Mauritius

Mauritius emerges as one of the shining stars of Africa’s economic success stories, swiftly emerging as a country that has moved on from being a volatile and mono-crop economy at the time of independence to becoming one of the most diversified and upper-middle-income economies in the region. Strategically positioned within the southwest part of the Indian Ocean, the nation-state has managed to position itself as a reliable financial link between the investments of Asia, Europe and the African continent. Its economy thrives on strong foundations that include financial services, tourism, information technology and manufacturing.

As far as risk is concerned, Mauritius is quite resilient on the macro level, although still vulnerable to a number of externalities. As it is a SIDS, the primary risk associated with Mauritius is environmental/climatic risk. It is highly vulnerable to sea-level rise, unfavorable weather, and tropical storms. As such, the coastlines of the country, which form the major source of income for the country (that is, tourism), are quite vulnerable. In addition, because it is an open and export-oriented economy, the country is also vulnerable to market risks.

The governance structure in Mauritius is remarkably stable and features a strong multi-party parliamentary democracy as well as an unwavering dedication to the principle of the rule of law. The presence of free and fair elections facilitates the sustenance of the democracy and smooth transfer of power. The nation follows an extremely robust hybrid legal system which combines English common law and the French civil code, offering a clean environment for the settlement of commercial disputes. This makes the nation a leader within Sub-Saharan Africa in terms of governance based on international benchmarks such as the Ibrahim Index of African Governance.

The country is renowned as a leading, clean international financial center in the sphere of compliance. After successful delisting from the FATF grey list, Mauritius has rapidly reformed the existing regulatory oversight. Both the Bank of Mauritius and the Financial Services Commission are very strict in enforcing the AML/CFT regimes. It is completely compliant with the international standards of OECD Base Erosion and Profit Shifting and keeps beneficial ownership registers. Through a focus on automated reporting, tax transparency, and cross-border regulatory compliance, the financial system of Mauritius is protected from illegal flows, and the country remains a safe and extremely competitive jurisdiction for foreign investment.