My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

International Business

Why South African Businesses Are Choosing to Operate From Mauritius

Mauritius used to be all about its beaches. Today, it's becoming a big business player, not only in Africa, but on a global scale. Here's why.
Why South African Businesses Are Choosing to Operate From Mauritius
Image credit: Bigstock
Contributor
Founder, The Business Exchange
4 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

Mauritius may just be an island – its annual tourist influx of 1.4 million outnumbers its own population of around 1.3 million – but this hasn’t stopped it, over the past three decades, from growing into a giant on the business front.

As far as the continent goes, it’s already racked up a number of African ‘firsts’ in terms of international business achievements. These include Economic Freedom of the World (2017, Fraser Institute), Forbes Survey of Best Countries for Business (2017) and the Global Competitiveness Index (2017-2018).

Related: SA Entrepreneurs Who Built Proudly South African Businesses

It also secured first place in Africa and 25th position overall out of 190 countries on the World Bank’s Ease of Doing Business Report, receiving recognition in terms of its political, social and economic stability, efficient and effective regulatory framework, state-of the-art infrastructure, transparent and innovative legal framework and its highly competitive tax system.

Attracting International Business

With a government focused on promoting foreign and domestic investment, Mauritius has enabled free repatriation of profits, no withholding tax on dividends, interest and royalties, no capital gains tax, and no estate duty, inheritance tax or gift tax. Plus, it has 44 tax treaties with countries across the globe, and another 32 in various stages of negotiation and ratification.

Together with its low tax rates, its fiscal regime has seen it being listed in 2017 on the Organisation for Economic Co-operation and Development (OECD) ‘white list’ in terms of transparency and being a fully compliant tax jurisdiction in terms of best practice international standards. It was, indeed, one of only three such top-rated jurisdictions in the world.

It is welcoming foreigners with open arms and – as a country in Africa – it’s certainly giving South Africa a run for its money.

Along with 4% growth in its economy, its reputation is also growing for being the best financial hub and base for businesses coming to Africa.

Related: 10 Cheap Businesses You Can Start In South Africa Aimed At The Local Market

Investors from places such as France, India, and the UK – not to mention South Africa itself – are all seeing it as a safe place to set up shop.

It’s why we, as The Business Exchange (TBE) with our own home base in South Africa, have set up our latest co-working space here, to meet the growing demand for office space on the island. It’s a destination we believe is out-investing South Africa

The Case for Mauritius

A safe investment climate, efficient financial infrastructure and political stability are always going to be highly conducive towards attracting and conducting business.

Little over an hour longer in flying time than the time it takes to travel between Cape Town and Johannesburg, the third smallest country in Africa is therefore becoming an attractive destination in which to live, work, play and stay… quite possibly forever.

Its private and government institutions are strong. Good schooling (in English with French as a second language), state-of-the-art healthcare facilities, and a low crime rate are starting to see a number of South Africans turning their heads north in its direction – families as well as companies. 

Related: 11 Uniquely South African Business Ideas

As a property ownership destination, it’s already been proving its worth for a number of years now, initially for holiday and second homes but, today, increasingly for residency, relocation and retirement.

A huge attraction for investors and in particular those looking to attain passive rental income, has been its property development schemes for foreign non-citizen investment. An investment of $500 000 or more in a PDS will also grant an investor permanent residence status.

And, as we ourselves have found as TBE, there’s a great deal that’s attractive to invest in from a business perspective as well.

Not only is there an ideal opportunity for us to service the rapidly growing need for professional office space on the island, we’ve also decided to use the country as the perfect base from which to launch our own growth into the rest of Africa.

Legislation around setting up companies and ownership structures in Mauritius are quite straightforward, and relatively simple to administer with the right partners and advisors on board.

It may well have been a place of beaches to start with, a few decades ago – and, believe me, those pristine sands are still just as beautiful – but its business opportunities are now among its biggest attractions.

And as South Africa continues to reflect uncertainty, I’ve no doubt that Mauritius’s positive offerings will continue to grow even brighter.

Related: 20 Innovative Business Ideas Doing Well Overseas (That Could Make You Money In SA)

More from Entrepreneur

Terry's digital marketing expertise can help you with campaign planning, execution and optimization and best practices for content marketing.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur