Lex Africa Guide 2012 Full - Afrer.org

Tax holiday of freeport operators which should end in 2013will now be carried forward indefi-nitely; andA zero per cent corporate tax as from 1 July 2013 willprovide more certainty to freeport operators and enhanceMauritius as a regional trade, marketing and distributionplatform. This measure will definitely give a strong boost tothe sector and help in further increasing cross border trade.Renewable Energy and the EnvironmentThe ’Maurice Ile Durable’ project (MID) is central to thedevelopment of Mauritius and which intends to become a leaderin renewable energies and sustainable development in theregion. According to the 2012 budget, A framework will be set upto enable production of ethanol for blending with gasoline.318million MUR will be allocated to the MID initiative, consistingof 118million MUR for renewable energy, 100million MUR forsolar water heaters and 100million MUR for the MID Fund.HealthcareMauritius has a fast growing healthcare and life sciencesindustry. Mauritius is on its way towards becoming a healthcare,wellness and medical outsourcing hub par excellence,supported by strong pharmaceutical, biotech and medicaldevices industries, and driven by high-end biomedical researchand innovation.InfrastructureMauritius has a well-developed network of internal and externalcommunications, an extensive and well-maintained roadinfrastructure, a modern and efficient port capable of berthingvessels up to 100 metres, a web of sea links and direct airconnections with several cities around the world, high band fibercable connectivity, a reliable fixed and mobile telephonenetwork, express courier service providers and freightforwarders, fully serviced business and industrial parks and afree port.WaterThe Central Water Authority (CWA) is responsible for the control,development and conservation of water resources and thetreatment and distribution of water to domestic, industrial andcommercial purposes throughout Mauritius. The CWA operatesunder the Ministry of Public Utilities. Potable water supplied bythe CWA is treated to meet norms met by the World HealthOrganisation (WHO) for drinkable water. The Ministry of Healthand Quality of Life conducts independent tests to ensure CWA’scompliance to the norms set by both the WHO and the Ministryof Environment. Water is maintained and supplied via reservoirs,dams, springs, rivers and Groundwater abstraction. Mauritius isfortunate to have abundant rain water.EnergyThe Central Electricity Board (CEB) is a parastatal body whollyowned by the Government and reports to the Ministry ofRenewable Energy and Public Utilities. The CEB’s business is to”prepare and carry out development schemes with the generalobject of promoting, coordinating and improving thegeneration, transmission, distribution and sale of electricity” inMauritius. The CEB produces around 40% of the country’s totalpower requirements from its 4 thermal power stations and 8hydroelectric plants. The remaining 60% is purchased fromIndependent Power Producers. Currently, the CEB is the soleorganisation responsible for the transmission, distribution andsupply of electricity to the population. The supply of electricity inMauritius is quite stable.TelecommunicationsEquipped with an excellent telecommunication network and agood pool of IT specialists, the use of the latest softwareproducts is made possible. Some important companies likeMicrosoft, Hewlett Packard have opened branches in Mauritius.Growth and employment in the IT sector is expected.TourismTourism contributes significantly to economic growth and hasbeen a key factor in the overall development of Mauritius. Thesector contributes approximately 18% to the country’s GDP. Inthe past two decades, tourist arrivals increased at an averageannual rate of 9 % with a corresponding increase of about 21% intourism receipts.Manufacturing SectorSince the setting up of the Export Processing Zone (EPZ), themanufacturing sector has attracted substantial foreign directinvestment (FDI) from various parts of the world namely Europe,USA, India, Hong Kong, Taiwan, China, Japan, Australia and SouthAfrica, amongst others. More than 800 manufacturingcompanies, out of which some 500 are export-oriented, producea wide variety of quality products such as textiles and apparel,light engineering products, precision plastics, electronics andelectrical components, jewellery and horology items, printedmaterials, toys, and miniature ship models, amongst others.Manufacturing is one of the main pillars of the economy andremains a major foreign exchange earner for Mauritius. Themanufacturing sector is now moving up the value chain with newplayers, both local and foreign, in new activities, with more jobopportunities for graduates and skilled labour. Activitiesrequiring specialized skills are developing in Mauritius, suchactivities include high precision engineering and productionprocesses on CNC machines.TextilesThe textile industry, forming a substantial part of themanufacturing sector, is one of the main pillars of the Mauritianeconomy. It has undergone many changes in its almost thirtyyears of existence. Equipped with a highly skilled labour forceand efficient management practices, Mauritius manufacturesproducts of excellence like Boss and Ralph Lauren for export tothe European Union and United States of America. Greatemphasis is laid on quality control. To face the present economicsituation, investments are being made in new technology withthe aim of making Mauritius a centre for capital-intensiveactivities such as spinning, weaving, design, marketing andlogistics.Financial SectorThe Mauritian financial sector has become, over recent years, amajor contributor to the Mauritian economy with financialintermediation accounting for around 10% of GDP in 2010. As anInternational Financial Centre (IFC), Mauritius is committed tocompliance with internationally agreed norms and has ensuredover the years that it is and is seen to be a reputable IFC. TheMauritian IFC has gained interna-tionalrecognition as a safe and trusted jurisdictionby the Organisation for Economic Cooperationand Development (OECD),Financial Action Task Force (FATF),International Organisation of Securities53