Towards African Investment: Mauritius Cements Itself As One Of Africa’s Top International Financial Centres
With the right policies, investment and collaboration, the International Financial Center Africa (IFC) has the potential to transform Africa’s economic landscape and bring the continent on par with the world’s economic giants.
benefits International Finance Corporations come in many formsproviding access to international financial services and an effective regulatory regime to facilitate trade, reduce overall costs and help reduce investment risks. as The Cato Institute noted in its analysis of the International Finance Corporationtheir power goes beyond local interests, i.e. they “add competitive pressure to the global ‘legal market’ and therefore encourage domestic economies to enact better laws”. These transnational regulatory environments, e.g. African Continental Free Trade Agreement (AfCFTA) aims to diversify exports and accelerate trade growth opportunities across the continent.
International interest in African IFCs has grown over the years as a result of these agreements, but it is up to us Africans to take the lead in making it more attractive to investors, with a focus on intra-African and international investment.
Earlier this year, the World Alliance of International Financial Centers (WAIFC) announced its establishment africa roundtableis a joint collaboration between four African IFCs (Nigeria, Morocco, Rwanda and Mauritius) that aims to improve the competitiveness of IFCs across the continent, conduct research, share best practices and, most importantly, advocate among member countries. Regulatory harmonization between the
But that’s not to say that some African IFCs aren’t already starting to make a name for themselves globally.
Mauritius was recently named one of the best investment destinations in Africa Global Financial Centers Index Reportsecond only to Casablanca, both of which continue to climb in the global rankings. The 2024 report, released in September, examined 133 financial centers around the world and examined the financial confidence and overall competitiveness of the International Financial Centers (IFCs). While the average rating for all financial centers fell by 0.42%, Mauritius rose four spots to 60th, becoming the second most competitive financial center in Africa and fifth in the Middle East and Africa region.
It is the culmination of decades of strategic planning by the island nation’s government to re-establish Mauritius as Africa’s investment gateway.
Mauritius as IFC’s long-term plan
In recent years, Mauritius has announced its numerous economic and social ambitions, ranging from becoming one of the most attractive countries on the African continent retirement center, Medical hot spots Indian Ocean and, of course, leading IFCs.
However, while the efforts to date have been recognized, the work is far from over. The Mauritius Economic Development Board said a core focus in the coming years will be promoting innovation in financial services and establishing a strong legal framework for investment in the country.
To this end, priority will be given to compliance with applicable international standards in the areas of anti-money laundering and combating the financing of terrorism, and in cooperation with the Organization for Economic Co-operation and Development, the Financial Action Task Force, and the European Union.
Central to this development, however, will be similar international agreements (such as the Africa Roundtable) to enable cross-border investment, collaboration and innovation sharing, thereby leveraging Mauritius’ strategic location to attract investors from the African continent and beyond.
Improving investment access in Mauritius
Through the establishment of 46 double taxation agreements with major global markets, Mauritius has achieved a reduction in overall investment costs, making Mauritius a more competitive and stable cross-border business environment for those seeking efficient tax structures, legal certainty and a stable cross-border business environment. Strategic investment destination. ——Border investment.
Likewise, Mauritius becoming part of the African Continental Free Trade Area means the elimination of 90% of tariffs on goods traded within the agreement area, encouraging foreign companies to set up factories and assembly plants on the island to achieve greater freedom of trade in Africa – allowing goods Exports to the African continent are duty-free.
But that’s not to say the country only targets larger organizations. In fact, a key aspect of the country’s investment strategy is attracting start-ups and innovators – especially in the fintech sector.
Innovation hubs such as the Mauritius Research and Innovation Council and the Fintech Innovation Lab provide incubation, mentoring and funding for start-ups. The centers are designed to accelerate business growth in the fintech and digital services industries, providing opportunities for investors and collaborative networks. However, more can be done and we are already seeing other countries joining the WAIFC Africa Roundtable looks for new ways to attract investment and innovation.
Take Nigeria as an example, Establish a digital technology exchange project center in the United States, and international tax treaties continue Development in Morocco.
Through initiatives like the Roundtable, we can continue to learn from each other’s successes and advance prosperity in our respective countries and the world.
