in the Indian Ocean


ICT/BPO Industry

Mauritius42%

Asia Pacific6%Indian Ocean Islands

3%With a Mauritian

Partner4%

Europe40%

USA, Canada & Car-ribean islands

2%

South Africa & other African Countries

4%

Job Creation

3,8015,513

6,960 10,440

11,435 15,000

Sources of investors

Contribution to GDP (%)

5.3

5.45.5

5.3

5.7

6.4

Evolution of Financial Services Sector

1992 2004 20102001/2002

2007/20081838

Creation of first commercial bank in Mauritius

Launching Mauritius as an ‘offshore’ centre

New financial products & strengthening of the Regulatory frameworkAnti Money Laundering Act 2002

Introduction of the single banking license

Legislations for New Investment Products

Moving to Substantive, High Value Added Services


Your IFC for Emerging Markets InvestmentGeographical Breakdown: Source of Investment

Geographical Breakdown:Investment through GBC1

America

30%

Asia26%

Eu-rope24%

Africa16%

Others4%

Asia 77%

Africa

13%

America2%

Europe4%

Others4%


* Figures as at June 2010

Capital Market Transactions

Breakdown of Foreign Investment on SEM


United Kingdom

35%

Hong Kong2%United States

30%

Ghana1%

Ivory Coast

2%

Euro-pean Union13% Others

8%

South Africa

6%Cayman Islands

3%

First exchange in Africa to list, trade and settle in USD, Euro and GBPRecognised by UK’s HMRCTotal Annualised Return: approx 18%First multi asset class exchange in this region (Turnover > 50 Million USD)


Emergence of Mauritius as a Medical HubContribution of Healthcare sector to GDP (2010): 3.6%

2005: 1000 foreign patients visited Mauritius Emerging as a medical travel destination with 500 beds

2006: Business Facilitation Act promotes foreign investment in medical institutions 2007-2009: Increasing FDI in

Healthcare sector. Major international players invest in high quality specialty and multi-specialty centers.

2010: Above 10,500 foreign patients seeking outpatient & inpatient treatment in Mauritius

2010 - 2011: Preparation of Clinical & Preclinical Research Legislation

2011: 800 beds in private sector and 3,500 beds in public sector

2020: Target of 100,000 foreign patients


Overview of the Healthcare SectorTreatment Areas Number of Private

Clinics

12 13 13

1720 20

Chiropractors10%

Fertility8%

Hair Treatment

3%

ENT1%

Cosmetic And Plastic

surgery25%

Cardiology18%

Others12%

Or-thopaedics

12%

Dentistry11%


Evolution of foreign patients seeking treatment in MauritiusMedical travel: an eight-fold increase over four years

Source countries of foreign patients

South Africa8% Comoros

3%Rest of

the World13%

Mada-gascar28%

Sey-chelles

15%

France14%

Reunion Island14%

UK5%

1,000 1,500

5,0008,500

10,600

Knowledge Sector


Free Education by the Government

Creation of the 2nd Public University: University of Technology, MauritiusEnrolment in Tertiary Education: 17,000 students

2005

Setting up of Study Mauritius Office61 higher educational institutions

Construction of new campuses by the Government

Dedicated Ministry for Tertiary Education, Science, Research and Technology More than 41,000 students enrolled in Tertiary Education

The Tertiary Education Commission (TEC) regulates private post-secondary education institutions

1976

2000

2010

2011

2012

Knowledge Sector


1,000 foreign students are studying in MauritiusTarget: 100,000 students by 2020

African10% Euro-

pean9%

Re-gional4

2%

Asian39%

Breakdown of Foreign Students by Region


New Sectors & Opportunities

Thank You

Embassy of Mauritius, Cairo

Documents

The evolving economic landscape, investment opportunities and improved business climate of Mauritius