Why do French companies relocate to Mauritius?
With its beautiful beaches and charming surroundings, Mauritius is a famous tourist destination. However, it is less known for its business ecosystem, favourable to foreign companies looking to establish themselves on the island.
This International Financial Centre (IFC) is conducive to business and consists of several elements: its diversified, solid and stable economy; its bilateral and multilateral relations; its hybrid legal system; its international arbitration centre; and its effective system of good governance, amongst others.
Indeed, Foreign Direct Investment (FDI) flows for the first three quarters of 2017 increased by 16%. The main sectors benefitting from this rise in investments are real estate, financial services and construction. Also, more than 50% of FDIs come from France and Luxembourg.
According to Nitin Collappen, Managing Director of Sunibel Corporate Services: « international indices rank Mauritius 1st in Africa on many aspects including the ease of doing business (20th internationally on the World Bank’s ‘Ease of Doing Business’ ranking) or the Ibrahim Index of Governance in Africa (IIAG). It clearly demonstrates that Mauritius is a favourable and preferred platform for investments in Africa. Furthermore, with its bilingual and qualified workforce, Mauritius is a natural and advantageous platform for companies looking to expand their activities on the continent.»
The French, with more than 15,000 in Mauritius, rank first among expatriates. Nikhel Chung Sam Wan, Head of Business Development at Sunibel Corporate Services, explains that those who have taken the plunge in positioning their Mauritian structure within their strategy are very satisfied. « With its tropical climate and ideal living environment, the Mauritian business ecosystem offers a balance between work and relaxation.»
In addition, Mauritius is among the first countries to sign the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports of the Organisation for Economic Co-operation and Development (OECD) in June 2015. These steps reflect the will of the Mauritian government to promote the country as a transparent IFC that attracts capital flows and ensures the security of assets.