ANNUAL
REPORT
2014
PARTNERING FOR PROGRESS & PROSPERITY
10th Floor, One Cathedral Square Building,
16, Jules Koenig Street,
Port Louis,
Mauritius
Tel: +230 203 3800
Fax: +230 210 8560
contact@investmauritius.com
www.investmauritius.com
Contents
ANNUAL REPORT 2014
Partnering for Progress & Prosperity
01
Mr. Gérard Sanspeur
CHAIRMAN
02
Mr. Ken Poonoosamy
2 MANAGING DIRECTOR
03
OPERATIONAL
4 REVIEW
6
3.1. Overall Performance ................................8
04
05
3.2. Sectoral Review & Key Projects ..............14
3.3. Marketing & Promotional Initiatives ..... ..26
3.4. Reinforced Africa Strategy .....................36
3.5. Doing Business .......................................41
CORPORATE
FINANCIAL
GOVERNANCE REPORT 44 STATEMENT
50
1
Chairman’s
Message
The Board of Investment is embarking on a process of
transformation which will make it a fourth generation IPA
whose promotional thrust is characterized by economic
development, environmental sustainability, social
development and good governance.
Consequently, assessing the performance of an
investment promotion agency solely on the basis of
foreign direct investment inflows is likely to be an
impairment to its efficiency and its raison d’être.
Surely, one of the primary objectives of an IPA is
investment marketing. However, if the sole performance
indicator is a cold count of FDI inflows without taking
into consideration the impact of foreign investments on
the structure of the national economy, on job creation,
on inclusive social progress, on “social capital” and the
safeguard of the environment, the strategy for investment
promotion calls for a serious review.
Can one imagine for just a minute a wild proliferation of gated dormitory compounds with IRS and RES projects across
Mauritius?
BOI’s turnover is not exactly akin to that of a corporate. The institution’s performance must have a direct, lasting and
positive incidence on the economic structure. It is assessed by several lead and lagging indicators, namely capacity
building in terms of developing and attracting new talents, innovation regarding new sectors of business, employment in
terms of jobs with higher pay packets, social advancement through the regression of poverty and an overall enhancement
of the quality of life. These are tangible benefits that place BOI’s role in its right context and give it a meaningful perspective.
A fourth generation IPA banks on the involvement of a multiplicity of professionals working with a new mindset that
places man and his environment at the core of economic progress and development. BOI is a full-fledged partner with all
stakeholders whose mission is to consider the type of legacy that will give future generations a competitive edge.
Therefore, a shift in the promotion mode has become imperative. Management and staff alike should not use only the
magnifying glass of FDI in the discharge of their responsibilities, since a relatively small investment accompanied by
expertise and vision can bring about sustainable development across the board.
BOI has the stressful responsibility to evaluate inputs and move beyond facilitation to targeting sustainable FDI that
contributes to development in terms of quality and not sheer volume. BOI will be assessing quality without neglecting
quantity, for in the long term the balance must be in favour of national convenience and sustainable progress.
2
Our agency has acquired experience to differentiate what is truly profitable and what significantly contributes to investment
promotion and business facilitation. If we want to be a game changer in the competitive development of Mauritius as a
hub, new research must be undertaken and new approaches adopted to improve the ease of doing business.
I do not see BOI in any other role than that of spearheading new progress. Our priority is to compellingly communicate
the business advantages of our offering, leverage available technology to consolidate and advance existing pillars such
as financial services, manufacturing, hospitality, seaport and airport logistics, transshipment and tourism while initiating
projects in smart sectors like ICT-BPO services, research and innovation, bio-medical, permaculture and engineering.
I am confident that our staff will therefore forget the status quo, rise to the occasion and build knowledge so as to be in a
position to take up new challenges that will move our country to its next level of development. Only then shall we be able
to say “Mission accomplished”.
Let me conclude with this quote from William Pollard, “Without change there is no innovation, creativity, or incentive for
improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.”
Gérard Sanspeur
Chairman
3
Managing Director’s
Message
Dear Investors,
In 2014 the global economy remained very volatile across our major
markets, both traditional and emerging. International events and crises
did not spare our heavily globalized economy. Fluctuations in major
currencies, elections and new Government regimes coming into power,
the introduction of special incentives to attract FDI, a call for more
transparency in cross-border investments, the tightening of rules in China
and Greece’s bankruptcy have all had their respective impact, directly or
indirectly, on Mauritius. Today, there is certainly no lack of competition
among countries, whether developed, developing or even LDCs, for
foreign direct investment.
Against these challenges, the Board of Investment has been able to assist
a number of foreign companies to successfully set up in Mauritius across
various sectors thus generating a number of jobs, while accompanying
many Mauritian companies to further extend their footprint across
mainland Africa during the year. The strategies adopted at the start of
2014 comprised a highly targeted investment promotion approach, an
enhanced visibility in our important markets as well as the improvement
of our business environment.
Attracting FDI
We have seen the materialization of major projects across a range of sectors. We pursued our market-focused approach
in attracting overseas companies and investors in priority sectors and industries where Mauritius has a competitive edge.
Industry-focused conferences including the BioAfrica 2014, MIKIF 2014 and Private Equity Mauritius 2014 were equally
organized in view of supporting our promotional strategies.
As a result, our traditional sectors comprising tourism, real estate, freeport and logistics, manufacturing and the agro
industry have all experienced growth with the implementation of new projects. In parallel, our focus has been on attracting
global companies to set up in emerging and new economic sectors, including ICT and BPO, financial services, seafood
and aquaculture, medical research and biotech and other innovation-driven business segments. These projects have
materialized through investments estimated at MUR 10 billion with the creation of some 2,500 new jobs.
Our traditional markets primarily Europe and South Africa remained our key sources of foreign investments. The market
diversification strategy implemented during the last few years has also yielded positive results. Put together, Asia and
Africa, excluding the Republic of South Africa, accounted for around 19.5% of our total FDI inflows in 2014.
Africa Strategy & Outward Investment
Our strategy also involved accompanying Mauritian companies with the objective of extending their operations and
economic space across Africa. Consequently, through its Africa Centre of Excellence, BOI has been very active in
mainland Africa promoting business and investment possibilities through the organization of promotional events in Ghana,
Gabon, Madagascar and South Africa. We equally organized the first edition of Mauritius Africa Partnership Conference
(MAPC) which saw the participation of eminent speakers including primarily several Ministers from Africa and Asia. MAPC
has helped to create a platform for interaction among the IPAs that attended the event through the sharing of information
about projects in the respective countries.
At the same time, Mauritius has been extensively promoted through a number of initiatives as a leading financial centre
and global services delivery platform of choice midway between Asia and Africa. The increase in the registration of
Africa-centric global business companies in Mauritius is a clear testimony to the increased efforts that have been deployed
over the years in positioning Mauritius as an efficient business centre for Africa.
4
Enhancing links with partners
With the ongoing support and collaborative efforts of main stakeholders and associations, both locally and overseas,
including our embassies, foreign consulates, international chambers of commerce, industry associations and BOI honorary
representatives, we continued to work hard to showcase the potential of Mauritius as a leading investment destination and
financial centre of substance. In view of enhancing our network with sister investment promotion agencies, we signed 8
new MOUs with IPAs of Hong Kong, Russia, Cameroon, Burundi, Ethiopia, Burkina Faso, Tunisia and the Marshall Islands
respectively, thus bringing the total MOUs to 34.
Development of new economic pillars
The implementation of projects identified under each of the seven priority areas of the Ocean Economy Roadmap has
been a key focus for BOI in 2014. These priority areas include exploration and exploitation of our seabed and subsoil,
fisheries and aquaculture activities, deep ocean water applications, marine services, seaport-related activities, marine
renewable energies and ocean knowledge. Moreover, BOI equally pursued its strategy for enhancing the development of
the creative industry through the marketing of the Film Rebate Scheme in 2014.
PR Campaign
Developing and nurturing the image of Mauritius as a clean investment destination and financial centre have been one
of our key aims. In this context, BOI recruited the services of Mercury Public Affairs LLC in the USA, and renewed the
contract of Ogilvy Public Relations in India. Newgate was also appointed to develop a clear communication and messaging
strategy for the Mauritius Financial Centre.
Doing Business Environment
BOI’s internal efficiency has been enhanced through the implementation of an online system for the registration and
incorporation of new companies. The process can be effected online and the incorporation certificate issued within 2
hours. Besides, BOI has worked closely with other relevant departments, namely the Registrar General’s department to
expedite transactions relating to online services pertaining to eSubmission, eTaxation, ePayment, eDelivery for movable
and immovable property as well as with local authorities for the timely issuance of Building and Land use Permits.
By virtue of its geographical position Mauritius is at the doorstep of one of the most promising continents with a largely
unexploited market base. With the continued support of stakeholders across various segments, we are confident that BOI
will continue to play a key role in driving investment and job creation.
Ken Poonoosamy
Managing Director
5
OPERATIONAL
REVIEW
3. 6
7
3.1
Overall Performance
A) Investment Landscape
After a slowdown in the flow of Foreign Direct Investment in 2013, inflows showed signs of growth with a rebound of 2.7% in 2014 rising
to MUR 14.151 billion (Figure 1). Foreign Direct Investment for the 4th quarter only amounted to MUR 4.052 billion.
The surge of FDI is attributed mainly to the dominant services sector and a 70% increase of FDI inflows from Europe compared to 2013.
Foreign Direct Investment
25,000
20,373
MUR MILLIONS
20,000
15,000
14,151
13,766
12,894
10,000
5,000
0
2011
2012
Figure 1: Foreign Direct Investment
2013
2014
Source: Bank of Mauritius
FDI figures for 2011, 2012 and 2013 include reinvested earnings and shareholders’ loans and are not comparable to 2014 figures which
will be revised once the Foreign Assets and Liabilities Survey has been conducted by BoM.
Foreign Direct Investment by sector
The traditional sectors, namely accommodation and food services activities, real estate activities and financial and insurance activities
attracted 91% of the total investment (Figure 2).
ICT 1%
Healthcare
Construction
4%
Others 1%
3%
Acc. & Food services
34%
Real Estate 44%
Financial services
13%
Figure 2: Foreign Direct Investment by sector
8
Source: Bank of Mauritius
Real Estate activities attracted the major share of investment (MUR 6.178 billion) accounting for 44% of FDI while the accommodation
and food services activities recorded a substantial increase with investment to the tune of MUR 4.893 billion and the financial sector
contributing 13% of total FDI (MUR 1.815 billion).
The healthcare sector has recorded an inflow of MUR 532 million in 2014. Investment in the ICT sector is on the uptrend with FDI
amounting to MUR 141 million while the manufacturing sector and agriculture and fishing recorded inflows of MUR 76 million and MUR
19 million, respectively, showing signs of decline. FDI in the construction sector almost halved (MUR 376 million) in 2014 compared to
2013 and is on constant decline since 2012.
Foreign Direct Investment by Geographical Origin
Europe remains the main source of FDI contributing to 58% of total FDI. Inflows of MUR 2.440 billion were recorded from Asia &
Oceania (17%) positioning the region as the second largest contributor followed by North America (15%) with an almost ten-fold increase
compared to 2013 with nearly 80% of that coming from the United States (Figure 3). A 40% decrease in FDI flows from Africa was noted
in 2014.
58%
17%
10%
15%
Europe
Asia
Africa
North America
Figure 3: Foreign Direct Investment by Geographical origin
Source: Bank of Mauritius
The flux of investment from Europe and North America is on the rise as compared to 2013 and substantiates the marked increase in FDI
in 2014.
Foreign Direct Investment by country of origin
France was the leading investor in Mauritius (25%) in 2014. FDI from the United States is on the uptrend and has surged from MUR 219
million in 2013 to MUR 1.636 billion and currently accounts for 11.6% of total FDI (Figure 4). The flux of FDI from the Middle East, namely
from UAE has surged to MUR 621 million (27.3%) as compared to MUR 488 million in 2013. A similar trend is noted for FDI from the UK,
increasing from MUR 642 million in 2013 to MUR 892 million in 2014.
However, a marked decline in FDI has been noted from China (-78%) and South Africa (-41%) in 2014 compared to the previous year.
FDI by country of origin
MUR MILLIONS
India
China
UAE
Luxembourg
UK
South Africa
United States
France
0
500
1000
1500
2014
Figure 4: : FDI by country of origin
2000
2500
3000
3500
2013
Source: Bank of Mauritius
While FDI from France, United States, UAE, UK and Luxembourg is on the rise, significant decrease in FDI has been recorded from China,
India and South Africa in 2014. Some diversification has been noted with regard to our source of FDI with higher inflows from Middle East
and Asia.
9
Outward Investment
Outward investment in 2014 amounts to MUR 3.480 billion representing a 45% decrease from the previous year (Figure 5).
Outward Investment
7,000
MUR MILLIONS
6,329
6,101
6,000
5,549
5,000
4,000
3,480
3,000
2,000
1,000
0
2011
2012
Figure 5: Outward Investment
2013
2014
Source: Bank of Mauritius
Direct Investment Abroad by sector (%)
Local investors have invested in the ICT sector in 2014 with outflows amounting to MUR 1.165 billion representing a third of total
investment abroad.
Others
4%
ICT 33%
Outward investment by sector
2014 (%)
Healthcare 15%
Acc. & Food service 13%
Financial services 17%
Manufacturing 6%
Real estate 12%
Figure 6: Direct Investment Abroad by sector of activity
Source: Bank of Mauritius
Outward investment in the Financial Services Sector (MUR 579 million) accounts for 17% of total outflows. Investment in the healthcare
sector has surged to MUR 531 million (15.3%). A similar trend has been observed for the manufacturing sector (6.4%) and outward
investment in the agriculture, forestry and fishing sector has decreased from MUR 527 million in 2013 to MUR 46 million in 2014.
Investment outflows in the real estate activities has known a 50% decrease compared to the previous year and accounts for 12% of total
outward investment. The most significant decrease has been noted in the accommodation and food service activities from MUR 3.044
billion in 2013 to MUR 440 million in 2014.
