Many multinational firms continue flocking Mauritius and this has seen Mauritian banks recording growth and stability. Whether the firms are in it for genuine investment reasons, or for evading tax, it has seen banks in Mauritius enjoying.
Why Mauritius? One may ask. The political stability that Mauritius offers is very appealing when compared with other African countries where the political climate is very hostile and unfavourable. Mauritius’ economy has been experiencing considerable growth more than some of those on the mainland. Mauritius benefits from favourable business policies, which significantly enhance the appeal of the economy from a trade and investment perspective.
Other African markets are very volatile, but Mauritius’ is very stable and thus lures people all over. Already considered by the World Bank as the easiest place to do business in Africa, Mauritius passed a law this month to promote cross-border trade and remove licensing bottlenecks, which may spur demand for credit and help soak up excess cash held by banks.
However Mauritius has become a well-know destination for offshore accounts. Mauritius is known for its secrecy, negligible corporate tax rates, and for being a favoured conduit for wealthy individuals and multinationals wishing to avoid tax on African and Asian profits.The country offers double taxation treaties with dozens of countries including several in Africa. There are no exchange controls thus allowing free repatriation of profits and capital with no withholding tax. There are no capital gains, death, wealth or gift taxes.
It is a tax haven. It is also a place for major investment. Whatever way it is, the banks are enjoying robust growth.