Retrospect 2020

DECEMBERNOVEMBER 2020 2020 The Monthly ENewsletter December 2020 Retrospect 2020 The Montly E-Newsletter December 2020 NEWSLETTER Sanroy Seechurn Haliima Soreefan Zakir Caunhye Faraz Rojid Manager Manager Head of Department Head of Department Strategic Planning Communication, Country Doing Business Reforms Financial Services and Economic Development Branding & Digital Implementation & Marketing Monitoring Editorial- December 2020

Dear Readers, We have reached the end of a particularly tumultuous year, one that will forever remain entrenched in history books. Covid-19 has almost irrevocably dispelled all commitments, resolutions and expectations made at the start of the year, forcing every Government, business, and individual to not only review their plans for 2020, but also to have a much deeper introspection of the humdrum of daily routines.

Indeed, at the start of the year, few would have predicted closed shops and factories or empty streets, beaches and restaurants of this magnitude for such a prolonged time period. It has been a trying environment for humanity in the pursuit of professional and personal ambitions, with the damage done likely to last for years and even decades.

People from all walks of life have been affected, reminding us of the stark reality that misfortune and tragedy transcend all barriers and do not discriminate. For instance, for the first time in 70 years, UNICEF will have to feed hungry children in The difficult sanitary measures imposed the UK. The World Bank estimates that 88 million have undoubtedly caused, for a short people have already been pushed into poverty- a time-period, significant reduction in figure that could rise to 115 million, reversing economic activity. However, the lockdown decades of progress made in the fight against was a necessary sacrifice to prevent a poverty. complete economic collapse and today, except for tourism and related activities, This situation follows the drastic fall in the level of businesses are almost back to normal. business activity around the globe, affecting investment and trade alike, and unfortunately, The conjecture has also prompted a rethink trickle-down economics works better in reverse. in our way of doing things. E-commerce is on the rise while work-from-home has become Our nation has equally not been spared. However, a normality. The Economic Development our nation has always been able to adapt itself in Board (EDB) too has had to adapt its the face of adversity; a quality that has been functions and activities to meet the demands ingrained in our cultural DNA. of its stakeholders. In this special edition of the newsletter, we are providing some highlights of our main activities during the year - how the EDB has worked closely with stakeholders and contributed to policy during the crisis. Furthermore, we are showcasing some of our major achievements during the year in terms of project facilitation and progress made in improving the business environment. We have also worked extensively towards the development in new segments in nutraceuticals, medical devices, fintech and biotechnology amongst others.

Our estimates show that FDI inflows for 2020 will amount to some Rs 12 billion, lower than the Rs 20 billion we had forecasted during the year, mainly because of delays of implementation and investors reviewing certain of their business decisions to meet short-term requirements as a result of Covid 19. However, we remain confident that in 2021, we will bounce back stronger and that projects delayed will be realised, complementing new projects that we will facilitate.

For this to happen, we will need the collaboration of all our stakeholders, and I would like to assure you that the EDB team remains committed to help you bring your business and the economy to new heights.

I would like to end by thanking the Board, the Ag. CEO and all the staff of the EDB for their support throughout the year. To them, and all of our public and private stakeholders, I would like to wish you a Merry Christmas and Happy New Year 2021.

I hope that you and your families remain safe during these difficult times and that you are successful in all your endeavours.

Hemraj Ramnial, CSK Chairman Retrospect 2020

Amidst an unprecedented, unpredictable and uncertain economic backdrop marked by the COVID-19 pandemic, the Economic Development Board has been at the forefront of several initiatives throughout 2020 to facilitate projects, promote investment & trade as well as enhance the business climate. Some of EDB’s key achievements, realizations and results are highlighted hereunder.

Economic Dialogue - ‘Forum d’échanges Economic Dialogue-‘Forum d’échanges Mauritius-Seychelles Breakfast avec les associations du secteur privé’ avec les associations du secteur privé’ Business Meet

Official Launching of Hapag Prize Giving Ceremony for Child Trade Facilitation Reforms - Lloyd Artists - Expo 2020 Dubai Dissemination Workshop

Trade Facilitation Reforms_ Workshop on Broadening Dissemination Workshop Employment Opportunities Promoting and Facilitating Trade and Investment