10
Direct Investment Abroad by Geographical Region (%)
Outward investment to Europe in 2014 was to the tune of MUR 2.085 billion (60%) with France (MUR 669 million) being the prime
investment destination. Africa has been host to investment valued at MUR 950 million representing 27% of total outflows for the same
period.
60%
10%
27%
2%
Europe
Asia & Oceania
Africa
North &
Central America
Figure 7: Direct investment abroad by country of origin
Source: Bank of Mauritius
Outward investment to Asia & Oceania has decreased from MUR 798 million in 2013 to MUR 335 million in 2014. The United Arab Emirates
has attracted MUR 189 million of investment from Mauritius and is the highest recipient of outward direct investment in the Asia region.
The outflow of investment to North and Central America has declined from MUR 203 million in 2013 to MUR 76 million in 2014.
B) Occupation Permit
Opening up the economy
The Occupation Permit Scheme introduced in 2006, pursuant to the enactment of the Business Facilitation Act, opened up the country to
foreign investors and talents. The objective was to facilitate the process of issuing work/residence permits to foreign nationals wishing to
work in Mauritius making the country an attractive destination for the skilled and highly skilled migration elite specifically.
Since the introduction of the Occupation Permit Scheme in 2006, 16,029 Occupation Permits and 1,321 Residence Permits have been
delivered to foreign nationals. For the period January to December 2014, 2,604 permits were issued by the Occupation Permit Unit.
Almost 80% of applications received are in the professional category, whilst 9% are investors, 4 % are self-employed and 7 % are under
the retired non-citizen category. By the end of December 2014, there were a total of 4,585 holders of Occupation and Residence Permits.
The chart below provides an overview of the number of Occupation and Residence Permits issued as at December 2014.
Figure 1: Number of OP/RP issued
Figure 2: Active OP/RP as at December
602
429
2604
2170
2100
2171
2008
2009
2375
181
2019
2088
1543
284
2006*
2007
2010
2011
2012
2013
2014
3373
INVESTOR
PROFESSIONAL
SELF EMPLOYED
RETIRED NON-CITIZEN
Source: Board of Investment
11
It has been observed over the years that our traditional partner France (33%) followed by India (22%) remains an important source of
investment, talent and skills for our economy.
Nationalities
1600
1400
1200
33%
1000
800
200
0
FRENCH
SOUTH AFRICAN
INDIAN
Figure 3: Top 5 Nationalities as at December 2014
6%
9%
400
6%
22%
600
CHINESE
BRITISH
Source: Bank of Mauritius
The chart below provides percentage in terms of the number of Occupation Permits issued by sector of activity.
Sector of activity
20%
ICT & Media
Hospitality & Airline
Manufacturing
13%
Financial Services
6%
Professional Services
6%
Knowledge
5%
Trading
4%
Property Development
Freeport & Logistics
3%
Medical
1%
1%
Creative
1%
Seafood & Agriculture
Film Industry
0%
1%
Energy
11%
21%
Source: Board of Investment
The main sectors of activities are the ICT & media, hospitality and
airline industry and financial services.
• Out of the 244 Occupation Permits issued under the Investor
category, 21% are engaged in the ICT & media, 17% in trading,
and 14% in the financial services sector.
• 24% of the professionals registered are in the hospitality &
airline industry, 23% in the ICT and media sector and 15% in the
financial services sector.
• As for the self-employed, it is noted that most of them provide
professional services (48%), in ICT and media sector (19%).
12
A foreign national, holding an Occupation/ Residence Permit may
acquire an apartment in a building complex comprising ground
plus 2 floors for residential purposes. As of 31 December 2014,
22 authorizations for acquisition of apartments were granted to 5
investors, 7 professionals and 10 retired non-citizens.
Moreover, 162 Permanent Residence Permits (PRP) have been
issued to foreign nationals: 22 to Investors, 2 to Self Employed,
48 to Professionals and 90 to Retired Non-Citizens.
C) Forging new institutional relations and enhancing collaboration
As part of its strategy to further promote investment and strengthen
institutional relationships, BOI has, since its establishment,
adopted a preemptive approach in forging and encouraging a
strong collaborative framework with its counterparts worldwide. In
2014, BOI concluded a total of 11 Memorandums of Understanding
(MoUs) among which 8 were signed with Investment Promotion
Agencies and the remaining 3 with the Bureau of Commerce of
Qingdao Municipal Government of the People’s Republic of China,
Nomura Research Institute of Japan and Casablanca Finance City
Authority of Morocco, respectively. For the year 2014, 8 MoUs
were signed with the Investment Promotion Agencies of Russia,
Hong Kong, Cameroon, Burundi, Ethiopia, Burkina Faso, Tunisia
and the Republic of Marshall Islands.
These collaborative agreements essentially aim at promoting
exchange of investment-related information and providing the
necessary support in promoting and facilitating investment as
well as organisation of overseas missions. In addition, the MoUs
provide an ideal framework which facilitates the development of
exchange programmes with specific focus on capacity building in
terms of exchange of technical expertise, knowledge and training
opportunities.
BOI has signed MoUs with 34 Investment Promotion Agencies since 2003.
13
3.2
14
Sectoral Review &
Key Projects
In 2014, the Board of Investment facilitated a number of projects covering various sectors :
• Ocean Economy
• Financial Services
• Manufacturing
• Seafood / Aquaculture
• Agro Industry
• Film Industry
• Freeport
• ICT-BPO
• Real Estate & Tourism
15
Ocean Economy
Following the work conducted by some 20 agencies involved in the development of the Ocean Economy, eight priority areas were
identified, namely Seabed Exploration for Hydrocarbon and Minerals, Fishing, Seafood Processing and Aquaculture, Deep Ocean
Water Applications (DOWA), Marine Services, Marine Biotechnology, Seaport related Activities, Marine Renewable Energies and Ocean
Knowledge.
While the medium and long-term strategies are being developed by the 8 advisory councils responsible for each of the priority areas,
quick wins identified for this new sector are being implemented.
Seabed Exploration for
Hydrocarbon and Minerals
Under the leadership of the Prime
Minister’s Office a legal, fiscal and
regulatory framework for the exploration
and exploitation of hydrocarbons and
minerals in our maritime zone is being
developed. BOI has played an important
role in this initiative, assisting in the
structuring of the project and participating
in the drafting of key documents. The
project is expected to come to fruition by
mid-2015, with the launch of expression
of interest for bids.
Fishing, Seafood Processing and
Aquaculture
In 2014 the target of 60,000 tonnes of
fish by transshipment has been met. In
addition substantial progress has been
made to develop aquaculture activities
with the proclamation of 20 additional
sites. A reduction in the leased fees
was also noted. The combined effects
of those actions are expected to reflect
on aquaculture production volumes. BOI
also partnered with “Agence Française de
Développement” (AFD), and the Ministry
of Ocean Economy, Marine Resources,
Fisheries, Shipping and Outer Islands for
two studies to be carried out, namely (i)
attracting investment in new seafood
business activities and (ii) accelerating
the
development
of
sustainable
aquaculture industry in Mauritius, with
recommendations to move this sector
forward by mid-2015.
Deep Ocean Water Applications
(DOWA)
As the institution responsible for the
development of DOWA, BOI worked with
the relevant stakeholders in view of the
proclamation of the relevant section of the
Maritime Zone Act (MZA) which makes
provision for DOWA activities. Moreover,
BOI also worked on the regulations for
prescribed DOWA activities with the first
project being expected to take off in 2015.
16
Marine Services (Ship Registry)
BOI and the Shipping Division worked
out a joint marketing programme
focused on increasing the visibility of the
Mauritius Open Registry through targeted
marketing and awareness campaigns
with the objective of doubling the registry
roll to 300 vessels by end 2015.
Marine Biotechnology
Five public and one private sector
institutions are currently involved in
marine biotechnology,
namely the
Mauritius Oceanography Institute (MOI),
Albion Fisheries Research Centre,
the University of Mauritius (UOM), the
Centre For Biomedical and Biomaterials
Research
(CBBR),
the
Mauritius
Research Council and Ireland Blyth Ltd.
The public institutions have been assigned
to develop a common protocol for sharing
of research data and focus on specific
fields of study. BOI is working closely with
the relevant partners for promoting the
Mauritius Marine Biotechnology sector
and in the medium-term assist in the
marketing of possible breakthrough in
research applications on local sponges
and microalgae.
Seaport-related Activities
Seaport-related
activities
such
as
bunkering, transshipment and cruise
activities
will
be
considered
for
development and will be driven by the
Mauritius Ports Authority. The Mauritian
seaport holds attractive value propositions
and is competitive as a bunkering port,
transshipment services as well as home
porting and destination stop for cruise
lines.
Bunkering activities have been partly
liberalised in 2014 and, in addition,
infrastructure works in view of increasing
the port cargo handling capacity are
expected to be completed by end 2016. The
annual throughput capacity is expected to
increase to 750,000 TEUs from a current
550,000 TEUs and a dedicated fishing
quay is under consideration.
Marine Renewable Energies
In order to encourage young graduates
to develop commercial applications for
the Ocean Economy, the creation of an
Ocean Technology Incubator (OTI) was
approved by the BOI board. The OTI will
cater for some 10 projects within the next
three years.
Ocean Knowledge
BOI has agreed to assist in promoting
the Ocean Economy under the export of
services umbrella. In 2015, it is expected
that BOI and UoM will work closely to
promote relevant courses in the region.
2014 was a fruitful year for the financial services sector, characterized
by the rigorous marketing and facilitation initiatives undertaken by
BOI, both on the national and international fronts. In 2014, the
financial services sector contributed 10.3% to GDP, representing a
value addition of around MUR 35 billion to the economy.
Financial
Services
For the year under review, there were more than 200 companies
engaged in the provision of high-level financial services, a figure
which is expected to grow further in 2015, thereby creating more
jobs and increasing the level of sophistication of the sector.
The sector directly employed more than 15,000 high-skilled
professionals, including around 150 foreign executives. This sector
witnessed a substantial increase in FDI from MUR 716 million in
2013 to MUR 1.8 billion in 2014.
With the aim of increasing the visibility of the Mauritius International
Financial Services Center (MIFC), BOI pioneered a series of
initiatives, both locally and internationally. On the local front BOI
supported the Islamic Financial Services Board Summit which
was held for the first time in Africa. The aim was to reflect on the
rapid growth of Islamic finance during the last decade. BOI also
supported the organization of the first edition of Mines and Money
Acess to Africa in Mauritius and also organised the 4th edition of the
Private Equity Conference in Mauritius. On the international side to
enhance the visibility of Mauritius as Financial Services Centre, BOI
participated at Mining Indaba, China Offshore Summit and Mines
and Money London.
BOI facilitated a number of projects in Mauritius in the banking
sector and assisted several entities licensed in the global
business sector through technical committees with regulators and
stakeholders in order to address issues and advise them as to how
to increase substance. Some of those technical committees’ work
culminated in improvements in the regulatory landscape, either
through amendments of existing laws or through enactment of new
ones.
On the Insurance side, in order to enlarge the spectrum of
insurance services in Mauritius, BOI worked in close collaboration
with the Financial Services Commission and the Association of
Trust and Management Company (ATMC) to provide inputs for the
development of a new law dedicated to captive insurance.
With regard to Capital Markets, BOI worked closely with the
stakeholders for the development of a conducive environment
for the listing of specialist debt instruments such as Eurobond
in Mauritius, and for increasing the attractiveness of Mauritius to
mining companies for capital raising and to international companies
for IPOs launching.
STATISTICS
Contribution to
GDP
value addition of around
MUR
35 Billion
to the economy
10.3%
Foreign
Investment
more than
1.8
MUR
Billion
17
Manufacturing
2014 was an exciting year for the manufacturing sector. New
activities have emerged in the Mauritian manufacturing landscape
providing a new thrust to the industry. New industry sub-sectors
such as flexible packaging, lubricant blending, gold casting and
medical devices are now complementing and consolidating the
current manufacturing base.
Moreover, 2014 has witnessed the launch of new projects and
important expansion plans of existing companies. During the
course of 2014, international manufacturing groups such as Sun
Packaging (Oman – Flexible Packaging), Matsushita Greatwall
(Singapore – Mattress & Furniture), Knita CC (South Africa Textile) and Sivoko Lubes (India – Motor Lubricants) started their
operations in Mauritius. Moreover, existing companies, namely
Island Brush Ltd (France – Paint brush), BGH Ltd (France - Watch
Parts), Mauriflex (France - Flexible Packaging), Apollo Tubes
(India - Steel Tubes), Metal Can Packaging (Indonesia - Metal
Cans) and Natec Medical (France - Medical Devices) engaged
into ambitious expansion projects consisting of land acquisition,
construction of new industrial premises and acquisition of new
equipment.
These major expansion projects testify to the sustainability of
manufacturing companies which are now targeting an increased
production capacity, through higher productivity and efficiency.
It is estimated that more than MUR 300 million have been
invested in those expansion projects and more than 150 jobs
created.
It is also encouraging to see that foreign companies recently
established in Mauritius are anchoring their positions in the
Mauritian manufacturing landscape by improving product
offering and diversifying their services. For example, Stern
Casting Ltd, a South African company established in 2013 and
based in Petit Raffray, is now supplying minted gold bars to local
jewelers. In the long term, the company wishes to develop all the
annexed gold refinery activities in Mauritius with the objective of
making the island a hub for gold refining and trading.
It is worth highlighting that important high value-added
manufacturing projects will materialize in 2015, namely in the
area of sunglasses and PET bottle manufacturing. BOI is already
facilitating some 4 projects.
STATISTICS
New
Players
from Oman,
Singapore,
South Africa,
India
More than
MUR
300 Million
invested in
expansion projects
18
2014 proved to be a positive year for the seafood and aquaculture
industry. The sector was boosted by the expansion of existing
projects in the aquaculture sector and the establishment of new
projects in the fishing sector.
The Ferme Marine de Mahebourg (FMM), which has been
involved in marine fish farming since 2002, started its expansion
activities in 2014. FMM currently operates 2 farms in the south-east
lagoon of Mauritius and is extending its activities over 3 additional
fish farming sites.
Seafood /
Aquaculture
Xinfa Company Overseas Ltd began its first campaign in 2014.
