Mauritius as a Gateway to Africa: Legal and Structural Considerations

Mauritius has, over the past three decades, developed a legal and regulatory architecture designed to position it as the principal gateway for investment into Africa. This is not a matter of marketing rhetoric. The jurisdiction's treaty network, its corporate legislation, and its fund regulatory framework together provide a coherent and workable structure for cross-border investment.

The Treaty Network

Mauritius has concluded Double Taxation Avoidance Agreements with a number of key African economies, including South Africa, Kenya, Rwanda, Senegal, Mozambique, Zimbabwe, and Madagascar. These agreements generally provide for reduced withholding tax rates on dividends, interest, and royalties, and for the elimination of double taxation through the credit method.

The South Africa-Mauritius Treaty, signed in 1997 and amended in 2014, merits particular attention. Under the amended treaty, dividends paid to a Mauritian resident are subject to a maximum withholding tax of 15 per cent, with a 50 per cent exemption where the beneficial owner holds at least 10 per cent of the equity. Interest income is exempt from withholding tax in South Africa when paid to a Mauritian treaty resident.

Corporate Structures

The Companies Act 2001 provides for several vehicle types suitable for Africa-focused investment:

• A Global Business Corporation, licensed under Part II of the Financial Services Act 2007, suitable for holding structures and treasury functions
• A company limited by shares under the Companies Act 2001, suitable for joint ventures and operational entities
• A Segregated Portfolio Company under the Securities Act 2005, suitable for collective investment schemes with ring-fenced sub-portfolios

Section 18 of the Companies Act 2001 permits incorporation with a single shareholder. There is no residency requirement.

Investment Funds

The Securities Act 2005 establishes the regulatory framework for collective investment schemes. Mauritius offers an Authorised Collective Investment Scheme, a Global Business Administration category, and a Professional Collective Investment Scheme. The FSC's guidance on fund management imposes capital adequacy, risk management, and compliance requirements proportionate to the size and complexity of the fund.

Practical Advantages

Mauritius operates on UTC plus 4, which provides overlap with business hours in East Africa, the Middle East, and Europe. English and French are official languages, facilitating engagement across the continent. The political and economic stability of the jurisdiction, combined with the rule of law inherited from both the French civil code and English common law traditions, provides a familiar framework for international investors.

This article is for general information purposes only and does not constitute legal advice.