Board of Investment Analysis : remarkable results for Mauritius

In its November Newsletter, Managing Director Ken Poonoosamy describes the year 2017 as a year with all its bundle of shocks and surprises, knotting together a hope for a better future, as main economic indicators have finally stabilized following years of high volatility. He stated that the year 2017 has seen some innovative policy-making in this respect, based on the principle that innovation should not be constrained, but rather be guided.

“BOI has, thus, during the year, concentrated its efforts in sector development initiatives, given the constant need to reinvent our economic structure. A workshop on Marine Biotechnology, for instance, was organized to understand how best we can use our resources from the vast EEZ to develop niche products. The improvement of the business environment was also a key action area for the Government.

Following several years of poor performance in the World Bank Doing Business Report, the hemorrhage came to a stop following an aggressive operation by the BOI to eliminate obsolete administrative bottlenecks. The result was remarkable, with Mauritius being ranked 25th in the 2018 World Bank Doing Business Report.”

Below, a small analysis of different sectors has been summarized as illustrated by BOI in its newsletter:

ICT/BPO

The ICT/BPO sector is reinventing itself, and BOI has played an intrinsic role in attracting new players into the market as well as assisting existing companies to expand their activities.

Ocean economy

During the year, there has been the establishment of an in-lagoon aquaculture project, the registration of 9 new long line fishing vessels as well as the establishment of the Bourbon Group with future operations in the oil and gas support sector specialised in vessel operations (ROVs, search vessels, drill vessels). On the other hand, contracts for exploration of the maritime zone (JMA and EEZ) for hydrocarbons have been provided to 7 respondents following the Expression of Interest launched by the Government.

Renewable energy

Five new renewable energy projects secured an Energy Purchase Agreement and are under pre-implementation phases. In addition, BOI is involved in the facilitation for licenses for the Deep Ocean Water Application project, which is at the EIA stage.

Real estate

Three smart city projects, namely Uniciti, Cap Tamarin and Mon Trésor, have been granted all the necessary permits and clearances.

Film industry

12 projects, representing a total Qualified Production Expenditure of MUR 927.9 million, were realised under the Film Rebate Scheme in 2017. An estimated number of 720 local crew and 400 local cast (supporting and leading cast & extras) have been employed on the production set. One of the major projects included the shooting of the movie ‘Serenity’ which is being produced by IM Global, the leading Hollywood film finance and production company.

Healthcare

Investment has been mainly from local sources, amounting to approximately MUR 200 million, and primarily in residential care home/nursing home projects such as Les Nenuphars and Nemorin Residential Care Home.  In addition, Axonova, a biotech company involved in research and pre-clinical trials, is currently being set up at Ferney.

Manufacturing

During the year 2017, several important manufacturing projects in the areas of adhesives, specialty nets, construction bars (steel & aluminum), stationery, textiles (uniform & workwear) and flexible packaging have materialised.  Empak and Optsun are some of those companies that have opted to establish their operations in Mauritius.

Africa strategy

The Africa Centre of Excellence has also been involved in a number of initiatives to position Mauritius as a hub for the region. Four companies have set up their Regional Headquarters in Mauritius while one has set up a manufacturing plant in Mauritius. In addition, following the missions organized with the private sector, four projects were secured by local companies.