June 2020 - Staying Connected

AFSIC and African Banker Webinar

The Outlook for Africa’s financial markets.

Africa, like all regions globally, will be significantly impacted by the unprecedented macro constraints presented by the Covid-19 pandemic, particularly coming so soon after the uncertainty and turbulence presented by Brexit and the US-China trade war amidst a slowing global growth environment.

AFSIC is delighted to have partnered with AFRICAN BANKER and some of our top SPONSORS to offer our clients and other valued stakeholders an informative macro and technical webinar that sets out the likely scenarios for African financial markets and macro insights into the continent’s wider economy as governments in Africa and around the world work out their exit strategy from lockdown as the true impact becomes clearer. Further details are found below in the webinar infobox.

African Banker Webinar

To register for the first AFSIC and African Banker webinar please click here.

Moody's Investor's Service

The G-20 debt suspension initiative is unlikely to ease the significant credit challenges that the coronavirus pandemic has amplified in some frontier market sovereigns, particularly in Africa, Moody’s Investors Service says in a research report. Read more

Country Focus: Mauritius

Mauritius is an active member of the Commonwealth and a founding member of the African Union. Mauritius offers a growing number of double taxation agreements and investment promotion and protection agreements with mainland counterparts.  Mauritius is regarded as a competitive, efficient and well-regulated financial centre for investment into the emerging markets of mainland Africa.

Ocorian

How is Mauritius able to help the UK strengthen trade and investment ties with Africa?

As the UK seeks to boost economic links with Africa after Brexit, Directors John Félicité and Raju Jaddoo analyse the role of Mauritius, alongside other established financial centres such as Jersey and London, in facilitating investments into Africa.

Positioned for cross-border finance and investment

Mauritius is an active member of the Commonwealth and is a founding member of the African Union. Furthermore, it’s a signatory to the South African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA). It also boasts a growing number of double taxation avoidance agreements and investment promotion and protection agreements with mainland counterparts. Importantly, despite being a distance of over 2,500 kilometres from the east coast of the continent, Mauritius is regarded as a competitive, efficient and well-regulated financial centre for investment into the emerging markets of mainland Africa (and beyond).

As of June 2018, the total value of investments structured through Mauritius into Africa stood at USD 36.4 billion[1], with South Africa, Nigeria, Democratic Republic of Congo, Mozambique and Kenya among the continent’s top five recipients. These figures include flows invested through private equity and impact funds with the participation of several development finance institutions as investors.

Mauritius is not used exclusively for inbound investments to Africa however. Many African investors view Mauritius alongside Jersey, Dubai and London as one of their financial centres of choice when it comes to structuring their cross-border investments on the continent or when investing overseas.

A strong case as an Africa-focused financial centre

In addition to a long history of working with the continent, Mauritius offers stability, security and reliability, firmly grounded in good governance and rule of law within an open and liberal economy. Additionally, the country’s bilingual labour force provides an efficient, competitive and comprehensive service for the administration of a full range of investment vehicles and funds.

As a reputable financial centre, Mauritius is served by a well-developed banking system, underpinned by the absence of exchange control and the unrestricted movement of capital. Several international banks have a presence locally, whilst many local banks operate subsidiaries on mainland Africa too.

Africa’s appeal here to stay

The AfCFTA could herald new impetus to Africa’s economic growth. With a target market exceeding 1.5 billion people and an estimated USD 4 trillion in investment and consumer spending, it will provide a platform for intra-African as well as cross-border trade and investment. Furthermore, it is hoped that many countries will intensify their efforts as traditional or new investors on the continent. As an investment facilitator, Mauritius can play an important part in helping the UK achieve its ambition of being the largest G7 investor in Africa by 2022.

How we can help?

Located in key international financial centres such as Jersey, Mauritius and UAE, we help companies and funds structure and administer their investments across Africa. We have also assisted African investors to expand their business across the continent and venture into new markets overseas, bringing our expertise to bear on your investment decisions by mitigating risks and helping you maximise your investment value.

To discuss how we could help your business needs, contact our team here.

[1] Source: Financial Services Commission of Mauritius

Intrasia

Intrasia Management (Mauritius) Limited (“IMML”) is a fully licensed company, regulated by the Financial Services Commission of Mauritius. IMML provides a ‘one-stop shop’ service which includes the establishment of companies, Global Business Licenses, Trusts and Funds; the management and structuring of corporates to access Mauritius’ extensive range of Double Tax Avoidance Agreements and Investment Promotion and Protection Agreements.

