After a budget targeting more openness towards foreign investment and expertise, the trip by the minister of Finance, Rama Sithanen, accompanied by the Board of Investment, to South Africa appeared as a must. It was the first of a long list of business trips around the world to attract investors and businessmen to Mauritius. It trip seems to be a good omen for the future as the response has been very positive. Many delegations of South African firms are expected by the end of the year.

The minister of Finance believes that the measures to facilitate investment and the opening-up of the economy have been the main reasons for South Africa’s great interest in our country. After the adoption of the Finance Act and the Business Facilitation Act, foreign investors may feel safer coming to invest in Mauritius, as they know they will be most welcome. “We offered them an open platform of investment with low taxes. We insist a lot on the opening of the Mauritian economy to talents, ideas and expertise from abroad,” Rama Sithanen explained on his return from his trip.

Companies in many sectors seem to have been convinced by the minister’s arguments. The financial sector looks particularly interested. Actually the Standard Bank and Investec, two South African banks, are already present in the offshore sector in Mauritius and they have expressed the desire to extend their activities. A new one, FirstRand Merchant Bank has also shown interest in setting up business in Mauritius.

<B>Prestigious hotel group</B>

If the important presence of South African companies is something quite new for the country, the presence of South Africa in the Business Process Outsourcing (BPO) and hotel industry are nothing new. However, the arrival of the greatest group of the region is nothing less than great news for Mauritius.

Sun International may indeed be sending a delegation to Mauritius very soon. Its objective: to see the possibilities of setting up two brand new hotels. The signals sent by the budget have encouraged one of the most prestigious hotel groups in the world to come and invest here. Considered as the leader in Southern Africa, the presence of Sun International in Mauritius can only benefit the country in terms of a good image for top-class tourism. The group has actually already been present on Mauritian territory when it had the management contract for the hotels of Sun Resorts. But after Sol Kerzner took back his shares from the group, the five hotels went under the ‘One & Only’ brand and Sun International was no longer present on the island. This should soon no longer be the case.

As for the BPO sector, an operator is thinking of setting up a call centre of 500 seats in the near future – probably followed by other investments. The seafood hub is also considered as an important sector for future development. Some operators will soon be in Mauritius to estimate its potential.

After eight years without any business mission in South Africa, the minister of Finance wanted to make sure South African companies would think of Mauritius if they were to invest. The more so as South Africa has been investing a lot in other countries of the region over the last few years. Hence, there are great possibilities that the mission will prove fruitful. But South Africa is in fact only the beginning of a world tour for the Finance minister…

<B>Minister continues defending his budget</B>

In view of the increasing criticisms against the budget measures, Rama Sithanen continues to explain how beneficial the latter will be for the public in the future. According to him, the public has not fully understood the aim of these measures and the “demagogic campaign” led by the opposition has not helped. The minister insisted on two main measures that are causing controversy at the moment: income tax and the national residential property tax (NRPT). While the population finds them unfair, minister Sithanen keeps insisting that these reforms are clear and fair, especially for middle-income people. Only 6,000 people – at the top of the social ladder, according to the minister – will pay more taxes. All others will either pay less or not pay at all. As for the NRPT, the minister believes it is exactly the same. “90% of taxpayers are not concerned by the tax. And, among the 10% left, many will pay less income tax,” he claims.