The company operates 5 purse seine vessels, all of which sail under
the Mauritian flag and are principally engaged in tuna fishing.
The industry also reached an important milestone in ensuring
its long-term viability in 2014. Indeed an agreement was finally
signed with the Federal Service for Veterinary and Phytosanitary
Surveillance of Russia, allowing Mauritius to export its fish products
to Russia. This breakthrough is extremely important as it will enable
the country to diversify its seafood export markets which have till
now been predominantly EU centric.
With the increasing pressure on the need to limit fish catches in
the Northern Hemisphere and rising demand for seafood products,
the Mauritius seafood sector has benefited through its key
geographic location in the Indian Ocean. The industry achieved a
laudable performance in 2014, in terms of export value, volume and
investment.
Indeed the industry ended the year on a better note with an export
volume amounting to 128,212 tonnes for 2014, compared with
108,420 tonnes in 2013, an increase of 18% (19,792 tonnes).
In terms of value, seafood exports reached MUR 13.9 billion in
2014 which represented a decrease of 4.4% over the 2013 export
value of MUR 14.6 billion – the decrease being attributed to the
declining price of tuna on the world market.
Prospects
Development of an integrated fishing operation: BOI has
received an expression of interest from an international group to
invest in an integrated fishing business comprising fishing vessels,
processing and storage facilities and fish logistics infrastructure.
The project which has an implementation period of 3 years is
expected to commence in 2015.
In addition, both local and foreign operators have expressed
interest to invest in aquaculture. Accordingly, the process for the
issuance of development permits has been initiated. The local
private sector has also expressed interest to develop new seafoodrelated infrastructure such as private fishing quays and processing
facilities. Major developments are expected in the seafood and
aquaculture space in 2015.
STATISTICS
Seafood exports
MUR
13.9 billion
export volume
128,212
tonnes
19
Agro Industry
2014 has turned out to be an eventful year for the agro
industry. Mauritius was the recipient of the UNDP-funded
program for the development of sustainable agricultural
practices. Accordingly, a sensitization exercise was
carried out by the Food and Agricultural Research and
Extension Institute on natural farming techniques for the
promotion of the use of natural products in food-crop
production.
The agro industry furthermore continued its efforts to
consolidate and diversify its activities with the elaboration
of value-added products with a view to achieving
sustainable growth. In this context the process for
commercial export of agri biotech products was initiated
in 2014.
Aadicon Biotechnologies Ltd, engaged in the production
of agricultural biotech products such as frozen animal
semen, biofertiliser and bio control agents, started
commercial exploitation of those products in 2014. The
company secured export orders from Uganda and is also
actively working towards securing additional markets in
Nigeria and Tanzania.
Development of a poultry processing facility: BOI
has received an expression of interest for the setting
up a processing facility to develop high value-added
poultry products and the investment amounts to around
MUR 240 million. The project targets the export market.
Mauritius produces around 40,000 tonnes of poultry
annually and there are significant opportunities to add
value to the local products.
Seeds production: Involves the development of a seeds
production facility for the production of onion, maize and
sweet corn seeds. The company aims to invest around
MUR 30 million. Mauritius can potentially develop into a
seeds production centre for Africa, particularly because
of the country’s disease-free status, making the island an
ideal production platform.
STATISTICS
Investment in
Poultry processing
facility
240
MUR
million
Investment in
Seeds Production
MUR
20
30 million
Film Sector
Launched in 2013 the Film Rebate Scheme (FRS) has now gained momentum. The scheme makes provision for a 30% rebate to local and
foreign film producers on their qualifying production expenditures.
The scheme is a key enabler for the development of the cinematographic industry as an important pillar of the Mauritian economy.
The scheme has helped to develop several activities in the film industry, namely media equipment rental companies, model and casting
agencies, transport companies, catering business, guest house providers, amongst others. It is estimated that these companies have
benefited approximately MUR 100 million in terms of savings on expenses to date.
2014 has been a thriving year. It has witnessed the shooting of big productions such as Humshakals, Villain, Shaukeen, Break up Guru,
Stranded in Paradise and many more. MUR 450 million of qualified production expenditure were recorded by end 2014 through the
completion of 20 productions under the FRS.
2014 was also characterized by a remarkable growth regarding the number of projects that have been approved and completed as
compared to 2013.
Projects Approved
Projects Completed
24
9
6
2013
2014
Despite India being the main sourcing market, the Film Rebate
Scheme has also attracted productions from other countries such
as South Africa, China, Korea and Germany. Productions have
ranged from various categories such as films, commercials and
TV programs.
Coupled with the scheme, hassle-free shooting experience, and
the visually pleasing and vibrant shooting locations are strong pull
factors that are encouraging international productions to expand
their endeavours in Mauritius.
Savings of
MUR
100
million
20
Going through the value chain, the next endeavour is to ensure
that strategic initiatives are in place to empower the local talent
to grow the industry and support foreign productions. Thus, in
October 2014, BOI collaborated with the Fashion and Design
Institute for the development and servicing of a three-month
training program on film editing for potential local editors. 45
people have been successfully trained and are ready to offer their
services to the film industry.
20
productions
completed
450
MUR
million
qualified production
expenditure by
end 2014
21
The Mauritius Freeport has since 1992
played a pivotal role in positioning
Mauritius as a leading regional trading,
logistics value-addition and distribution
hub. Mauritius is today home to global
operators looking at exploring the
regional and international markets. The
Mauritius Freeport ranked among the top
15 free zones in the Global Free Zones of
the Future 2012/13 report published by
FDI Magazine.
range of products in terms of its facilities
for intra and extra regional trade. The
economic activities generated in the
sector are impressive. The Freeport hosts
companies involved in regional trade,
break bulk operations, simple assembly
and
transformation,
LPG
storage
and re-export, processing of seafood
products for leading global markets in the
EU, the US and Far East, as well as light
assembly and manufacturing for exports.
In 2014, with the continued development
of projects, the Freeport sector has
contributed massively to increase the
trade performance in terms of value and
volume from MUR 23 billion and 347,000
tons in 2013 to MUR 47 billion and
579,000 tons in 2014.
Although the Freeport sector contributes
only 0.5% to GDP, it has been growing
at a sustained pace in excess of 3%
over the last 5 years. There are 260
active companies comprising Freeport
Operators and Developers employing
more than 3,000 people.
Today, the Mauritius Freeport provides a
modern integrated marketing, distribution
and logistics platform that offers a wide
More importantly, the Freeport Sector
has multiple spill-over effects on various
sectors of activity of the economy which
include retail trade, transport, logistics,
professional
services,
construction,
engineering, port and airport-based
activities, banking and insurance,
amongst others.
By taking advantage of its strategic
position mid-way between Asia and
Africa, the Mauritius Freeport is poised
to become an integral part of the new
economic architecture and it is well placed
to catch the tail wind of this new phase
in global trade by building sophisticated
networks of trade and financial links.
Freeport
Key projects that materialized in 2014 are:
• Petredec (Mauritius) Ltd which set up as a Private Freeport Developer. In April, the company inaugurated its new
LPG storage facilities at Mer Rouge. Investment in the project has been to the tune of MUR 1.2 billion.
• Royal Cresta Paints (Mauritius) Ltd started its minor processing plant for manufacturing of paint products in the
Freeport. Investment in the project has been to the tune of MUR 23 million.
• Africasia Electronics Manufacturing Ltd was issued with a Freeport certificate for the assembly of television. Proposed investment of the project amounted to MUR 45 million.
260
active
companies
3,000
jobs
22
The ICT-BPO sector which is a large
contributor to the GDP of the country,
is currently in a maturity phase with an
estimated contribution of 6.4% to GDP
in 2014, an estimated growth of 6.5% for
2014 while mobile penetration reached a
121.7% threshold in 2013. This indicates
that Mauritius has been consolidating
its position as the preferred ICT-BPO
destination for local and international
entrepreneurs. Furthermore, the industry
has registered diversification with new
segments being developed. Local
operators are offering more services and
products in addition to their main areas of
focus. For example, several traditional BPO
non-voice organizations are now offering
voice support and even IT outsourcing
services such as software development
and mobile applications development.
The BPO industry has moved up the
value chain with 25% of BPO non-voice
companies offering high-end Knowledge
Process Outsourcing services.
The industry has proved its capacity
to accelerate both social cohesion and
economic
development,
eventually
leading to a higher standard of living.
Foreign direct investment has played
a key role in this context, with large
multinationals providing employment to
a considerable number of individuals. In
2014, reputable international ICT-BPO
companies have set up in Mauritius
including:
1. Techno Brain
2. Besedo
A CMMI Level 3 and Africa’s leading custom
software application provider offering
innovative IT Solutions, IT Education and
Training and BPO / IT Enabled Services
to NGOs, Government and Private
organisations globally. Headquartered in
Nairobi, Kenya, Techno Brain is present in
Burundi, Ethiopia, Ghana, India, Malawi,
Mauritius,
Mozambique,
Myanmar,
Namibia, Nigeria, Rwanda, Saudi Arabia,
South Africa, South Sudan, Swaziland,
Tanzania, UAE, Uganda, UK, USA,
Zambia and Zimbabwe. Techno Brain is
a people-oriented company that provides
its personnel with conducive work
environment and opportunity to lead and
grow. The company has invested MUR 15
million in the Mauritian office and employs
10 persons.
The market leader in quality assurance
moderation for classifieds with more than
10 years’ experience in reviewing user
content, vetting it against guidelines and
brand direction, and taking appropriate
action - approving, rejecting, or escalating
the post. Besedo moderation protects
International brands with high-speed
human vetting of user content. Besedo
Mauritius employs around 30 persons. The
company has made an initial investment
of MUR 10 million.
ICT - BPO Industry
contribution to
20,000
jobs
GDP
6.4%
23
Real Estate
Foreign Direct Investment (FDI) in Real Estate sector amounted to MUR 6.2 billion 2014. Accommodation and food service activities
attracted FDI worth MUR 4.9 billion while the Construction sector registered investments to the tune of MUR 376 million.
2010
14,151
11,447
13,766
7,745
5,551
8,352
11,697
12,894
13,948
20,373
FDI INFLOWS 2010 - 2014 (MUR MILLION)
2011
2012
FDI inflow in HPD
2013
2014
Total FDI
Source: Bank of Mauritius
Total sales of luxurious residential units surpassed 1,400 units in December 2014 with over 265 deeds of sale signed during the year.
Investment in IRS/RES units
1600
No of units
1400
1200
1000
800
600
400
200
0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
05
2006
2007
2008
2009
2010
2011
Cumulative Sales
2012
2013
2014
Quarterly Sales
Source: Board of Investment
A record number of new property development projects were presented in 2014. Showcase real estate projects range from ambitious
initiatives in the luxurious residential sector with 23 developments approved and planned by property developers under the IRS and RES.
16 RES projects are currently being developed out of which 6 IRS projects are being implemented in phases.
Major high-end residential projects under the IRS and RES are planned to kick off. The Parc de Mont Choisy IRS project, expansion of the
Azuri Village, La Tourelle IRS at Black River, Monroze IRS at Baie du Cap, amongst others, are projects planned for development. A major
housing project, under the Affordable Housing Empowerment Programme, planned by the Sugar Investment Trust (SIT) is scheduled for
development in New Grove in 2015.
Tourism
Tourist arrivals in 2014 witnessed a year-on-year increase of 4.6% compared to 2013 with 1,038,968 tourists visiting Mauritius last year.
Figures released by Statistics Mauritius indicate that Europe remains our main source market with over 54.9 % of arrivals (+4.3% increase
from 2013) and with France as the main source country with 243,665 arrivals. An impressive growth (increase of 51.2%) was recorded on
the Chinese market which is now the fifth tourism source Mauritius welcomed 63,365 Chinese visitors in 2014 against 41,913 in 2013. The
Indian market indicated a strong growth with 61,167 Indian travelers visiting Mauritius against 57,255 in 2013, representing an increase
of 6.8%. Gross tourism earnings grew by 6.7% from the previous year, increasing from MUR 41.5 billion to MUR 44.3 billion. Total direct
employment in the tourism sector is estimated at over 28,700.
24
Tourist arrivals by country (%) 2014
Italy 4%
Germany 8%
France 30%
India 8%
China 8%
South Afica 11%
Reunion Island 17%
United Kingdom 14%
Source: Statistics Mauritius
2014 saw investments by prestigious international brands in the Mauritian tourism sector.
Riu Hotels & Resorts, a company based in Spain and operating a chain of 100 hotels and resorts across 16 countries, and TUI A.G,
a German multinational tourism company, completed the takeover of three hotels in Le Morne previously known as Indian Resort, Le
Mornea and Le Moreva. The project represents an investment of nearly MUR 3.3 billion and will see the hotels reopen as Hotel Riu Le
Morne Resort in February 2015. An estimated 360 direct jobs are expected to be created.
The 5-star Le Touessrok Hotel, located in Trou d’Eau Douce, was re-launched as the Shangri-La Le Touessrok and Spa in August 2014,
following an investment of over MUR 800 million in the hotel by Shangri-La Hotels and Resorts, a premier Asian hotel group based in Hong
Kong. Shangri-La Hotels and Resorts owns and manages over 80 hotels under the Shangri-La brand across the globe.
La Plantation d’Albion Club Med resort, a 266-room hotel situated in Albion, was acquired for MUR 2.2 billion by W.P Carey and Company
LLC, a real estate investment trust based in USA. The company owns and manages a diversified global portfolio of approximately 1,020
properties in 21 countries. The hotel will continue to operate under the Club Med banner.
FDI
in Real Estate
28,700
MUR
6.2 billion
direct jobs
FDI
in Accomodation & Food
sales of luxurious
residential units
FDI
in construction
MUR
400
MUR
4.9billion
376 million
25
3.3
Marketing & Promotional Initiatives
FDI inflows during the year under review increased by 48% compared to 2013 creating well-paid jobs and diversifying
the economic base of the island. Despite the persistent economic turmoil that has rocked the business world, Mauritius
realised some good results.