IMML works alongside associated companies, Intrasia Corporate Services Ltd, in Mauritius and Singapore (“ICS”) to provide an extensive range of services to its clients which can be accessed through their website www.intrasiamanagement.com and www.intrasiacorporate.com ICS supports IMML activities by providing legal, accounting, secretarial and staffing assistance to clients as well as consulting and advisory work for clients in the financial and corporate spheres.

These activities are an essential part of “Mauritius on the Go” and make available internationally the benefits of structuring business activities through Mauritius, particularly as world recovery from the COVID19 pandemic will see nations increasing taxation and reducing corporate benefits to recapture the costs of recovery.

Mauritius is ranked 1st in the Mo Ibrahim Index of African Governance for being the most Compliant Jurisdiction in Africa as well as ranking 1st in Africa and 13th globally in the World Banks’ Ease of Doing Business 2020 Report. These rankings support Mauritius as the most business-orientated and democratically stable nation in the African continent as well as a prominent player in world business. Mauritius is recognised as a premier holiday destination with an acclaimed island living environment, however, this shades its importance as an international financial centre with best international practices and a sound regulated banking and financial services sector.

Mauritius provides the ideal route for investment into and out-of Africa with 46 Double Taxation Avoidance Agreements and 34 Investment Promotion and Protection Agreements which fundamentally de-risks investment flow into African jurisdictions. Through treaty organisations Mauritius has beneficial or duty free access to African markets which make it an ideal base for higher tech manufacturing as well as trade facilitation. There is no exchange control and free repatriation of profits and capital as well as very attractive taxation rates of upto 15% for corporates with many exclusions to encourage domestic business activities, no Withholding Tax and no Capital Gains Tax.

IMML is a part of this attractive business platform with both office and work-at-home infrastructure in place to deliver health, productivity and service enhancements. Support from ICS provides the benefits from either Mauritius or Singapore for establishing business structures in either jurisdiction and with related financial institutions such as AfrAsia Bank, provides strong backing to cost effective corporate development.  Whether for African or other investment locations, Intrasia Management (Mauritius) Limited provides essential assistance as a business facilitator.

https://youtu.be/XhKG2FrPJY0

AfrAsia Bank

Acclaimed as an African success story, Mauritius is a mighty little rock nestled in the India Ocean that has never ceased to add successes to its roll of honour over decades. We are in a fast-moving world and no one, irrespective of size or stature, is shielded from the unforeseen. Back in 2008, Mauritius faced one of the biggest global financial crises. Slightly more than a decade later, the Island navigated the sanitary wave with a perseverance and proactivity that was commended by many and which resulted in the country being the second African nation securing a COVID-19 free status. Read more

African Investments Dashboard

Do you want to invest in Africa? Do you want to raise capital for a company or project in Africa? You are in the right place! The African Investments Dashboard allows you to start making great business and investment connections. Companies seeking capital can list approved investment opportunities to the dashboard for free and access to the database of African investment opportunities is complimentary for authorised institutional investors. Find out more HERE.

Africa Eats

Keeping the Food Supply Chain flowing 

The coronavirus pandemic brings more than a healthcare crisis to Africa, it brings disruptions to the food supply chain that will likely cause widespread hunger and starvation. Africa Eats is a holding company invested in a network of diverse African food and agriculture companies across Sub Saharan Africa which support hundreds of thousands of smallholder farmers who together can keep a significant amount of the food supply running. Africa Eats is raising debt and equity capital to support and grow this essential network. Full details on the African Investments Dashboard (Opportunity Number AIDB – 006762 )

Thazin Group

Gori Hills Gold Opportunity

The COVID-19 crisis has again shown the importance of gold as a safe asset and Mauritius-registered Thazin Group is well positioned to reap the benefits of current gold price strength as it prepares to commence small scale gold mining in Sierra Leone and investigates larger gold exploration projects in Sierra Leone and South Sudan. Thazin Group is raising up to US$10m in equity to kickstart operations. View gallery here. Full details on the African Investments Dashboard (Opportunity Number AIDB – 007206)

Point Capital

A new Hospital in Kenya Re-defining Healthcare

A greenfields Luxury International Hospital in Kenya with a 90-bed capacity is approaching commercial launch. Point Capital is raising $1.3m in Tier 1 capital for Medlux International Hospital to expand the hospital’s capability to serve more clients by funding acquisition of medical equipment. Full Details on the African Investments Dashboard (Opportunity Number AIDB – 007288)