For Mauritius, After India, Africa May Be The Next Bonanza

by Lorys Charalambous, Tax-News.com, Cyprus

30 September 2002

Interviewed in the 2002 Mauritius Financial Review, Chief Executive of the new Financial Services Commission, Iqbal Rajahbalee explains how the country is restructuring its financial services sector. Pointing to healthy growth rates of 5-6% a year as proof that Mauritius is successfully integrating itself into the world-wide economic community, Mr Rajahbalee says that the new legislation put in place last year is just the beginning of the restructuring process.

2001 saw the introduction of a new Companies Act, a new Financial Services Development Act (which established the FSC) and a new Trust Act. Mr Rajahbalee says that three further pieces of legislation are about to be issued for public consultation, covering collective investment, securities intermediaries and the insurance sector. The banking sector, he says, will be next.

The key focus of the growing financial services sector is on the facilitation of investment flows in the regions around - India, Africa and the Far East. Despite some current problems with interpretation of the India/Mauritius Double Tax Treaty, the island seems to be making progress towards that goal. Roger Winfield, head of Deutsche Bank's local subsidiary, is full of praise for the government's involvement with business, and says that local skill levels are high enough to allow rapid expansion of the Bank's operations - which is what he is planning.

Winfield says that although long term he is very interested in countries such as South Korea, Thailand and Malaysia, the next wave of activity for Mauritius may focus more on South Africa. Most of the major players from there have already set up on the island and he says that great interest is being shown.

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