Countries like France and UK have maintained their investments flows to Mauritius while new sources of investment were
recorded, namely from countries like US, Luxembourg and United Arab Emirates. New industries like Healthcare & Life
Sciences have attracted investments while sectors like Hospitality, Real Estate and Financial Services maintained their
position as major recipients of foreign capital.
In 2014, the Board of Investment has been active on the international front and adopted a three-pronged strategy focused
on
1. promoting Mauritius as an investment destination through an industry-targeted marketing strategy to attract projects
in various sectors;
2. enhancing the visibility of the country through a sustained PR campaign and image building; and
3. promoting export of services.
Key initiatives undertaken in 2014 included:
• Organization of 42 investment promotion initiatives comprising road shows, investment forums, international conferences,
targeted missions, ministerial visits & local events
• More than 2,000 cold targeting across markets
• Enhancing the visibility of Mauritius/image building through communication campaign. As a result of which some 26
interviews & adverts in local and international media were published
• Retained the Services of the following PR agencies: Mercury for USA, Ogilvy for India & Newgate Communications for a
global communication campaign
• Generation of 317 Leads and 35 key projects across sectors (ICT, Financial services, fisheries, manufacturing & film
industry)
• Materialisation of 20 projects with a realized value exceeding MUR 308 million
• Organisation of three country weeks by ACE
Review of the performance of our key markets
In 2014 BOI adopted a targeted approach with the objective of generating leads and building a pipeline of projects. In
this respect in all the regions, in addition to participation in events and conferences, BOI conducted a series of targeted
missions that have helped to generate some 317 leads.
Our efforts were geared to consolidate our presence in traditional markets such as UK, France, South Africa and India,
while reinforcing our strategy with the Asia Pacific region to nurture our economic relations and bolster the position of
Mauritius as a preferred investment platform in the region. Some new European market segments were targeted in order to
enable us to maximize our reach. BOI also initiated some actions in the US with a timid presence on the market. However,
with the commitment of the US Government to enhance trade and investment with Africa, this market can offer significant
opportunities.
26
EUROPE
After a double-dip recession since 2008, there are genuine
signs that a more lasting recovery is now taking place in
the EU and the euro zone. Growth turned positive in some
countries in 2014 while outlook has improved in the more
vulnerable ones. On the other hand, Russia and Western
Europe have encountered a low economic performance.
Given the economic situation prevailing in the old
continent, many companies especially from the Western
Europe are looking at relocating, and there is an increasing
interest for investment in Africa. According to FDI Markets,
FDI from Western Europe to Africa amounted to USD 47.7
billion compared to USD 21.3 billion in 2013.
Europe is one of our island’s strategic partners and an
important source of Foreign Direct Investment. FDI inflows
have been sustained over the last 5 years and in 2014 FDI
amounted to MUR 8.2 billion, representing 58% of our
total FDI. Compared to 2013, this represents a two-fold
increase and France maintains its position as the leading
FDI provider to Mauritius.
Since 2013 and in order to consolidate our offerings on
the European market, BOI has been very active on the
European markets through dedicated country desks.
In view of broadening our business network across the
continent, BOI further consolidated its relations with its
counterparts, the business chambers and the industry
associations in Europe and close working relations have
been established with most of the leading associations.
France has been the highest FDI provider with FDI averaging MUR 3 billion over the last 5 years, reaching MUR
3.5 billion in 2014. Acknowledging the importance of this market, BOI engaged intensively in a promotional
campaign to ensure a sustained presence in France while tapping new cities and focusing on various sectors.
BOI participated in the following key international forums to showcase the investmemt opportunities
while positioning Mauritius as the platform for Africa.
• With a view to promoting the opportunities in the Real Estate sector, BOI
led a delegation of 15 property developers to participate in the
Salon National de L’Immobilier, held in Paris from 3 to
6 April 2014. The exhibition provided a platform for
networking to the promoters, BOI conducted a series
of targeted one-to-one meetings.
• Pursuant to the Government objective to develop the Ocean
Economy, BOI participated in the Sea Tech Week 2014, held
in Brest from 13 to 17 October 2014 which regrouped academia,
industry, governmental organizations, and public institutions, among
others.
France
• BOI also participated in Futur Allia 2014, an international, multi-sectored,
matchmaking forum which brought together more than 10,000 participants under
one roof and in Patrimonia Convention to showcase the opportunities in the
Financial Services industry.
The response following attendance in those forums has been very encouraging and
important contacts have been established.
BOI also engaged extensively into a series of targeted strategies. Out of this, more
than 25 projects have been generated in various sectors, especially in ICT, Hospitality
& Property Development and Life Sciences with a project value of more than MUR
300 million. Many leads have also been generated in various sectors.
In 2014, Mauritius remained an attractive destination for Work & Live for the French
investors and an increase of 67% was noted compared to 2013 in the number of
applications for Occupation Permits by French nationals. In order to attract foreign talents,
expertise and high net-worth individuals into the country, BOI intensified its communication and marketing
campaigns in France with a view to making the country increasingly known to the business community, retired non-citizens
and to the public at large. BOI participated in the 2nd edition of the Forum Expat, organized by the group Le Monde, held
on Tuesday, June 3, 2014 in Paris. The event served as an excellent platform for BOI to market the Occupation Permit
(OP) concept and contributed in reaching the target of 5,000 OPs by end of 2014.
27
The UK market remained one of our major sources of FDI with an average annual investment of MUR
2.47 billion for the last 5 years. A drop was recorded during 2013 where FDI from UK stood at MUR 503
million, but signs of picking up were seen in 2014 with FDI amounting to MUR 892 million.
In order to enhance visibility and maintain our presence on the UK market, BOI participated in key
international events and investment forums and focused on sectors which hold potential, especially
Real Estate, Financial Services, Film and Education. A pipeline of projects with project value exceeding
MUR 300 million was generated and many partnerships have materialized in the education sector.
BOI participated in the following events:
• Real Estate was promoted extensively through participation in the London Property Show, held
on 11 & 12 April 2014. BOI was accompanied by 10 property developers and had several meetings
during the event. Some 200 people visited the Mauritius pavilion and the developers were able to
generate interesting contacts and finalise the sale of four RES and apartments.
United
Kingdom
• With the aim to promote the Mauritius International Financial Centre as a risk-minimising and
returns-maximising platform for mining investment and projects in Africa, BOI participated
in the Mines & Money London Conference, held from 1 to 5 of December 2014. BOI
had a speaking slot to present Mauritius as a mining and capital raising platform and
also had a booth to disseminate information on its jurisdiction. This leading mining
event allowed BOI to capitalize on the rich presence of a wide spectrum of investors
and mining developers.
• In order to give a boost to the education sector thereby attracting UK institutions in
Mauritius, BOI organized with the Foreign and Commonwealth Office (FCO) the 3rd
edition of the Mauritius International Knowledge Investment Forum (MIKIF) on 4th
of March 2014 in London. The event attracted around 100 participants and saw the
participation of 20 speakers from UK, France, South Africa and Mauritius.
Switzerland has sustained its investments in Mauritius, especially in the
Financial Services sector. FDI in 2014 amounted to MUR 571 million.
An increasing interest for Africa was noted. Thus, to consolidate
its presence, BOI, together with a delegation of private sector,
participated in one the most important events held in Switzerland,
the Africa CEO Forum, organized by Groupe Jeune Afrique in
partnership with the African Development Bank. This high-level
international event, which regrouped more than 650 African
and international CEOs, financiers and business leaders
allowed for fruitful interaction with delegates and officials
from other African countries and interest was recorded
in the Financial Services, Life Sciences and Education
sectors. Several requests for setting up of global
structures were also registered.
28
Switzerland
Other European markets
Over the last years, Mauritius registered new sources of FDI from European countries such as Luxembourg, Germany and
Belgium while interest was also received from Russia, Austria and Turkey. In view of creating awareness, building relations
and generating leads and contact from those potential countries, BOI targeted those new markets and conducted missions
in Germany, Belgium, Turkey and Austria.
• A Pre-Mission was conducted in Russia to assess the potential of the country and identify areas where collaboration could
be sought.
• Mauritius participated as the ’Partner Country’ to the Izmir International Fair which was held from 29 August to 2 September
2014 in Izmir, Turkey. The Ministry of Industry, Commerce and Consumer Protection, accompanied by the Board of
Investment, Enterprise Mauritius, the Mauritius Tourism Promotion Authority and the Mauritius Chamber of Commerce
& Industry led a business delegation of more than 40 people. The Mauritian participation aimed at showcasing the
“savoir-faire” of the Mauritian industry, promoting Mauritius as a pro-business investment destination as well as as an
International Financial Centre of substance and a platform to do business in Africa, as well as an attractive tourist
destination. On the sideline of the event BOI organised two workshops to promote the country as an investment destination
and financial services centre.
• In view of targeting companies in the area of medical devices and biotechnology, BOI participated in the European MedTech
Forum, the largest health and medical technology industry conference in Europe, held from 15 to 17 October 2014 in
Brussels. Interesting contacts were established and interests expressed by research companies. BOI also organised with
the support of Agence wallonne à l’Exportation et aux Investissements Etrangers (AWEX) a series of targeted meetings
with companies in various sectors to promote the Mauritius offering. AWEX confirmed its intention to bring a delegation of
business people to Mauritius in 2015.
• BOI also participated in the “Forum Emerging Markets 2014’’, held in Vienna on 4th September 2014 organised by the
Federal Ministry of Economy of Austria and the Austrian Federal Economic Chamber.
• A targeted investment promotion mission was also conducted in Germany in view of maintaining our presence. The
objective was mainly to target manufacturing and biotech companies. Two companies in the area of manufacturing of high
precision mechanics have expressed interest to invest in Mauritius and will be conducting inward visits in 2015.
29
ASIA PACIFIC
Asia remains important for our investment strategy
and countries like China and India are creating new
opportunities for Mauritian developers to tap into. 2014
was especially marked by the visit of the Minister of
Commerce and International Trade of Malaysia, Dato’ Sri
Mustapa Mohamed in March 2014 and the Indian External
Affairs Minister Sushma Swaraj in November 2014
FDI from Asia Pacific countries amounted to more than
MUR 2 billion in 2014, sustaining its investment as in the
preceding years. The increase from Asia positions the
region as the second largest FDI contributor after Europe.
Given the significant level of interest from the Asian market,
BOI maintained its presence on this market and presented
a range of high-potential investment opportunities in key
markets like China and India while at the same time
targeting new markets like Japan, South Korea, Malaysia
and Hong Kong.
The Board of Investment engaged intensively with
chambers of commerce and industry associations of
this region and strong ties and collaboration have been
developed. The associations have generally been very
cooperative in disseminating information and referring
Mauritius to their members while others have been helpful
in securing meetings. Furthermore, BOI also extended
its network through interaction with key economic
stakeholders in Sri Lanka and Pakistan.
The economic relations between Mauritius and India date back to 1948.There is also an important
Indian diaspora in Mauritius and under the Occupation Permit Scheme more than 650 Indian
nationals are residing, working or have invested in Mauritius.
During the official visit of the Indian External Affairs Minister Sushma Swaraj in November
2014, BOI organized a business meet on 3rd November 2014. The Indian Foreign Minister
highlighted that Mauritius is a vital platform and acts as a gateway to Africa. She invited Indian
Corporates going to Africa to use Mauritius as a platform given the fact that the cooperation
and partnership with Africa is an integral component of India’s foreign policy.
Attracting investment from India has proved to be quite challenging over the last
2 years, especially in 2014 with the launching of the “Make in India” campaign.
FDI dropped to MUR 75 million in 2013 but picked up slightly to MUR 145
million in 2014. In order to boost up investment from India, BOI adopted a
niche strategy to (1) promote Mauritius Freeport with manufacturing companies
(pharmaceuticals, agro, high-precision engineering) for them to consider setting
up manufacturing and trading units to target the African market, (2) market
extensively the Film Rebate Scheme and (3) extend our reach to other
cities such as Bangalore, Hyderabad and Chennai.
• BOI in collaboration with CII Andhra Pradesh and Tamil Nadu organised
an investment forum on 30 January 2014 in Hyderabad and one in
Chennai on 4 February 2014. The forums saw the participation of some 100
delegates each and many potential leads have been identified.
• BOI has been actively promoting the Film Rebate Scheme to the film industry in India.
A delegation from the Ministry of Arts & Culture, the Board of Investment, the Mauritius
Film Development Corporation and the Mauritius Tourism Promotion Agency participated
in the India International Film Tourism Conclave held from 18 to 22 in February in Chennai,
Hyderabad and Mumbai. The intensive promotion campaign has resulted in the approval
of more than 10 Indian movies.
• BOI participated in the 5th edition of the CII Food and Bev Tech Conference from 22 to 24
August 2014 to create awareness about the Mauritius Freeport and promote Mauritius as a
regional base for companies to invest in agricultural projects in Africa.
Furthermore, in order to sustain our presence in India and dispel the wrong perception of Mauritius
as a tax haven, BOI renewed its contract with the PR firm, Ogilvy. Ogilvy assisted BOI in the media
campaign and more than 18 positive articles on Mauritius were coordinated by Ogilvy.
30
India
Mauritius registered important FDI inflows during 2012 & 2013 from
China partly due to G2G initiatives. The year under review saw a drop to
MUR 408 million. However, with the improvement in terms of
connectivity to China and also with the review of the Jinfei
project, it is expected that China will pick up in 2015 and
therefore maintaining presence in China is strategic. Chinese
companies seemed more attracted to Mauritius as an ideal
business platform to access countries of the region.
China
As part of its investment promotion strategy, BOI accompanied by
a delegation of 12 Financial Services firms, participated in the China
Offshore Beijing Summit, held on 28 and 29 of May 2014 to showcase Mauritius
as a thriving business destination. New contacts were established and more
than 50 expressions of interests received.
The mission was coupled with highly targeted meetings with Chinese companies
from various sectors, especially Film, Manufacturing and HPD. In view of
boosting connectivity between Asia and Africa, Chinese shipping companies were
invited to use Mauritius as a port of call on the way to Africa.
BOI also established new contacts and intensified its relations with key economic
stakeholders, especially the China Council for the Promotion of International Trade (CCPIT).
