Mauritius as an international financial centre and the The MIFC’s road to going global

“Mauritius offers investors the advantages of an offshore financial centre in the Indian Ocean, with a substantial network of treaties and double-taxation avoidance agreements, making it the gateway for routing funds into Africa and India”—UNCTAD World Investment Report.

Once hailed as the “star and key of the Indian Ocean” for its spice-route perch, Mauritius retains that motto—emblazoned in Latin on its coat of arms, flanked by palms and the extinct dodo. Policymakers still spy a nexus for trade and investment, forged over two decades in cross-border finance.

Straddling Asia and Africa, the island styles itself an “international financial centre of excellence and repute”, per Finance Minister Pravind Jugnauth.

Its offshore arm dwarfs the rest: the IMF dubs it “enormous”, with $630bn in assets—50 times GDP. Only Luxembourg eclipses it in FDI-to-GDP ratios. “Investors prize Mauritius for commercial savvy, top-notch service, robust legal and regulatory frameworks, and sterling repute,” says Ravin Dajee, CEO of Barclays Bank Mauritius.

Though offshore jobs number mere thousands and tax take under 7%, it buttresses the balance of payments.

A web of investment-protection pacts and double-tax deals, quality focus, flexible-yet-firm regulation, business-friendly airs and institutional heft have propelled its rise, per Sunil Benimadhu, CEO of the Mauritian Stock Exchange. OECD “white-list” status seals the deal, with regulators like the Financial Services Commission and Bank of Mauritius enforcing global norms—from FATCA adoption to SADC and COMESA membership.

Yet storm clouds gather. A global tax-avoidance backlash pins $100bn in annual revenue losses on offshore havens like Mauritius, per the UN. G20 finance ministers have inked rules to curb profit-shifting. India—channelled a third of its FDI via Mauritius this century—tweaked their tax treaty in 2016; by 2019, the arbitrage evaporates.

Tax planners scramble for workarounds, while Mauritius pivots to African inflows, deepening ties. “The India-treaty shift will spur long-term evolution in our offerings; we'll adapt, for Mauritius has the mettle,” says Tej Gujadhur, CEO of GFin Corporate Services.

Foreign Minister Vishnu Lutchmeenaraidoo concurs: “Now we fortify bonds with Kenya, Mozambique, Zambia, Tanzania, Madagascar, Senegal and Ghana. Africa is the game.”

The tax-centric lure must evolve, too. Anti-treaty-shopping edicts demand substantive presence, beyond brass plates and local directors. Mauritius woos deeper roots: regional HQs, treasury hubs, law firms, funds and asset managers, sweetened by tax perks. Finance Minister Jugnauth's latest budget heralds this “new thrust” for financial services.

The blueprint? An ancillary-services ecosystem to amplify finance, which transcends offshore alone. “Mauritius needs now

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