Ken Poonoosamy : “Mauritius has a strong value proposition for wealth management for China”

The Economic Development Board is best positioned to provide the necessary resources to facilitate Chinese investment in Africa through Mauritius.

Indeed, Mauritius is rightly perceived at the international level as an attractive investment and business centre, a competitive export platform and a sound and secure international financial centre. In its endeavour to be a gateway for investments to and from Africa, Mauritius is well poised to take advantage of such initiatives as the Continental Free Trade Agreement and the Chinese One Belt One Road ambition, positioning itself as the go-to hub for businessmen and investors from China. Ken Poonoosamy, Deputy CEO of the EDB, also believes that Mauritius has the potential to serve China’s nearly 2 million millionaires in terms of fiduciary services like wealth and fund management.

“China is one of the leading investor countries into Africa. As one of the Top 5 sources of FDI into the African continent and with continued cross-border investments through Mauritius, China remains a key market for the Mauritius International Financial Centre (IFC). Enhanced collaboration through the One Belt One Road initiative (OBOR) will provide the Mauritius IFC with many opportunities that will come through an increase in trade and investment as well as in financial integration. Mauritius has already acquired a strong reputation among the Chinese investor community as a hub for cross-border investments and the role of EDB is committed to reinforce this bond between both countries to place Mauritius as a key role and as a gateway for international investments into China.”

He argues that Mauritius is a well-established economy for investors seeking a secure investment climate, a conducive business environment, political stability, transparent regulations, high value-addition and an efficient financial ecosystem offering a plethora of services. “As an innovation driven and knowledge-based economy, Mauritius is underpinned by a broad spectrum of sectors which offer a number of excellent business opportunities in numerous fields. In its quest to become a high-income economy, Mauritius is actively attracting foreign investors to explore its thriving business environment and its unique art de vivre. In turn, investors acknowledge the numerous advantages and opportunities to set up their businesses in Mauritius.

The appeal and economic track-record of Mauritius exudes a sense of trust, stability and confidence which is recognized by the international community. ”
Ken Poonoosamy further underlines that Mauritius is a well-regulated jurisdiction which complies with international standards. Chinese companies investing in Africa - financing the development of Special Economic Zones, infrastructure and mining projects - could use, for example, the Stock Exchange of Mauritius to raise capital for financing their projects from both local and international investors.  “In addition, Chinese companies willing to invest in Africa can also use the Mauritian IFC to structure their investments and for risk mitigation. The EDB, as the apex organisation mandated to promote Mauritius as an attractive investment and business centre provides a strong institutional support for investors willing to tap into these opportunities. ”

Exploring field with China

China has become Africa’s largest trading partner since 2009, says Ken Poonoosamy. “Mauritius could strengthen its position as a gateway for Chinese enterprises trading and investing in Africa. Mauritius should develop its platform to facilitate trade and further distinguish itself as an important transportation and logistics and petroleum hub. The establishment of the Continental Free Trade Agreement (CFTA) is a key African initiative to create a single continental market for goods and services, with free movement of business persons and investments, and to improve long-standing integration that will eventually boost prospects for intra-African trade and investment. China can thus tap into this opportunity and use Mauritius as the platform for having greater market penetration into Africa. ”

Mauritius has a liberal trading policy coupled with state-of-the-art logistics infrastructure and reliable support services which is fully integrated into the international trade eco-system.  Mauritius advocates regional integration and is an active member of the SADC & COMESA regional economic blocs, he adds. “Chinese investors can set up their manufacturing base in Mauritius and export to SADC & COMESA to benefit from preferential market access. The COMESA-SADC-EAC Tripartite and establishment of the Continental Free Trade Agreement will further bolster trade and this will enable Chinese investors to tap into new markets on the continent and hence develop the China-Mauritius-Africa trade corridor. ”

Different opportunities for Mauritius in China

Through its panoply of products and services, Mauritius has a strong value proposition for wealth management for Chinese HNWIs, he underscores. “Numerous avenues are present for Mauritius to access the Chinese market, namely for the export of goods, services, as well as the tourism sector. The Mauritius-based LUX* Resorts & Hotels already operates leading hotels in China with a service offering that can cater to the needs of the increasing number of expatriates currently working or running businesses there.

There are countless other opportunities which Mauritian businesses and investors can explore. The EDB regularly conducts roadshows, highly targeted one-to-one meetings and visibility campaigns in key cites in China, where we not only showcase the prospects for Chinese businesses wishing to foray into Africa, but also partnership opportunities for the Mauritian business community in different fields. ”