This article first appeared in Finwise Exchange.
Mahesh Doorgakant, Regional Head of CRM & Deputy Country Head at Apex Group in Mauritius, explains why Mauritius can be a natural choice for the domicile and administration of investment vehicles targeting Africa and Asia.
The Mauritius International Financial Centre (IFC) has recently gone past the 30 years’ milestone. In that relatively short time as compared to other IFCs, Mauritius has been able to position itself as a leading IFC and gateway for investment into India, Africa and Asia.
The island nation’s unique combination of strategic location, business-friendly environment, robust legal framework, and extensive tax treaty network has made it an at tractive jurisdiction for fund domiciliation and investment structuring. When combined with the capabilities of global financial service providers such as Apex Group, Mauritius becomes an even more powerful and effective hub for fund management and cross-border investment flows.
Mauritius is ranked first in Africa in terms of “Ease of Doing Business” and “Ease of Paying Taxes” according to the latest World Bank annual ratings (internationally, the country ranked 13th in the “Ease of Doing Business” and 5th in the “Ease of Paying Taxes” among 190 economies). Thanks to several advantages as listed below, Mauritius IFC has become home to international banks, legal firms, investment funds and managers and financial services providers such as Apex Group.
Benefits of Mauritius as a jurisdiction
The jurisdiction offers several compelling advantages:
- Strategic location between India, Africa and Asia, enabling it to serve as a regional investment hub.
- Strong legal and regulatory system, with the Financial Services Commission (FSC) ensuring international compliance and transparency.
- Political and economic stability, with a business-friendly government and strong judicial independence.
- Attractive tax regime: no capital gains tax, no withholding tax on dividends and interest, and an extensive network of Double Taxation Avoidance Agreements (DTAAs).
- Access to global markets through integration with COMESA, SADC, and the African Continental Free Trade Area (AfCFTA).
- Comprehensive Economic Cooperation and Partnership Agreement (CECPA) and free trade agreements with its major partners like India and China. These factors make Mauritius a natural choice for the domicile and administration of private equity, venture capital, hedge funds, infrastructure funds, and other investment vehicles targeting Africa and Asia.
Compliance with international standards
The IFC is known today as a jurisdiction of substance. It is fully compliant with international standards. It is actively participating in the latest and ongoing OECD Pillar 2 implementations and has initiated all the relevant changes under the Base Erosion Profit Shifting project (BEPS). It proactively takes all the necessary steps to be on the whitelists of the FATF, OECD and of the EU, which are fundamental to international business operations. Mauritius also has a robust and well-regulated banking system, with many international banks having their footprints in the country.
Leveraging Mauritius to drive positive change and growth
International players such as the Apex Group add another dimension to the jurisdiction. Apex Group is a single-source financial solutions provider dedicated to driving positive change while supporting the growth and ambitions of asset managers, allocators, financial institutions, and family offices around the world. Single-source solution means that clients can avail of services at each step of their growth.
Consider a private equity fund based in London aiming to invest in renewable energy projects in Kenya, Ghana, and Nigeria. By partnering with Apex Group and domiciling the fund in Mauritius, the fund can:
● Leverage Mauritius' tax treaties to reduce withholding taxes on dividends or interest from African subsidiaries.
● Use Apex Group’s on-the-ground expertise to maintain regulatory compliance in Mauritius.
● Provide professional investor reporting and ESG disclosures with Apex Group’s global tools.
● Access Apex Invest solutions to help in capital raising.
● Ensure governance and substance requirements are met via local directors and service teams.
This structure enhances both the fund’s operational efficiency and investor confidence, ultimately enabling better risk-adjusted returns.
As also mentioned above, Mauritius has pushed to ensure that it is seen as a jurisdiction of substance adhering to international standards set by the FATF, OECD, etc. It nevertheless continues to remain under scrutiny and also very often has to reaffirm itself away from the tag of being a ‘tax haven’. Apex Group mitigates these risks through its robust compliance infrastructure, commitment to transparency, and local presence. Their services ensure that fund structures are substance-compliant and globally defensible, reducing exposure to regulatory challenges.
Harnessing technology and multi-country collaboration
This piece will not be complete without mentioning technology. Apex Group remains at the forefront of technological advancements being implemented in the solutions provided to clients. Even as it established itself in the jurisdiction about 20 years ago, Apex Group was the pioneer in introducing, through Paxus, a global technology solution for the fund administration industry that enables automation across the full spectrum of fund administration tasks.
Apex Group has continued in that vein and brings to the table a wide range of solutions. These platforms include digital investor onboarding, advanced cybersecurity, seamless collaboration, and cloud-based risk and regulatory reporting for asset managers, allocators, and investors. These types of solutions are quite costly to develop and implement which is where international players make a difference.
International structures also involve multi-country collaboration. Apex Group, through its presence in all the key financial hubs, ensures that the Mauritius offer is enhanced. As an example, very often a private equity fund may need an SPV or other solutions in multiple countries – say a Mauritius fund will invest through a subsidiary in Jersey or Dubai or Bermuda. Apex Group, being present in all these places, facilitates the process with the manager being able to have all these and dealing only with the Apex Group team in Mauritius.
Mauritius continues to thrive as a leading funds gateway for India, Africa and Asia. When its jurisdictional advantages are paired with the operational strength of a global firm like Apex Group, fund managers gain access to a sophisticated, cost-effective and compliant platform for cross-border investments. Apex Group’s presence in, and support of, Mauritius enables seamless fund formation, administration, compliance, and reporting—all essential for today’s highly regulated and competitive investment landscape. For asset managers and institutional investors seeking a reliable launchpad into emerging markets, Mauritius—with Apex Group as a strategic partner—presents a compelling solution.