Agro-Industry and Food Security The Ferney Agri-Hub is being developed to Indika Pharma Ltd is embarking in the ease the life of agri-entrepreneurs. Some 50 cultivation of plants over 20 acres for the to 100 ha of land are available on flexible production of nutraceuticals. The company is lease terms for agricultural development with envisaging the sale of around 64,000 boxes access to infrastructure to develop of nutraceutical products by 2023 which are agro-processing units, storage facilities, etc. expected to generate a revenue of MUR Medew Holdings Ltd on the other hand has 16,000,000. concluded a lease agreement for 120 ha of land for the establishment of a nursery and EDB is working in close collaboration with planting of 40,000 avocado (Persea business operators to accelerate the americana) trees. transformation of local agriculture through the adoption of smart and sustainable agri-food and tech practices. Promoting and Facilitating Trade and Investment

Healthcare & Lifesciences local investment amounting to the tune of Heavy focus has been laid on digitalization, nearly MUR 1.7 billion have been registered diversification, and innovation. The with the EDB and a fourth project has been promotional strategy has shifted towards completed during the course of the year. attracting institutions specialized in treatment of pathologies such as cancer, cardiovascular EDB is also developing a framework for diseases, endocrinology amongst others to telemedicine and a project for this technology cater for the growing needs of the population. driven activity is in the pipeline. With an aim to give a definite innovative touch to our 2 major private hospital projects specializing healthcare landscape, EDB is also in oncology are being facilitated and are spearheading the setting up of a framework currently in implementation stages. FDI for for stem cells. To streamline the current these projects amount to approximately MUR processes in the medical research sector, EDB 1.5B. A third private hospital project focusing has worked out a draft framework for on nephrology is also being facilitated and is registration of CROs and trials on medical currently in infancy stages. 3 luxury type devices. residential care home projects with Promoting and Facilitating Trade and Investment

Manufacturing (New Industries) In addition, 2020 also saw the launch of a Despite the overall slowdown in manufacturing Virtual Trade Promotion Platform regrouping activities, investors remained positive on the more than 50 high value-added Mauritian sector’s prospects in Mauritius. As such, Foreign manufacturers which provided a digital Direct Investment accounted for the sector in platform to operators to target new customers 2020 was valued at MUR 1.5 billion. based in geographically diverse regions spanning Africa to Asia. The year under review confirmed the upward trajectory of the manufacturing sector towards Estimates based on both new and existing high-tech, high complexity and circular manufacturing operations demonstrate that manufacturing activities. In 2020, key projects around 200 new jobs have been created in such as Pulptech Ltd (high precision tooling 2020. equipment) and GR Global (GPS components) have been implemented.

3 sector specific webinars targeting investors based in South Africa, USA and Asia were organized which yielded between 75 to 100 potential investment leads. The pandemic has led to a rethink of the concept of manufacturing in Mauritius. The aim is to bring several types of critical manufacturing activities in the country that would span three main sub sectors namely, pharmaceuticals; medical devices and high-tech/precision engineered components.

In light of the above, the guidelines for the setting up of pharmaceutical manufacturing entities have been finalized through the Pharmacy Board of Mauritius, which will open the doors for prospective companies in this field. In addition, a joint effort has been undertaken with the National Association of Automotive Components and Allied Manufacturers of South Africa, that will enable Mauritius to develop its credentials in the high tech/precision engineered components manufacturing segment. Promoting and Facilitating Trade and Investment

Manufacturing (Traditional) There is no doubt that the pandemic has tested the ingenuity, resilience, and flexibility of the global supply chain and in the process disrupt the sourcing from Mauritius. Nonetheless, in 2020, export manufacturing has become the most important foreign currency earner for Mauritius. Besides, the Q3-2020 has exports (traditional manufacturing) recorded +7% more than Q3-2019 evidencing a more resilient export manufacturing. Local investments amount to MUR 1.7 billion while FDI is estimated at MUR 71 million.

In terms of export and investment promotion, prior to the pandemic, EDB was active to position Mauritius operators & successfully participated at the Texworld International Fair in New York and Premiere Vision in Paris. A plenary session promoting investment in Mauritius was organized at the New York Chamber of Commerce. Furthermore, a dedicated Buyer-Seller Meeting was organized in Milan in view to secure new buyers who are looking to diversify their sourcing from Asia. Thereafter, physical interactions with Buyers have remained on hold due to the pandemic. In view not to lose track with markets, EDB has innovated in its marketing approach via several online events’ virtual shows, with digital platforms that has facilitated trade with Mauritius.

