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EIU Democracy Index 2017: Mauritius ranked 16th worldwide and 1st in Africa
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According to the Democracy Index released by the Economist Intelligence Unit (EIU) on 31st January 2018, Mauritius ranks 16th out of 167 countries worldwide, and 1st in Africa.
Thus, Mauritius gains two ranks this year compared to the previous year, when the country ranked 18th worldwide, 1st in Africa. |
| The SelfKey Foundation obtains a Regulatory Sandbox License in Mauritius
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| Selfkey , a blockchain-based digital identity firm which allows exchange of information, transactions, and crypto currency portfolios to have their database of verified documents and to keep sensitive information secure, has been granted a Regulatory Sandbox Licence by the Board of Investment (now under the Economic Development) in Mauritius.
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| FDI to Mauritius increase to MUR 12.3 billion (January-September 2017) |
| The latest statistical release from the Bank of Mauritius reveals a surge in inward Foreign Direct Investment (FDI) to Mauritius for the first three quarters of 2017, with FDI inflows reaching a total of MUR 12.3 billion. This amount represents an increase of 16% compared to MUR 10.6 billion registered for the previous corresponding period.
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| Mauritius-China Free Trade Agreement: Signature of MoU to launch negotiations
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| In view to launch negotiations for a Mauritius-China Free Trade Agreement, the Ministry of Foreign Affairs, Regional Integration and International Trade of Mauritius and the Ministry Commerce of the People’s Republic of China signed a Memorandum of Understanding (MoU) on 12th December 2017.
The signature took place during the 11th World Trade Organisation Ministerial Conference in Buenos Aires, Argentina. The Free Trade Agreement (FTA) aims to put in place the necessary conditions to increase bilateral trade and investment levels, as both sides plan to consolidate and expand the scope of their bilateral economic cooperation and to eliminate trade barriers.
The Mauritius-China FTA will be comprehensive and will cover trade in goods, trade in services, investment and economic cooperation.
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Economic Development Board officially operational
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| Further to the proclamation of the Economic Development Board Act 2017, the Economic Development Board (EDB) was officially set up on Monday 15th January 2018.
The former institutions known as the Board of Investment, Enterprise Mauritius and the Financial Services Promotion Agency have merged into this new organisation.
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| Financial Services Industry Highlights
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| According to the latest Performance Highlights released by the Financial Services Commission (FSC), as at 30th November 2017, there has been an increase in the number of Global Business Companies (GBCs) on register, with a total of 21,435 compared to 21,203 for the same period last year. Among new applications received, the greater tendency has been for GBC1s compared to GBC2s.
In terms of the value of Portfolio Investment held by GBC1s, the FSC noted an increase from USD 106,503 million in December 2016 to USD 118,569 million in June 2017, representing a growth of 11%. This is mainly attributed to investment made into India, which totaled USD 92,612 millions in June 2017 compared to USD 81,544 million in December 2016 and which represented an increase of 14%.
The FSC’s Performance Highlights can be accessed here.
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| SBM Holdings: First foreign bank to be granted a Wholly Owned Subsidiary Licence by the RBI |
| SBM Holdings, one of the main local banks in Mauritius, has successfully applied for and been granted a Wholly Owned Subsidiary Licence, for the operation of a subsidiary in India, by the Reserve Bank of India (RBI). It was previously operating as a branch of SBM Bank (Mauritius) Ltd in India for the past 20 years.
SBM Holdings becomes the first foreign bank to be granted such a licence by the RBI. Indeed, until recently, the RBI allowed foreign banks to open branches only in India. However in view of issues that may arise due to the dependency of these local branches on their respective head offices, the RBI has changed its policy to now allow foreign banks to set up wholly owned subsidiaries, legally independent from their head office, in India. In this new context, the Indian-based entity can have its own capital and proceed to the nomination of members of the local board of directors. This allows the RBI to exercise more efficient control on the activities of the local entity, which it would not have able to so long as the local entity remained dependent on a foreign-based parent company.
For SBM Holding, the acquisition of this licence comes in line with the bank’s strategy to expand its activities in India. With this licence, SBM Holdings has positioned its banking arm, as a financial institution available for investors leveraging on the Asia-Africa and India-Africa corridors.
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| Regulatory committee for Fintech and Innovation launched at the Financial Services Commission (FSC) headquarters |
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The Mauritius International Financial Center has gained a solid reputation as a well-regulated and transparent jurisdiction, and in a continuous effort to maintain the Mauritius International Financial Center as a leading jurisdiction worldwide, the country is now looking into the development of innovative financial services and of the Fintech industry.
To assist in the elaboration of a regulatory framework for the development of the Fintech industry in Mauritius, a Regulatory Committee on Fintech and Innovation-driven Financial Services will be launched on Friday 9th February 2018, at the FSC.
The purpose of the committee will be, among others, to assess the country’s current regulatory framework for Fintech and innovative financial services and put forward new regulations. In addition, it will also be mandated to identify priority areas for the regulation of Fintech activities, and to determine measures required to be put in place in view to sustain the development of the country’s Financial Services sector, including new regulations for different activity segments.
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| | DISCLAIMER The information in this e-newsletter was prepared by Intercontinental Trust Limited to provide potential clients with a broad overview of the opportunities available in Mauritius. While all reasonable care has been taken in the preparation of this e-newsletter, Intercontinental Trust Limited accepts no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, sustained by any person that relies on it. Readers are advised to consult with appropriate, qualified professional advisors before taking action. Intercontinental Trust Limited will be pleased to discuss any specific issues.
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