Mauritian Banking & Financial Services Sector: The next global hub?

“There is no miracle. It is due simply to hard work, discipline, and will.”—Sir Anerood Jugnauth, former president of Mauritius.

Meagre in size, resources and proximity to markets, Mauritius has nonetheless morphed from sugar-dependent penury into Africa's standout success. Its financial services now anchor the economy.

Recent figures peg the sector at 12% of GDP, expanding at 5.3%, per the Financial Services Promotion Agency (FSPA). With such alchemy, the island eyes a bridge for East Africa-India-China flows.

Sturdy institutions, political calm, business verve and shrewd trade pacts—with India and Europe—have diversified and turbocharged finance.

“Mauritius is ascending as Africa's trade portal. Our international financial centre could host 50 banks in three years; transformation and growth are inevitable,” insists Sridhar Nagarajan, CEO of MauBank, a domestic heavyweight.

Business climate and lures explain much: no capital curbs, steady currency, 15% flat corporate tax, myriad double-tax accords. These often trump bigger hubs.

“The sector is sophisticating apace, proffering regional treasury, cash management, payment innovations and capital-market aid. It's the go-to for African bets; stats show heaps of FDI routed via Mauritian vehicles,” says Barclays' Mr Dajee.

Mauritius Commercial Bank's Anthony Withers chimes in: “An international financial centre of substance—trustworthy, well-regulated, a gateway betwixt developed world and beyond.”

He cites $600bn managed through its global platform for India, Africa and China: “Fund managers grasp the legal-accounting setup; no bar to further bloom.”

High rankings for ease of business testify. Over four decades, Mauritius revamped finance: new laws, regulators (Mauritius Offshore Business Activities Authority, Financial Services Commission, Stock Exchange of Mauritius) and a dedicated ministry.

This rigour buffered recent global jolts. Now it eyes value-adds: international banking, fiscal stewardship, capital-raising, regional treasury.

“As Africa's cross-border catalyst, Mauritius leverages location, stability and rules to beckon global cash,” says FSPA's Harvesh Seegolam.

Challenges persist at this crossroads. Indian and multinational Africa HQs must be courted; targeted outreach to South African, Indian, African and European lenders; the Stock Exchange of Mauritius as a multi-currency haven for African ventures and dual listings.

Short-term, growth hinges on embracing BEPS rules—

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