South Africa-All India-Positioning fashion Sourcing Mauritius as an investment hub for Africa

Italy- Virtual Showcasing of USA-Virtual Apparel Participation in products made Texworld from Mauritius.

UNIDO-ITPO South Africa-All Platform fashion Sourcing

Webinars were also organised on the following topics:

Your Most Reliable Sourcing Destination for Africa in collaboration with Association of US Apparel Buyers (USFIA) Industry 4.0 Masterclass to sell the merits of Mauritius as a reliable Supplier Strengthening partnership between Mauritius & South Africa for investment & trade Panel Discussion to position Mauritius as a strategic hub for Textile & Apparel in the Region Promoting and Facilitating Trade and Investment

Freeport The Mauritius Freeport was ranked 9th globally amongst the most promising free zones in the Annual Global Free Zones of the Year 2020 as a result of the buoyancy displayed in the sector with several Third Party and Private Freeport Developers having maintained several expansion plans during the year, amounting to some MUR 2.6 Billion of investments for infrastructural developments at the Port, Airport and Riche Terre industrial zone.

2 additional Freeport zones have been declared in respect of Mauritius Freeport Development Ltd and Mauri-China Freezone Development Ltd based at Riche Terre over an extent of 99,871 m2 of land with a projected investment around MUR 975 million and expected job creation of approximately 100 by 2021. Ocean economy and port activities In terms of bunkering activities, from 2018 to 2019, the export volumes increased by 13.6%. Currently, a project for increasing the bunker storage of a capacity of 50,000 MT in the port area is under way. This project which will require an investment of MUR 1 billion and has recorded FDI of Rs 72 million in 2019. Due to the pandemic, construction of the project has been halted and completion is scheduled for 2021.

With regards to the seafood hub’s continued development, Sapmer has registered a purse seiner for tuna fishing in Mauritius increasing the fleet from 2 to 3 purse seiners.

ICT /BPO In wake of the lockdown, the industry was prompt and acted swiftly to safeguard critical operations and mitigate the effects of business closure.

Hapag Lloyd, one of the world’s leading liner shipping companies has set up its Quality service Centre in Mauritius in January 2020. The company is engaged in the provision of high-end customer support services and employ around 120 people.

In 2020, Mauritius was ranked as the 1st country in Africa & 6th state after Bulgaria, Croatia, Lithuania, Poland and Serbia to ratify the modernised Convention 108 (Convention 108 +). Key highlights of 2020 include:

Webinar with CCIFM on Wednesday 24th June 2020 to address the attractiveness of Mauritius as an ideal location for start- ups to expand their footprint to the region and beyond.

EDB Participation in Africa Tech Summit- 4 – 6 February 2020 in Rwanda and in the panel discussion on the theme ‘Business Opportunities in the Indian Ocean’ along with representatives from Seychelles, Reunion and Comores

MOU signed with IT Association of South Africa to develop synergies and create complementarities for mutual benefits of businesses operating in both countries.

Webinar on ‘Shaping a new era of partnership with Cote D’Ivoire’ on 26 November 2020 in view of facilitating interregional innovation. Promoting and Facilitating Trade and Investment

Film Industry The Mauritian economy benefitted from a net Amidst the less favourable global economic inflow of approximately MUR 202 million spent by climate which has been heavily impacted by film productions to local service providers in the COVID-19 pandemic, the Mauritius film Mauritius, in terms of hotel accommodation, industry was significantly affected during the catering services, air travel, ground transport, second half of the financial year 2019/20. rental of equipment and other services. The film industry witnessed activities in the sector only during the first half of the year As far as government revenue is concerned, this 2019/20, while the second half of the year sector is estimated to have generated some MUR was inactive due to the COVID-19 lockdown. 34 million in terms of direct tax (VAT and Income Tax) collected from the above-mentioned 5 film During the year 2020, Mauritius has productions. attracted some 5 film productions It is worth mentioning that a total amount of MUR representing MUR 333 million spending in 90 million has been spent on remuneration of some Mauritius by film producers operating under 200 local cast and crew people working directly the Film Rebate Scheme. Among the 5 film with the film productions during the year 2020. productions, Mauritius is proud to have attracted two Netflix Original Productions In addition to local cast and crew, several local line from Spain (film title: AMOR DE MADRE) and production, accounting and audit companies were USA (film title: MAURITIUS-ESCAPE TO LOVE) involved in assisting and facilitating the film representing a total spending of some MUR productions in Mauritius. A total amount of some 325 million in Mauritius. MUR 40 million is estimated to have been spent towards these services consumed in the country Promoting and Facilitating Trade and Investment