Following actions undertaken in 2013 and 2014, BOI welcomed several inward delegations, including, inter alia:
• 14 inward delegations from Chinese companies involved in the Seafood, Financial Services, Real Estate, Freeport and Manufacturing
sectors with interest to invest in Mauritius;
• 9 group delegations respectively from Shanxi, Qingdao, Fujian, Zhejiang and Beijing, amongst others
In March 2014, BOI welcomed an important delegation of officials and economic operators from Qingdao. During the visit, BOI signed
a memorandum of understanding with the Bureau of Commerce of Qingdao Municipal Government to consolidate the partnership and
enhance collaboration.
Furthermore, the Board of Investment and the Representative Office of China-Africa Development Fund in South Africa jointly organized
a one-day workshop at Le Meridien Hotel on 24th September 2014. The objectives of the workshop were to showcase the investment
opportunities and business environment in Mauritius as well as promoting Mauritius as a gateway to invest into Africa. A delegation of 34
people comprising 14 China State-owned companies was in Mauritius to attend the workshop, which also saw the participation of more
than 50 local businessmen. A memorandum of understanding was signed between BOI and CADF during the visit.
Malaysia’s economic performance has been remarkable
since its independence in 1957. It is today the world’s
third largest manufacturer of solar heaters, with complete
solar ecosystems, while leading South-East Asia’s
fastest growing oil and gas industry. With the focus on
the development of the ocean economy and the regional
bunkering hub, Malaysia is a market not to be neglected,
especially with the interest shown by Malaysian investors
following the visit of the Malaysian Minister of Commerce.
Malaysia also holds much potential for the Financial Services
industry.
BOI participated in the Global Islamic Finance Conference from 2
to 4 September 2014. The event provided BOI with the right platform to
showcase Mauritius as a trusted jurisdiction for Islamic Finance connecting
investors to Africa and Asia based on Shariah principles. The mission was coupled
with a series of targeted meetings and generated significant interest in Freeport & Logistics,
Education and Manufacturing sectors. More than 5 projects have been generated with project
value exceeding MUR 300 million.
Malaysia
31
Other Asia Pacific markets
Asia is intensifying its focus on Africa. To tap the growing interest of Far-Eastern companies in Africa, BOI embarked on a promotional
campaign in the promising markets such as Japan and South Korea in June 2014. To this end, BOI participated in the Japan Africa
Business Forum. On the sideline of the forum, BOI organised a dedicated seminar on Mauritius, which saw the participation of more
than 50 Japanese companies with a business interest in Mauritius and more closely in Africa. During its visit to Japan, BOI signed a
memorandum of understanding with Nomura Research Institute to promote business opportunities, technology transfer and job creation.
The relations with JETRO were also further intensified.
South Korea’s partnership with Africa is going from strength to strength and the country’s famous technology companies are leading the
way. South Korea’s foreign direct investment in Africa has increased considerably to reach an average of USD 1.125 billion over the last
five years. In this respect, capitalizing on its presence in this part of the world, BOI undertook a targeted mission to South Korea to build
up its relationship with key industry associations and target manufacturing companies that are exporting to Africa and inviting them to
explore the possibilities of setting up units in the Freeport to target the African market and tap the market access that we have with Africa.
Furthermore, in view of increasing the visibility of the Mauritius IFC and engaging with some of the world’s largest natural fund managers
and investment advisors, BOI participated in Mines & Money conference in Hong Kong from 25 to 26 March 2014.
US
The U.S.-Africa Leaders Summit convened by President Barack Obama on 4th & 5th August 2014, which was attended
by some 45 Head of States, is an evidence of the growing importance of Africa in the global stage. An increasing interest
was also noted from US companies to consider Africa as an investment location. Leveraging the summit, BOI conducted
a mission to Washington D.C. and was successful in engaging with key US officials, major US & African companies, key
institutions such as OPIC, USTDA and US Department of State as well as some key economic actors.
BOI also worked closely with key stakeholders and the PR firm, Mercury LLC in US to identify leads and
create awareness about Mauritius as an investment destination and a gateway to Africa.
32
MIDDLE
EAST
A number of Middle East companies have already established presence in Mauritius, especially in
the real estate and manufacturing sectors. In 2014, the country witnessed investment, especially
from UAE and Oman mainly in the manufacturing sector. Interest has been noted from several
manufacturing companies to use Mauritius as a base to target the Southern and Eastern African
countries where they believe that Mauritius has key advantages.
The amount of FDI from UAE has known a two-fold increase in 2014 compared to 2013. FDI
from UAE reached MUR 621 million. BOI facilitated major projects in the Freeport, real estate and
manufacturing sectors and projects in the pipeline amount to more than MUR 300 million.
South Africa is a major trade and economic partner for Mauritius. South African FDI
into Mauritius over the past six years have grown significantly to reach a peak of MUR
5.3 billion in 2012 and making it one of the biggest investors. However, since 2013, a
decreasing trend is recorded due to factors such as the current economic situation
and the weak rand, amongst others. Yet FDI amount remains important in 2014,
investments from South Africa stood at MUR 1.097 billion.
REPUBLIC
OF
SOUTH AFRICA
Given the strategic importance that the South African market holds for Mauritius as
a regional partner, the Board of investment implemented a strategy for a sustained
presence on this market.
A roadshow was organized from 20 to 24 January 2014 targeting Durban, Johannesburg and
Cape Town to affirm its conviction regarding the potential of the South African market. While
anchor events in the respective cities saw the participation of over a hundred business representatives, BOI also had several targeted meetings with some of the top companies of South Africa,
established key contacts and reinforced relations with key economic actors. Through this roadshow and
other targeted actions, BOI was successful in generating leads in the financial services, hospitality, property
development, renewable energy and aircraft maintenance.
Furthermore, in view of promoting the Financial Services sector, BOI participated in the most important events, namely the Mining Indaba
2014 and the Super Return Africa 2014.
• The 20th Annual Investing in Mining Indaba Conference, which took place from 3 to 6 February 2014 proved to be a convenient platform
for BOI to showcase Mauritius as the ideal structuring and capital-raising platform for mining companies targeting Africa.
• The 5th Annual SuperReturn Africa conference, one of Africa’s leading private equity event series, which took place from the 2 to 5
December in Cape Town provided a platform for BOI to explore and generate leads in South Africa while showcasing the position of
Mauritius as a trade and investment platform for Africa.
Business Success in Africa – Partnering with Mauritius for African growth (BSIA)
In collaboration with ‘This is Africa’ and Financial Times, BOI organised a business conference under the theme, “Business Success in
Africa- Partnering with Mauritius for African growth” (BSIA) on 9 December 2014. BSIA was one of the measures that was spelt out during
the National Budget 2014 of the Government of Mauritius where the BOI was mandated to organise a number of conferences in Africa.
BSIA was conceptualised with an aim of presenting an exclusive platform for African decision makers to discuss strategic partnerships
for business growth across the continent. This exclusive event saw the participation of some 170 delegates, consisting mainly of
senior representatives from the Financial Services Sector. Major conglomerates and corporates from various industries were
also present at that event.
Seychelles-Mauritius Business Forum
The Ministry of Industry and Commerce, the Board of Investment, Enterprise Mauritius and the Mauritius
SEYCHELLES
Chamber of Commerce and Industry in collaboration with Seychelles Investment Bureau and the Seychelles Ministry
of Commerce and Industry organised the Seychelles-Mauritius business forum on 24th April 2014 in Mahe, Seychelles.
Twenty private sector representatives in agro-industry, construction, media and communication, healthcare, education and financial
services formed part of the delegation.
The business forum enabled private sector players as well as the trade and investment agencies of both countries to interact and discuss
ways of accelerating joint venture collaborations and trade between the two countries. Significant opportunities for joint ventures were
identified in the Seychelles agro-industry, seafood, port-related activities, financial services and education services sectors. Some 40 B2B
meetings were held during the business forum for all the above sectors.
33
PR & Communication Initiatives
In 2014, the main focus of our communication strategy
aimed at reaching out to the global investor community while
promoting the Work & Live Concept in Mauritius. In view of
enhancing our visibility, BOI equally engaged with local and
international media through regular interviews and adverts,
totaling more than 25 for the year. BOI used an exhaustive
range of media to promote the destination which included,
inter alia:
• The development of a high level “Coffee Book”
• Brand new films in English, French and Turkish
• Revamping of the BOI website
• Reviewed materials: handy CDs, event tailor-made flyers
and monthly newsletter
• Targeted advertising campaigns in selected press overseas
as well as in the local press.
• Features & Advertising for Work & Live
Country reports
Communication & Messaging
Strategy for Financial Services
Ogilvy
BOI participated in a number of
country reports in international
magazines such as New York
Times (US), Der Speigel (Germany),
L’Express France (France), Moniteur
du Commerce International (France)
and Financial Express (India). A
country report was also featured in the
African Development Bank Golden
Book, issued for its 50th anniversary.
Following the 2014 budget, BOI was
entrusted with the task of setting up of
a joint public-private sector Financial
Services Promotion Committee to
reinforce the reputation of Mauritius
as an International Financial Centre.
A Special Fund of MUR 50 million
was provided for this purpose and
the committee appointed Newgate
Communications to devise the
communication
and
messaging
strategy for the Mauritius Financial
Centre. The phase I of the project
has been completed and the phase
II action plan will be implemented in
2015. An important component of
the plan for the sector also includes
a sustained PR and Image Building
campaign but also engagement with
key influencers and stakeholders. It
is also proposed that a brand identity
for the jurisdiction be promoted and
in this respect a series of actions have
been proposed by Newgate.
The Indian market remains important
for Mauritius.
In order to sustain
visibility, BOI renewed its work contract
with Ogilvy. During the reporting year,
Ogilvy has undertaken a number of
initiatives in terms of lead generation,
image building and press scanning.
PR & Assistance in the US
The work of Ogilvy was also key in terms
of dispelling the erroneous perception
of Mauritius as a tax haven through
the publication of positive articles and
clarification letters. Ogilvy also shared
daily updates on the economic and
political situations in India. A media
trip was organized in September 2014
to coincide with the Private Equity
Conference and aimed at positioning
Mauritius as a trusted and transparent
International Financial Centre and a
gateway to Africa.
The country reports targeted between
15,000 and 300,000 readers. Along
with creating visibility of Mauritius
on the specific markets, the country
reports have also contributed in
showcasing the multiple investment
opportunities that the country offers.
In addition, to address the negative
perception of Mauritius as an
investment destination and financial
centre, the services of international
PR agencies including Ogilvy (India),
Mercury LLC (USA) and Newgate
(Global for Financial Services) were
equally retained.
Mercury LLC which was appointed
as our PR agency in February
2014 and assisted BOI with lead
development and contacts with key
industry associations. The PR Firm
has also worked closely with BOI
to produce a set of public relations
materials, including key messages,
fact sheet, and FAQs and facilitated
a number of interviews. Furthermore,
Mercury also monitored, reported on
and provided some analysis of the
growing controversy about Mauritius
as a tax haven.
34
In terms of PR, more than 18 stories
were published to highlight Mauritius as
a trusted and well-regulated jurisdiction
and as a springboard for investments
in Africa. Other features that appeared
promoted the Film Rebate Scheme,
the opportunities for development
within the ocean economy, the health
care sector and the manufacturing
and Freeport. Several media meetings
were also organized during the visits
of Government officials and BOI representatives in India. These provided for
opportunity to promote the business
environment as well as ease of doing
business.
Local Initiatives
On the local front, BOI organized three major conferences to promote:
1.Mauritius as the ideal platform for Private Equities to structure their investment through the organization of the 4th
edition of Private Equity Mauritius
2.The biotech industry through the organization of the 2nd edition of BioAfrica
3.Mauritius as the ideal platform for Africa through the organization of the 1st edition of the Mauritius Africa
Partnership Conference
Private Equity Conference 2014
Mauritius continues to play an important
role in driving quality investments
across the African continent. According
to FDI Intelligence, it is estimated that
total cumulative investments from
Mauritius to Africa for 2012 and 2013
were approximately USD 3.47 billion.
As a result, Mauritius was the 10th
largest FDI source country for Africa in
terms of project value for that period.
This represented around 3.5% of total
investment value made in Africa during
this period.
With the aim of reaffirming the position
of Mauritius as a leading financial
and investment centre for Africa, BOI
organized the 4th annual Private Equity
Mauritius conference from 25 to 26
September 2014. Themed ‘Capitalising
Africa’s Growth’, the conference
had a special focus on the evolving
nature of investment needs of Africa,
implications for its development and
how best, as a regional financial centre
of substance, Mauritius could act as a
catalyst in this process.
The
conference
witnessed
the
participation of some 300 professionals,
including more than 100 foreigners
from 20 different countries. It regrouped
some of the most respected speakers
in the African private equity and
investment sphere, including Dr Martyn
Davies from Frontier Advisory, Terry
Smith from Fundsmith, Anne-Marie
Chidzero from Africap Microfinance
and Gail Mwamba from Private Equity
Africa, amongst others.
as well as upcoming Private Equity
funds in the process of fund raising to
connect with potential investors from
the Development Finance Instiution,
Sovereign Wealth Fund and PE
investors’ community. Moreover, it
turned out to be an excellent platform
for some of the most active funds in
Africa and other emerging regions
to share their views on why they
have chosen Mauritius to set up their
full-fledged front and back offices.
Establishing itself as a leading
deal-making platform, the conference
has allowed many African companies
35
BioAfrica
Over the years, Mauritius had made
significant strides towards the
development of biotech applications
and this has led to the emergence
of a biotech industry with four main
areas of focus, namely red biotech
(healthcare), white biotech (industrial),
green biotech (agri) and blue biotech
(marine).
The Board of Investment has been
actively involved in supporting the
development of the industry and
has facilitated investment projects
in various areas of biotech. To give
further impetus to the development of
the sector, BOI organised a two-day
conference focusing on biotech
opportunities in Mauritius and Africa
on 23 and 24 April.
The conference themed “Bio Africa
2014” featured eminent speakers
from around the globe. The event
witnessed
the
intervention
of
delegates from France, UK, South
Africa, Malaysia, Reunion, India,
and Canada as well as Mauritian
stakeholders. BioAfrica 2014 was
the ideal platform for creating
awareness, opening up new avenues
of collaboration and showcasing the
opportunities in Mauritius and Africa.
