Africa is increasingly becoming a preferred investment destination. Over the last few years, in spite of the development challenges, many African countries have embarked on a process of transformation, experiencing unprecedented rates of growth, a rise in trade and investment, and structural transformation.
According to the IMF, for developing countries across Africa, foreign direct investment is a critical driver of future growth and development, thereby presenting an opportunity for the Mauritius IFC.
The Mauritius IFC’s Africa strategy is underpinned by this appetite for foreign investments, by providing access to finance and expertise to and from Africa. The strategy will not only contribute to the transformation of Africa into a stable and competitive continent, but also create substantial spill-overs to the Mauritian economy across various segments, for instance banking, global business, insurance, capital markets, and support services such as legal and accounting services.
Mauritius is also well poised to be the risk-mitigating platform that would provide the security and peace of mind to investors with 23 Investment Promotion and Protection Agreements (IPPAs) signed with African states, which include clauses for protection against expropriation, compensation for losses and free repatriation of capital profits.
Also, Mauritius is a member of the Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group, since the 28th December 1990. Hence, companies incorporated in Mauritius are eligible for MIGA guarantees which protect investors against the risks of transfer restrictions, expropriation, war and civil disturbances, breach of contract and failure to honour sovereign financial obligations.