The financial services sector, one of the strongest

In an article published in the Economie & Business supplement of 10 January 2007, and entitled ?Triangular Cooperation Mauritius-India-Africa: The Mauritian perspective?, Rabin Bhujun writes, with reference to the India-Mauritius tax treaty: ?? the only benefits that Mauritius has derived from this is the setting up of few offshore management companies and banks that employ, at best, around 50 Mauritian nationals for such activities.?

This is factually incorrect and misleading. A survey, conducted by the industry a few weeks ago, has revealed that the Global Business directly employs in excess of a 1000 people (over 20 times what is stated in the article). More importantly, these are mainly Mauritian graduates or professionals, who are highly skilled for the demands of a specialised function, which needs to compete with other global jurisdictions in exceeding the expectations of the international clients.

The Financial Services Sector is an important pillar to the economy. It gives Mauritius an important role in the global financial services sector and, importantly, has brought about a much-needed change in work ethics and culture to the country. In fact, it is estimated that for the current year, the sector will bring approximately Rs 10 billion to our economy, representing about 4% of GDP. The Financial Services sector has grown by 6.7% over the past year, making it one of the strongest of our economy. The sector benefits not only Management Companies and Banks, but also local accounting, auditing and tax advisory firms as well as corporate lawyers and notaries.

The government, through taxes and fees, also perceives revenue from the sector. There are 8000-odd GBL1 companies; some individual companies have been known to pay upwards of Rs 35 million in corporate tax. It is estimated that the total taxes collected from the sector is in excess of Rs 1 billion. The FSC and Registrar of Companies together receive at least Rs 619 million in fees.

In addition, there are indirect contributions made by the sector to the economy and assessing its multiplier effect is difficult. The travel and hotel industries benefit greatly from visiting businessmen attending regular board meetings in Mauritius. The share of income from the tourist industry attributable to the Global Business Sector has been estimated at over Rs 1 billion for the year gone by.

Numerous Mauritian companies also thrive on providing the sector with computer hardware and software, telecommunications, stationery, furniture, large offices for rent and a host of other services.

The above facts and figures clearly demonstrate that the Global Business sector is a thriving and growing sector of our economy. It is to date one of the largest employers of graduates and professionals. Its importance to the national economy should not be underestimated. Since this particular article was written for the benefit of the Friedrich Ebert Foundation, it would be desirable that the records be put right by the author at the level of the Foundation as well.

Daniel ESSOO Secretary General of the Association of Offshore Management Companies On behalf of representatives of the Global Business industry.