Mauritius invites Indian companies to explore business opportunities

Visiting Mauritius prime minister Pravind Kumar Jugnauth Friday invited India Inc to participate in his nation's ambitious bid to reduce its dependence on tourism by embarking on an industrialisation drive. He offered investment opportunities in airport, roads and other transportation and communication projects, among others to Indian businesses.

The tiny Indian Ocean island nation is known for its pristine beaches, lagoons and reefs and its economy heavily dependent on tourism. "There are investment opportunities in our airport which are operating at near-full capacity. The airport needs investment to expand capacity, including a second terminal. We also need more investments into our road network and other transportation and communication projects," Jugnauth after a bell-ringing ceremony at the BSE.

While there are vast opportunities for foreign investment and joint ventures, investors will find that Mauritius has a very friendly, efficient and conducive investment environment, he said. Presenting Mauritius as one of the most liberalised economies in the world, he said it's a quasi-duty-free country with low barriers to imports and practically no barriers to exports and offers free repatriation of profit as there is no capital control. He also said there is a strong legal framework to protect business investments.

Corporate and personal income taxes are at a flat 15 per cent, and so is the rate of value-added tax, he said. Unveiling a vision document of the proposed Afrinex Stock Exchange, Jugnauth said, "Afrinex will contribute to further develop and internationalise the capital market and significantly enhance the role of his country as a regional and financial hub. This major investment is also in line with the role that Indian investors have always been playing in Mauritius." Last March, the premier exchange BSE had signed an agreement with Mauritius to set up the Afrinex, which will be a multi-asset exchange.

Earlier in the day, addressing a business summit, Jugnauth also expressed his confidence in signing the proposed comprehensive economic cooperation and partnership agreement (CECPA) with New Delhi at the earliest. The pact is expected to further facilitate and open up new avenues for trade and cross-border investments between the two nations. "There is a very strong will of both sides and without divulging any confidential information, I can safely say that we are on the same wavelength. The CECPA will be concluded pretty shortly," Jugnauth told the businessmen.

"Obviously there are a few items which need further negotiations. There are as usual sensitive goods, particularly for trading goods and even on that I am pretty confident that we will come to a conclusion soon," he said. Addressing the gathering, commerce and industry minister Suresh Prabhu asked the domestic business chambers to take a high-level delegation to the island nation to find out business opportunities there.