The organization of the BioAfrica 2014
was also instrumental for the materialisation of a number of projects mostly
in the medical biotech and medical
devices sectors. The conference
also met its objectives of creating
awareness about the sector and
promoting Mauritius as a destination
for Research and Development.
Mauritius Africa Partnership Conference
Announced in the 2014 National Budget as part of BOI’s actions to
spearhead the Expanded Africa Strategy, the Mauritius Africa Partnership
Conference was organised on 25 and 26 June 2014 with a view to
establishing greater cooperation at the institutional level while providing
a platform for regional Investment Promotion Agencies (IPAs) to share
experiences, encourage best practices and increase networking.
Master-classes covering country marketing and entrepreneurship,
digital government, and transformational leadership were some of the
main features. Planned country presentations showcased investment
opportunities in various emerging African economies represented.
Among the speakers were renowned Larry Farrell, the entrepreneurship
guru; Professor Srikumar Rao, one of the world’s leadership coaches;
Honourable Dato Sri Idris Jala, the main architect of the Transformation
Programme of the Government of Malaysia; and Mr. Lim Siong Guan,
former Chairman of Singapore Economic Development Board and the
Singapore Civil Service. Mr Lim has been instrumental in instructing
leadership and change management in Singaporean public sector.
More than three hundred participants comprising CEOs and
representatives of 28 IPAs and other regional organisations, local
and foreign entrepreneurs and leaders of financial institutions were in
attendance.
36
The leading role of Mauritius in the renewal of this relationship was effectively illustrated by the presentation of success
stories, innovative ideas and priorities for the future. The holding of the Mauritius Africa Partnership Conference is a key
piece in the Mauritius-Africa strategy for cross-border investment and trade within Africa. The successful outcome of the
forum and the positive feedback received from all major stakeholders and participants call for a larger-scale edition next year
with a wider participation of African and global enterprises.
BOI representatives
During the various marketing trips that were conducted, the
importance of having a presence on the ground or to have
the right network of contacts was noted. In this respect,
BOI decided to appoint a number of representatives in key
markets that would either be well connected or have access
to the appropriate network to assist BOI in its marketing and
help open the door to these markets. BOI therefore appointed
4 Honorary Representatives in India, South Africa, France
and Australia, respectively, in 2014. The role of the representatives involved, inter alia, to advise the respective country
desks officers about targets as well as events and forums
where BOI needs to be present. They also provided BOI with
updates on the market and introduced key businesses with
interest for Mauritius as an investment destination or as a
jurisdiction.
The Honorary Representatives have helped to generate
interest from potential investors, recommended participation
in important events, coordinated inward visits of investors
and high net-worth individuals.
37
3.4
a.
Reinforced Africa Strategy
Investment from Africa to Mauritius
During the period 2008-2013, the cumulative FDI from Africa to Mauritius stood at MUR 16.834 billion, making up 20.7% of the total
Mauritian FDI portfolio. With 76.3% (MUR 1.097 billion) of total FDI generated from Africa (MUR 1.437 billion in 2014), South Africa remains
the main source country for Mauritius.
Investment from Africa to Mauritius (MUR Million)
5,852
3,523
2,454
2,019
1,929
1,437
1,056
2008
b.
2009
2010
2011
2012
2013
2014
Investment from Mauritius to Africa
Cumulative investment from Mauritius to Africa stood at MUR 15,699 billion for the period 2008-2014. With the outbreak of the Ebola
disease in 2014 and a subsequent slowdown of investment towards Africa, the Mauritian investment flows to the continent amounted to
only Rs 950 Million as at 2014.
Mauritian Investment into Africa
5,000
4,503
4,444
4,500
AMOUNT (MUR MILLIONS)
4,000
3,500
3,000
3,255
2,500
2,000
1,500
1,000
500
0
1,288
590
950
669
2007
2008
2009
2010
2011
2012
Africa
38
2013
2014
c.
Networking with various organisations
During the year, the Board of Investment extended its network in Africa by signing an additional five Memorandums of Understanding
(MoUs) with its African counterparts. This brings the total number of agreements with African Investment Promotion Agencies to 26. In
addition, BOI works in close collaboration with resource persons in Africa, Chambers of Commerce of African countries as well as African
business associations.
Considered as a benchmark among the Investment Promotion Agencies in Africa, BOI also advises the Government of Mauritius on ways
and means to achieve its strategy of building a new economic partnership with Africa. In this respect, BOI conducted several consultancy
projects in Africa to assist the IPAs in their setting up or improvement of their performance.
d. Mauritius Africa Partnership Conference
The Mauritius Africa Partnership Conference (MAPC) was a key milestone achieved by BOI. For the first time ever, representatives of
Investment Promotion Agencies from 25 African countries were regrouped on one common platform to seek areas of collaboration aimed at
making Africa prosperous. This event gathered some 300 C-level delegates, who leveraged this networking opportunity to acquire a better
understanding of the economic dynamics of the respective African countries
During MAPC, the following bilateral agreements have been concluded:
-Four MoUs signed with Cameroon, Ethiopia, Burundi and Burkina Faso Investment Promotion Agency, respectively
- Investment Promotion and Protection Agreement (IPPA) signed with Egypt
Another outcome of this event has been the setting-up of an interactive online platform to enable African Investment Promotion Agencies to
work closely together in order to contribute towards promoting the growth of the continent.
e.
Implementation of 2014 Budgetary Measures
The Government has created the Mauritius Africa Fund, with a financial commitment of MUR 500 million spanning a five-year peroid. It will
contribute as an equity shareholder to a maximum of 10% of the seed capital of viable projects. With such government support, this initiative
undoubtedly gives further visibility and comfort to African authorities on the credibility and viability of the projects presented to them by
Mauritian companies.
Other major measures were also announced as part of the Expanded Africa Strategy. For instance, an additional thrust has been given
to Africa-oriented exports through the introduction of 25% subsidy on freight cost up to a maximum of USD 300 per container to any
African country excluding South Africa and Madagascar. This subsidy also has a ripple effect by developing further the Freeport as well as
encouraging investors to set up their manufacturing base in Mauritius.
Addressing the risk and security concerns while exporting to non-traditional African regions is one of the main priorities of the Government
of Mauritius and a 50% subsidy on credit guarantee insurance henceforth acts as a cushion for businessmen actively trading in Africa.
39
f.
Africa Centre of Excellence
Since its inception, the Africa Centre of Excellence (ACE) has been successful in not only establishing its footprint in Mauritius but
extending its outreach to key African markets. Moreover, ACE is also considered as a major point of reference for information and
business facilitation.
In 2014, ACE reached a target of 2,500 registered users on its online portal (www.boiafrica.com) and responded to some 150 queries on
a monthly basis.
ACE also supports the Government of Mauritius by making recommendations for the National Budget with respect to concrete measures
to intensify the level of G-to-G collaboration between selected African and Mauritian public institutions, strengthen the level of technical
cooperation, enable the transfer of technology and accelerate the pace of partnerships in sectors of key importance for African countries.
To this effect, ACE plays a pivotal role in reinforcing bilateral collaboration among several African countries and Mauritius. Amongst the
earmarked countries are Ghana, Madagascar, the Republic of Congo and Senegal. ACE is working on a paper relating to the conceptualisation, design and even development of the special economic zones in these African countries.
As part of its promotional events, one of the main initiatives undertaken by ACE was the hosting of Country Weeks. The aim of this event
is to synergise efforts and reinforce our collaboration with African Investment Promotion Agencies. This event is in line with the strategic
objectives of BOI with regard to providing enhanced services to investors and showcasing business opportunities in Africa.
In 2014, ACE conducted two country weeks focusing on Mozambique and Nigeria as target markets. These events have met with an
overwhelmingly positive response from the Mauritian business community. The IPA representatives were successful in building strong
working relationships with the local business community that were present during the country weeks.
g. Key projects facilitated in Africa
With a general awareness of the considerable growth and opportunities that African countries offer, the number of business ventures
facilitated by ACE on the continent has been rising in number and importance.
Amongst these projects were the following:
- Setting-up of an insurance business in Botswana which was launched in June 2014
- Setting-up of a 20MW solar project in multiple phases in Burundi
- Setting-up of a branch office in Zimbabwe by a company providing an E2E enterprise technology solutions
- Expansion of a poultry production in Kenya
- Setting-up of a data centre in Ethiopia
There are in the pipeline an additional 20 Africa-focused projects which are being closely monitored by ACE officers.
40
3.5
Doing Business in Mauritius
Business Climate
In our quest to continuously improve the business climate, the Board of Investment worked together with both the private sector and
the regulators to further facilitate doing business in the country. The use of information technology remained the leading factor which
drove the reform programmes. Key institutions such as the Corporate and Business Registration Department, Local Authorities and the
Registrar General Department are geared towards providing their clients with a fully computerised interface. The following key intiatives
were undertaken:
Online incorporation of companies
With the implementation of a fully integrated business registration and incorporation platform, a company can be incorporated online and
the incorporation certificate issued within 2 hours.
E-registry project
The Registrar General Department (RGD) has launched the Mauritius eRegistry Project (MeRP) which includes the following online services:
eSubmission, eTaxation, ePayment, eDelivery for movable and immovable property as well as the provision of information to stakeholders
and government agencies online.
Online application for Building and Land Use permit
The e-local government platform has been upgraded to allow online submission of applications for Building and Land Use Permit (BLP).
The new platform allows the submission of required plans, tracking and monitoring of the application by both the applicants and the
management of the Local Authority. An e-payment module has also been integrated in the BLP online system.
Moreover, through these collective efforts, Mauritius moved up to the 29th position in the Ease of Doing Business report published in October
2014. A number of improvements have been noted across several indicators including Dealing with Construction Permit, Getting Electricity,
Registering Property, Getting Credit, Paying Taxes, Trading across borders, Enforcing Contract and Resolving Insolvency.
41
International Benchmarks
No
42
Index
Global Rank
Africa Rank
1
World Bank Doing Business 2014
29 out of 189 countries
1st out of 47 countries
2
Logistics Performance Index 2014
115 out of 160 countries
18th
3
Global Competitiveness Index 2014-2015
39 out of 144 countries
1st (2nd consecutive year)
4
Corruption Perceptions Index 2014 (Transparency International)
47 out of 174 countries
4th
5
Mo Ibrahim Index of African Governance 2014
-
1st out of 52 countries
6
The A.T. Kearney Global Services Location Index, 2014
36 out of 50 countries
7
2015 Index of Economic Freedom
10 out of 178 countries
8
Economic Freedom of the World 2014 (Fraser Institute)
5 out of 152 countries
1st
9
Human Development Index 2014
63 out 187 countries
2nd after Libya
10
Democracy Index 2014
Full Democracy
1st
11
Environmental Performance Index 2014
56 out 178 countries
1st
12
Mercer’s 2014 Quality of Living Survey
82nd
1st
13
Global Information Technology Report 2014
48 out of 148 countries
1st
14
Forbes Survey of Best Countries for Business 2014
34 out of 145 countries
1st
15
Social Progress Index 2014
34 out of 132 countries
1st
4th after Egypt,
Tunisia and Ghana
1st out of 46 in the
Sub-Saharan African Region
Reform-Online OP System
The Board of Investment has implemented a user-friendly electronic platform that allows non-citizens willing to invest, work or retire in
Mauritius to submit their application for an Occupation/Residence Permit online.
The platform allows non-citizens to submit their application online, effect payment and obtain an e-version of the registration certificate. The
system comprises interactive e-forms for the application while a scanned version of all supporting documents is uploaded on the system. An
online appointment module and an e-payment system have also been incorporated. With the introduction of the new computerized system,
the Board of Investment has been able to give a better service to the business community, reduce paperwork and improve turnaround time.
43
CORPORATE
GOVERNANCE
REPORT
4. 44
45
BOI views good Corporate Governance practices as an integral component of good performance. As a parastatal body wholly owned
by Government, the organisation is committed to fulfilling its mandate in a manner which is consistent with good governance practices,
particularly accountability, transparency, responsibility and ethics.
Governing Bodies
The direction, control and accountability of the business of BOI are vested in the Board.
Business is conducted in accordance with the Investment Promotion Act, other relevant statutory provisions and the principles of good
governance. All functions are exercised in good faith with due care and diligence, and in the best interest of BOI and its stakeholders.
The Board
The Board is responsible and accountable for the performance and affairs of the organisation. It subscribes to sound Corporate Governance
Principles and ensures that the highest standard of business ethics and integrity are maintained.
The Board was composed of the following members:
Name of Board Members
Mr. Maurice Lam
Mr. Radhakrishna Chellapermal
Mr. Raj Makoond
Mr. François Woo, G.O.S.K
Mr. Yusuf Sooklall
Mr. Kreetee Coomar Ruhee
Mr. Abdool Nooranee Oozeer
Mr. Jairaj Sonoo
Mr. Gilbert Gnany
Mr. Ben Lim
Function
Date of Assumption of office
Chairman – Board of Investment
Chairman as from 19th November 2005 to 11th
Founding Partner Stewardship Consulting
December 2014
Ag. Deputy Financial Secretary
Business Development Directorate
Ministry of Finance and Economic Development
Board Member, as from 19th January 2006 to March
2015
Executive Director
Board Member, as from 8th November 2000 to
Joint Economic Council
March 2015
Managing Director
Board Member, as from 19th January 2006 to March
Compagnie Mauricienne de Textile Ltée
2015
Trade Unionist & Consultant in Industrial
Board Member, as from 8th November 2000 to
Relations and Labour Law
March 2015
Chief of Staff
Board Member, as from February 2009 to 11th
Prime Minister’s Office
December 2014
Permanent Secretary
Board Member, as from 24th June 2009 to March
Ministry of Housing & Land
2015
Chief Executive Officer
Board Member, as from 13th July 2010 to March
State Bank of Mauritius
2015
Chief Strategy Officer
Board Member, as from 2nd February 2012 to March
Mauritius Commercial Bank Group
2015
Chief Executive Officer
Board Member, as from 2nd February 2012 to March
Intercontinental Trust
2015
Board Committees
The Nomination and Remuneration Committee
For the year under review, the Nomination and Remuneration Committee, a sub-committee of the Board, was still active with the mandate
to:
I. approve recommendations for nominations, salary reviews and promotion exercise
II. approve the recommendations of Management with respect to decisions pertaining to the Managing Director’s reports
III.approve recruitment of high-calibre professionals who report directly to the Managing Director.
The following Board Members constitute the committee:
1.Mr. Maurice Lam (Chairman)
2.Mr. Yusuf Sooklall
3.Mr. Gilbert Gnany
4.Mr. Raj Makoond
5.Mr. Radhakrishna Chellapermal
46
Board Committees (cont.)
The Strategy Committee
The objective of the Strategy Committee is:
I. To oversee the implementation of the strategic plan for the Board of Investment
II. To monitor implementation of the strategies and key performance indicators
III.To provide strategic directions to ensure set objectives are attained.
The following Board Members constitute the Strategy Committee:
1.Mr. Maurice Lam- Chairperson
2.Mr. Kreetee Coomar Ruhee
3.Mr. Radhakrishna Chellapermal
4.Mr. Ben Lim
5.Mr. Yusuf Sooklall
6.Mr. Gilbert Gnany
The committee meets as and when required. Members of the sub-committee are not remunerated.
The Risk Management & Audit Committee
The Risk Management and Audit Committee has been mandated to assist the Board in adhering to its corporate governance principles and
oversee the risk management and audit function of the Board of Investment.
The detailed objectives are to:
I.To oversee matters relating to financial reporting, internal control systems, risk management systems and the internal and external audit
function.
II. To assess the controls and best practices put in place by BOI to mitigate any operational and reputational risks
III.To report on the Internal Audit as and when internal audits are completed.
The following Board Members constitute the Risk Management and Audit Committee:
1.Mr. Raj Makoond – Chairperson
2.Mr. Jairaj Sonoo
3.Mr. Abdool Nooranee Oozeer
4.Mr. Ben Lim
The committee meets as and when required. Members of the sub-committee are not remunerated.
Board Member Attendance to Meetings
Board Members’ Remuneration for the period January 2014 to December 2014
Director’s Fees
Board Attendance
(4 Meetings held in 2014)
Mr. Maurice Lam
No Fees
Attended 4 Meetings
Mr. Radhakrishna Chellapermal
240,000
Attended 4 Meetings
Mr. Raj Makoond
240,000
Attended 3 Meetings
Mr. François Woo
No Fees
Attended 1 Meetings
Mr. Yusuf Sooklall
240,000
Attended 4 Meetings
Mr. Kreetee Coomar Ruhee
220,000
Attended 4 Meetings
Mr. Abdool Nooranee Oozeer
240,000
Attended 3 Meetings
Mr. Jairaj Sonoo
240,000
Attended 2 Meetings
Mr. Gilbert Gnany
240,000
Attended 3 Meetings
Mr. Ben Lim
240,000
Attended 3 Meetings
Name of Directors
Management
The remuneration of the Managing Director and 8 Directors amounts to MUR 21.7 million.
47
Our Employees
The Board acknowledges that organizational objectives can be achieved only through its employees. Accordingly, a lot of emphasis is
placed upon the human capital by providing a healthy and safe working environment and adopting an equitable and fair approach towards
employee’s remuneration benefits.
During the year 2014, BOI recruited 1 officer on contract basis and 2 officers left the organization.
Remuneration Policy
We are an equal opportunity employer and we are committed to attracting and retaining the best people. We believe that our people are the
source of our success. We aim at motivating and compensating them by providing a competitive salary package along with related benefits.
Priority in promotion is given to employees within the organisation and selection is based on the principle of meritocracy.
We also welcome external candidates for job openings at all levels of the organisation, especially when and where specific skills and
expertise are being sought.
The individual performance is regularly and objectively measured in line with agreed objectives with the aim of promoting a performance
culture while ensuring individual growth and development.
Statement of Director’s Responsibility
The Directors of the Board of Investment acknowledge their responsibilities for:
1. Adequate accounting records and maintenance of effective control systems;
2.The preparation of financial statements which fairly illustrate the state of affairs of BOI as at the end of financial year and the results of
its operations and cash flows for that period and which comply with International Public Sector Accounting Standards (IPSASs); and
3. The selection of appropriate accounting policies supported by reasonable and prudent judgments
The external auditor (i.e. the Director of Audit, National Audit Office) is responsible for reporting on whether the financial statements are
fairly presented.
The Directors report that:
1. Adequate accounting records and an effective system of internal controls have been maintained;
2. Appropriate accounting policies supported by reasonable and prudent judgments and estimates have been used consistently;
3. Applicable accounting standards have been adhered to; and
4. The Code of Corporate Governance as applicable to State-Owned Enterprises has been adhered to.
Our Board of Directors
The Board is responsible for the overall direction, strategy, performance and management of the organisation. Authority for implementing
the Board’s policies is delegated to the Managing Director within certain limits as authorised by the Board.
Operation of the Board
Meetings of the Board are scheduled in advance and Board papers are circulated before the meeting. In order to ensure a synergy between
Management and the Board, the Investment Promotion Act provides that the Managing Director is entitled to attend every meeting of the
Board. This facilitates the implementation of policy decisions taken by the Board.
Ethics
BOI honours its responsibility in providing an ethical and safe working environment for its personnel.
BOI has issued a handbook detailing all its policies and procedures.
BOI has subscribed to a medical insurance cover for its entire staff as well as 24-hour insurance cover for accident for its entire staff.
BOI has developed a Human Resource Policy Manual that establishes the standard of conduct and ethics for its employees and provides
guidance on employees’ professional obligations.
BOI has developed and implemented a Gift Policy which details the procedures to be followed in the event corporate gifts are sent to BOI.
Environment
BOI is committed to promoting work practices that preserve the environment. Sustainability can only be achieved through a concerted effort
to minimize impact on the environment. BOI promotes a work environment with minimal paper utilization.
48
Corporate Social Responsibility
BOI’s Welfare Committee has established a programme of activities for the welfare of its employees as well as for the community at large.
Health and Safety
BOI is committed to providing and maintaining a healthy, safe and secure working environment. It believes in raising awareness of health
and safety issues, that are imperative in the prevention of accidents and improving the well-being of its staff.
Operational Risk Management
Internal Risk Management
Information Technology
BOI ensures that IT resources are optimally used to provide the organisation with the information that it needs to achieve its business
objectives while minimizing the risk of fraud, corruption and misuse of resources.
Appropriate safeguards and firewalls are in place to protect the intellectual property of BOI as well as against attacks.
While providing its employees with up-to-date IT facilities and tools to enable them to operate more efficiently and effectively, BOI has
adopted a number of policies and implemented measures to ensure an ethical and lawful use of its infrastructure.
ISO Standards and Certification
BOI has been ISO certified since 2013 and after the ISO Audit Surveillance by SGS in 2014, BOI is maintaining its ISO Certification for
2014 – 2015.
External Risk Management
Risk Monitoring Committee
A Risk Monitoring Committee has been set up within BOI under the aegis of the Risk Management & Audit Committee, which is a
sub-committee of the Board, to assess and mitigate external risks faced by BOI.
A Risk Assessment Exercise is undertaken once every quarter to assess the potential risks that could impact BOI and the Risk Monitoring
Committee has the mandate to identify remedial actions to mitigate such risks.
Adopting an Anti-Corruption Policy
As part of its commitment to promote good governance, the Board of Investment has established the Public Sector Anti-Corruption
Framework on the advice of the Independent Commission Against Corruption (ICAC).
The Anti-Corruption Framework is considered as the basic tool to entrench the principles of integrity, transparency and accountability and
it has been designed to maintain our efforts in the fight against corruption.
The Anti-Corruption Policy sets the tone at the highest level of the organisation on BOI leadership’s full commitment to a culture of integrity.
The Anti-Corruption Committee is responsible for developing and coordinating the implementation of the anti-corruption initiatives and
programmes within the organisation.
Corruption Risk Management activities have also been carried out in order to recognise and analyse any perception of corruption and
develop remedial actions to minimise and manage those risks.
These initiatives of the Board of Investment further emphasize our commitment for a zero-tolerance culture against corruption.
NOTES
Related Party Transactions
There has not been any related party transaction during the year.
49
FINANCIAL
STATEMENT
5. 50
51
REPORT OF THE DIRECTOR OF AUDIT
TO THE BOARD OF THE BOARD OF INVESTMENT
Report on the Financial Statements
I have audited the accompanying financial statements of the Board of Investment, which comprise the statement of financial position as
at 31 December 2014, the statement of financial performance, statement of changes in net assets/equity, statement of cash flows and
statement of comparison of budget and actual amount for the year then ended, and a summary of significant accounting policies and
other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public
Sector Accounting Standards and in compliance with the Statutory Bodies (Accounts and Audit) Act, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with
International Standards of Supreme Audit Institutions. Those Standards require that I comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements , whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
52
Opinion
In my opinion, the financial statements give a true and fair view of the financial position of the Board of Investment as at 31 December
2014, and of its financial performance, cash flows and budget performance for the year then ended in accordance with International
Public Sector Accounting Standards
Report on Other Legal and Regulatory Requirements
Management’s Responsibility
In addition to the responsibility for the preparation and presentation of the financial statements described above, management is also
responsible for ensuring that the activities, financial transactions and information reflected in the financial statements are in compliance
with the laws and authorities which govern them.
Auditor’s Responsibility
In addition to the responsibility to express an opinion on the financial statements described above, my responsibility includes expressing
an opinion on whether the activities, financial transactions and information reflected in the financial statements are, in all material
respects, in compliance with the laws and authorities which govern them. This responsibility includes performing procedures to obtain
audit evidence about whether the agency’s expenditure and income have been applied to the purposes intended by the legislature. Such
procedures include the assessment of the risks of material non-compliance.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Opinion on Compliance
Statutory Bodies (Accounts and Audit) Act
I have obtained all information and explanations I have required for the purpose of my audit.
In my opinion, in all material respects, the activities, financial transactions and information reflected in the financial statements are in
compliance with the Statutory Bodies (Accounts and Audit) Act.
Public Procurement Act
The Board of Investment is responsible for the planning and conduct of its procurement. It is also responsible for defining and choosing
the appropriate method of procurement and contract type in accordance with the provisions of the Act and relevant Regulations. My
responsibility is to report on whether the provisions of Part V of the Act regarding the Bidding Process have been complied with.
In my opinion, the provisions of Part V of the Act have been complied with as far as it appears from my examination of the relevant records.
Financial Reporting Act
The Directors are responsible for preparing the Corporate Governance Report and making the disclosures required by Section 8.4 of the
Code of Corporate Governance of Mauritius (“Code”) . My responsibility is to report on these disclosures.
In my opinion, the disclosures in the Corporate Governance Report are consistent with the requirements of the “Code”
K.C TSE YUET CHEONG (MRS)
Director of Audit
National Audit Office
Level 14 , Air Mauritius Centre
Port Louis
23 September 2015
53
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014
Notes
31 December 2014
31 December 2013
(Restated)
MUR
MUR
ASSETS
Current assets
Cash and cash equivalents
41,814,300
Receivables
3
Prepayments
52,785,793
5,428,195
3,855,726
1,471,459
1,928,904
48,713,954
58,570,423
2,949,869
4,263,860
10,000
10,000
12,369,422
16,312,925
15,329,291
20,586,785
64,043,245
79,157,208
36,130,389
50,087,718
Non-current assets
Receivables
Investment
Property, plant and equipment
4
Total Assets
LIABILITIES
Current liabilities
Payables
Short-term car loan
2,539,241
2,210,228
Employee benefits
1,978,285
2,781,223
3,722,823
4,614,087
44,370,738
59,693,256
13,403,318
13,292,427
Government Grant
5
Non-current liabilities
Long term loan
6
Employee benefits
Car loan
133,840
2,948,369
4,258,360
Retirement benefits obligations
7
9,623,168
7,516,417
Government Grant
5
11,061,712
13,543,951
37,036,567
38,744,995
81,407,305
98,438,251
(17,364,060)
(19,281,043)
(17,364,060)
(19,281,043)
(17,364,060)
(19,281,043)
Total Liabilities
Net Assets
NET ASSETS/EQUITY
Accumulated deficit
8
Total Net Equity
54
............................................................
............................................................
............................................................
Chairperson
Board Member
Managing Director
STATEMENT OF FINANCIAL PERFORMANCE
FOR YEAR ENDED 31 DECEMBER 2014
Notes
Year ended
Year ended
31 December 2014
31 December 2013
(Restated)
MUR
MUR
Revenue
Government grant
9
181,691,697
151,340,632
Deferred income
4,909,607
5,813,044
Revenue from exchange transactions
5,202,298
4,053,000
742,500
558,000
Revenue from non-exchange transactions
10
Other revenue
11
Total revenue
66,868,897
29,393,095
259,414,999
191,157,771
91,947,625
77,929,710
Expenses
Salaries and employee benefits
12
Other expenses
13
46,986,897
42,240,982
Investment promotion
14
113,083,887
70,612,821
5,479,607
6,383,044
257,498,016
197,166,557
1,916,983
(6,008,786)
Depreciation
Total expenses
Surplus/(Deficit) for the year
55
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
FOR YEAR ENDED 31 DECEMBER 2014
Accumulated
Surpluses/
(Deficits)
Balance at 1 January 2013
Deficit for the year ended 31 December 2013
Balance as at 1 January 2014
Surplus for the year ended 31 December 2014
Balance as at 31 December 2014
56
(13,272,257)
(6,008,786)
(19,281,043)
1,916,983
(17,364,060)
CASH FLOW STATEMENT
FOR YEAR ENDED 31 DECEMBER 2014
Surplus/(Deficit)
Year ended
Year ended
31 December 2014
31 December 2013
(Restated)
MUR
MUR
1,916,983
(6,008,786)
5,479,607
6,383,044
(4,909,607)
(5,813,044)
Non-cash movements
Depreciation
Deferred income
Increase/(Decrease) in payables
(13,681,280)
39,626,835
Increase/(Decrease) in provisions relating to employee costs
1,414,702
1,373,096
(Gain)/loss on sale of property, plant and equipment
(140,500)
55,000
(7,339)
(25,162)
(818,667)
2,735,482
(10,746,111)
38,326,465
(1,536,104)
(11,056,368)
Interest received on car loan
(Increase)/Decrease in receivables
Net cash flows from operating activities
Cash flow from investing activities
Payments for plant and equipment
Proceeds from disposal of plant and equipment
Interest received on car loan
Net cash flows from investing activities
140,500
7,339
25,162
(1,388,265)
(11,031,206)
1,536,104
11,056,368
Cash flow from financing activities
Capital grants received
Repayment of long term loan
(409,888)
(369,201)
Car Loan received from MOF
1,200,000
3,342,500
(1,200,000)
(3,342,500)
Car Loan paid to Staff
Car Loan reimbursed by Staff
Car Loan refunded to MOF
2,180,979
2,220,039
(2,180,979)
(2,220,039)
Staff Loan disbursed
(95,000)
(20,000)
Loan reimbursed by Staff
131,667
165,167
1,162,883
10,832,334
(10,971,493)
38,127,593
Cash and cash equivalents at beginning of year
52,785,793
14,658,200
Cash and cash equivalents at end of year
41,814,300
52,785,793
Net cash flow from financing activities
Net increase in cash and cash equivalents
57
STATEMENT OF COMPARISION OF BUDGET AND
ACTUAL AMOUNT FOR THE YEAR ENDED 31 DECEMBER 2014
Budgeted
Actual
Difference
Amounts
Amounts
Final Budget
Original
Remarks
and Actual
RECEIPTS
Government Grant
185,000,000
183,227,800
(1,772,200)
5,202,600
5,202,600
185,000,000
188,430,400
3,430,400
Other receipts
Total receipts
PAYMENTS
Compensation of Emoluments
-
Personal Emoluments
56,800,000
55,359,222
(1,440,778)
Other staff Costs
22,555,000
24,150,130
(1,595,130)
Goods & Services
Cost of Utilities
6,382,507
(187,493)
750,000
1,120,425
370,425
10,200,000
9,757,214
(442,786)
250,000
95,480
(154,520)
Office Expenses
3,060,000
5,252,852
2,192,852
Maintenance
1,450,000
1,159,148
(290,852)
Rent
Office Equipment and Furniture
Cleaning Services
200,000
281,879
81,879
Publication and Stationery
1,540,000
1,079,952
(460,048)
Fees to Board Members
1,900,000
1,900,000
-
Training
1,500,000
2,992,256
1,492,256
825,000
1,202,910
377,910
4,500,000
10,115,692
5,615,692
Missions & BOI Events
45,000,000
44,836,270
(163,730)
Investment Promotion Tool
10,000,000
3,313,686
(6,686,314)
International Advertising
4,900,000
790,672
(4,109,328)
Foreign Office Representative
5,000,000
Other Goods and Services
Professional Fees & Consultancy
Acquisition of non-financial assets
58
6,570,000
Fuel & Oil
Includes arrears for payment of sick leaves
for 2013 not provided for in the budget.
(5,000,000)
8,000,000
6,075,410
(1,924,590)
185,000,000
175,865,705
(9,134,295)
Includes acquisition and renewal of
software licences
Includes training on General Management
Program, Personal excellence &
leadership not provided in the budget
Fees paid for the provision of PR and
assistance in the USA and for salary
review were not provided in the budget
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1. INCORPORATION AND ACTIVITIES
The Board of Investment, a statutory body established under the Investment Promotion Act 2000, is the national investment
promotion agency falling under the aegis of the Ministry of Finance and Economic Development. The Board of Investment
(BOI) is responsible for the promotion and facilitation of inward investments. The objects of the Board of Investment are (a) to stimulate the development, expansion and growth of the economy by promoting Mauritius as an international
investment, business and service centre;
(b) to promote and facilitate the development of all forms of investment and business activities;
(c) to formulate investment promotion policies and plans and marketing strategies and undertake promotion to attract
foreign and local investments; and
(d) to advise Government on strategies for investment policies, national investment marketing and investment after
care, economic and industrial planning and country image building.
2. ACCOUNTING POLICIES
The principal accounting policies adopted by the Board of Investment are listed below:-
2.1. Accounting convention
The financial statements have been prepared in accordance with the International Public Sector Accounting Standards
(IPSASs) issued by the International Public Sector Accounting Board (IPSASB) which is a Board of the International
Federation of Accountants Committee (IFAC).
2.2. Property, plant and equipment
Property, plant and equipment are stated at cost net of accumulated depreciation.
Depreciation is calculated on the straight-line basis at annual rates estimated to write off the cost of the assets less their
estimated residual values over their expected useful lives. The expected useful lives of Property, plant and equipment
are as follows:
Motor vehicles
5 years
Office furniture
10 years
Office equipment
7 years
Computer system & equipment 5 years
2.3. Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. Monetary
assets denominated in foreign currencies are translated using the rate of exchange ruling at the statement of financial
position date and gains or losses on translation are included in the statement of financial performance.
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
2.4. Revenue recognition
Government grants
Government grants received as financial support to the Board of Investment are recognized as income and matched
with the associated costs which the grant is intended to compensate. Grant used to finance the purchase of fixed
assets is amortized over the useful lives of the assets acquired.
2.5 Employee benefits
(i) Retirement benefits
The present value of any funded or unfunded defined benefit obligations is recognized in the statement of
financial position as a non-current liability after adjusting for the fair value of plan assets and any unrecognized
items based on annual assessment by the actuaries.
(ii) Other employee benefits
The present value of any other employee benefits is recognized in the statement of financial position as a
non-current liability.
2.6 Cash and cash equivalent
Cash and cash equivalents comprise cash at bank and in hand. The details are as follows:
1. Cash at bank – Local Bank – MUR 41,246,879
2. Cash at bank – State Bank of Mauritius Ltd – Mumbai – MUR 486,499 (INR 1,018,419)
3. Cash in hand – MUR 80,922
2.7 Accumulated Deficit
The Accumulated Deficit of MUR 17,364,060 as at 31 December 2014 is explained mainly by the recognition of
provisions for the employee benefits, namely Provisions for Accumulated Sick Leave (MUR 6,263,524), Accumulated
Unused Vacation Leave (MUR 7,596,072), Accumulated Passage Benefits (MUR 1,522,007) and Pension Obligations
(MUR 9,623,167).
2.8 Restated figures for the year ended 31 December 2013
The figures for the year ended 31 December 2013 have been restated. Funds amounting to MUR 4,184,860 received
from the National Resilience Fund (NRF) for refund under the SME Scheme for participation in International Fairs have
been recognized both as revenue and expenditure. An amount of MUR 17,281,787 also received from NRF for other
projects has been recognized as ‘Other Revenue’ instead of Government Grant.
2.9 Related Party transaction
There has not been any related party transaction for the year ended 31 December 2014.
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
3.
Year ending
Year ending
31 December 2014
31 December 2013
(Restated)
MUR
MUR
RECEIVABLES
Staff Loan
65,500
98,167
Deposits
1,047,855
989,287
Other receivables
1,775,599
558,044
Short term car loan
2,539,241
2,210,228
5,428,195
3,855,726
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
4.
Property, plant and equipment
Computer
Office
Equipment Equipment
Rs
Rs
Motor
Vehicles
Rs
Furniture
Computerisation
and Fittings
Rs
Rs
Total
Rs
Cost
At 1 January 2014
26,754,221
1,712,450
6,537,749 18,433,878
1,402,954
37,670
95,480
1,536,104
Written-off
(2,199,649)
(171,179)
(234,350)
(2,605,178)
At 31 December 2014
25,957,526
1,578,941
5,582,749 18,295,008
30,531,768
81,945,992
24,292,541
1,448,080
3,891,749 14,116,090
23,908,681
67,657,141
1,369,013
99,190
1,818,976
5,479,607
Additions
Disposal
30,531,768
(955,000)
83,970,066
(955,000)
Depreciation
At 1 January 2014
Charge for the period
Disposal
62
1,104,000
1,088,428
(955,000)
(955,000)
Written-off
(2,199,649)
(171,179)
(234,350)
At 31 December 2014
23,461,905
1,376,091
4,040,749 14,970,168
Carrying amount
at 31 December 2014
2,495,621
202,850
1,542,000
Carrying amount
at 31 December 2013
2,461,680
264,370
2,646,000
(2,605,178)
25,727,657
69,576,570
3,324,840
4,804,111
12,369,422
4,317,788
6,623,087
16,312,925
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
5.
Year ending
31 December 2014
31 December 2013
(Restated)
MUR
MUR
18,158,038
12,914,714
GOVERNMENT GRANT
Balance at beginning of year
Received during the year
63
Year ending
1,536,104
11,056,368
Transfer to income and expenditure account
(4,909,607)
(5,813,044)
Balance at end of period
14,784,535
18,158,038
Government Grant Short-term
3,722,823
4,614,087
Government Grant Long-term
11,061,712
13,543,951
14,784,535
18,158,038
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
6.
FINANCE LEASE LIABILITIES
Not later than one year
Later than one year and not later than five years
Later than five years
Present value of
Payments
Minimum lease payments
31.12.14
31.12.13
31.12.14
31.12.13
Rs
Rs
Rs
Rs
136,401
447,624
133,840
409,886
-
136,401
-
133,839
-
-
136,401
Less future finance charges
584,025
-
543,725
-
133,840
(40,300)
136,401
64
Minimum Lease
543,725
-
133,840
543,725
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
7. RETIREMENT BENEFIT OBLIGATIONS
The staff pension fund is wholly funded by the Board of Investment and is administered by State Insurance Company of Mauritius Ltd. The
amounts recognised in the statement of financial position at end of year are as follows:
Year ending
Year ending
31 December 2014
31 December 2013
(Restated)
MUR
MUR
Amounts recognised in statement of financial position at end of year:
Present value of funded obligation
(Fair value of plan assets)
Present value of unfunded obligation
Unrecognised actuarial gain/(loss)
48,646,656
46,574,119
(20,728,575)
(20,097,662)
27,918,081
26,476,457
-
-
(18,294,913)
(18,960,040)
9,623,168
7,516,417
Current service cost
1,638,645
1,730,319
Employee's Contribution
(918,596)
(1,005,916)
Liability recognised in statement of financial
Liability recognised in statement of financial position at end of year
Amounts recognised in statement of financial performance:
Fund expenses
Interest cost
(Expected return on plan assets)
Actuarial loss/(gain) recognised
Past service cost recognised
Total included in staff costs
49,984
50,269
3,725,930
3,108,397
(1,583,424)
(1,539,093)
572,105
315,538
-
-
3,484,644
2,659,514
At start of year
7,516,418
6,365,778
Total staff cost as above
3,484,644
2,659,514
(Actuarial reserves transferred in)
-
-
(Contributions paid by employer)
Movements in liability recognised in statement of financial position:
(1,377,894)
(1,508,875)
At end of year
9,623,168
7,516,417
Actual return on plan assets:
1,240,644
2,020,024
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
Year ending
Year ending
31 December 2014
31 December 2013
(Restated)
MUR
MUR
8 ACCUMULATED SURPLUS/(DEFICIT)
Balance at beginning of year
(Deficit)/Surplus for the period
Balance at end of year
(19,281,043)
(13,272,257)
1,916,983
(6,008,786)
(17,364,060)
(19,281,043)
183,227,800
157,397,000
(1,536,103)
(11,056,368)
9 RECURRENT GRANT
Amount received during the year
Less amount devoted to capital expenditure
Amount received for ICT Investment Forum
10 REVENUE FROM NON-EXCHANGE TRANSACTIONS
Processing fee - Storage Permit
5,000,000
181,691,697
151,340,632
742,500
558,000
742,500
558,000
11 OTHER REVENUE
Gain on disposal
Sundry receipts
140,500
9,699,908
7,926,448
Contribution from NRF
- Participation in International Fairs - SME
- Other Projects
Film Incentive Framework
3,686 , 970
4,184,860
9,378,406
17,281,787
43,963,113
66,868,897
66
29,393,095
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014 (Continued)
Year ending
31 December 2014
MUR
11 SALARIES AND EMPLOYEE BENEFITS
Basic salaries
Overtime
End of year bonus
Performance bonus
Gratuity
Pension
Travelling
Refund of leaves
Passage Benefits
Allowances
13 OTHER EXPENSES
Board fees
Rent
Office supplies
Telephone, fax and internet
Motor Vehicle expenses
Cleaning charges
Advertising
Insurance
General expenses
Professional fees
Electricity and water charges
Newspaper and publications
Postage
Repairs and maintenance
Receivables written-off
Loss on exchange
Loss on disposal
Interest charges
ICT Investment Forum
International Advisory Board Expenses
Training and seminars
14 INVESTMENT PROMOTION
Missions
Investment promotion tools
Seminars
Promotional advertising
Hospitality
Participation in International Fairs - SME
Film Incentive Framework
49,221,985
1,311,924
4,031,389
10,563,473
6,612,399
5, 176,522
7,241,891
1,560,402
2,336,821
3,890,819
91,947,625
1,900,000
9,692,092
2,608,477
4,186,296
1,559,607
279,291
42,346
263,809
4,470,446
14,392,140
2,177,049
72,782
23,792
1,243,222
2,027,528
37,738
2,010,282
46,986,897
27,746,517
3,698,621
30,577,282
3,105,790
305,594
3,686,970
43,963,113
113,083,887
Year ending
31 December 2013
(Restated)
MUR
47,997,400
1,305,883
3,967,889
5,569,233
3,987,452
6,925,157
1,516,049
2,466,728
4,193,919
77 , 929,710
1,917,000
10,655,523
3,245,164
4,105,445
1,505,012
208,999
174,840
305,285
2,283,242
5,825,663
2,345,113
86,615
40,283
1,376,910
550,599
47,135
55,000
78,425
5,000,000
1,052,469
1,382,260
42,240,982
37,091,816
5,348,594
19,075,518
4,762,592
149,441
4,184,860
70,612,821
67
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