The Mauritius International Financial Centre With regards to image building, in November The financial services sector currently 2019, Cabinet approved the setting up of a contributes to 11.8% of the GDP and employs Committee to look at image issues faced by our more than 15,000 professionals. Over the financial centre, and the Committee year, EDB has facilitated licences at the FSC recommended the institution of a Mauritius IFC (Investment Dealer, Investment Adviser, CIS website, amongst other initiatives. The EDB has Manager Licence, CIS PCC), listing on the Stock commissioned and worked on the website, and, Exchange of Mauritius and Occupation permits the first phase of the website is entirely ready, (for and on behalf of Global Business comprising repository of all legislations Operators). Early during the year, inward respective to the sector, direct links to the delegations, notably Weber Wentzel and regulators’ websites, an events page, a Discovery Life South Africa, were welcomed dedicated page for products and offerings, and for potential licensed activities. a financial services specific business directory, amongst others. Two additional projects have been determined by the National Regulatory Sandbox During the year, the EDB has worked in close Committee (NRSL) and been granted a collaboration with MSL India, the Ministry of sandbox licence: Redot.com and Tech Factory Financial Services and Good Governance and Ltd. the FSC for the PR Campaign run by MSL India in India. The re-branding of the Mauritius IFC In terms of promotion, the Financial Services was conducted following the ratification and the Cluster has moved towards digital promotion recognition of Mauritius as an eligible including webinars and e-meeting. In the jurisdiction for the registration as Category 1 aftermath of the EU blacklist, the EDB Foreign Portfolio Investors (FPI) by the Securities participated in several webinars. The EDB has and Exchange Board of India (SEBI). also been registered on the “Invest in Africa” Furthermore, on order to foster and further website to promote the Mauritius jurisdiction on enhance collaboration amongst stakeholders in the Investment Dashboard, created by the the financial services sector, a Trilateral MOU Africa Events Limited. between Bank of Mauritius (BOM) - Financial Services Commission (FSC) – Economic Development Board (EDB) was signed. Two other MOUs with the Bank of Mauritius and Mauritius Investment Corporation were also signed Real Estate & Hospitality Key projects materialised in 2020 The outlook in the sector remained positive in 2020 and developers are more optimistic for 2021 and beyond. In 2020, the EDB has facilitated several projects, with respect to clearances, building permits and licences, including mixed-use buildings, residential and commercial developments which are today under implementation or will start in 2021. 74 major development projects that started before Covid-19 are progressing. 81 projects that are in the pipeline.

Several significant property development projects have been implemented over the year in the following segments, which will generate a total investment (FDI and local) of MUR 30 billion in 2021.

1.Residential development (under PDS, IRS, RES and Apartment ground floor plus 2) Several luxurious residential real estate projects were under implementation in 2020 which represent total project value of MUR 10 billion. 30 new projects are finalised to move to the construction phase in 2021.

For the year 2020, a total of 400 applications were approved for the acquisition of residential property by non-citizens under IRS/RES/PDS and Apartment G+2 schemes totalling a value of MUR 9.2 billion.

2.Commercial Two (2) new commercial centres, at Trianon and Beau Plan, are under construction for a total development value of MUR 1.5 billion.

3.Office real estate Major office building complex such as Next One Ltd, Hyvec office, NG Tower, United Properties Ltd and Grit Head Office, with investments to the tune of MUR 3.2 billion for the next two years. 4.Smart Cities Ferney Technopole and Montebello will start major infrastructure works under the Smart City Scheme in 2021 representing a total investment value of MUR 750 million

5.Hotel projects MUR 5 billion will be injected in 3 hotel projects that will be completed by 2022 namely Atalian Global Services Ltd, LUX Melville and Suite Horizon Ltd.

6.Business and Industrial Park Riche Terre Business and Industrial Park The 325 arpents of State land at Riche Terre, leased to Landscope, is being developed. Some 45 plots of land have been leased to economic operators engaged in manufacturing activities, food processing, services of an industrial nature (including clean technology), logistics and warehousing, office and mixed-use commercial and activities related to service a commercial zone. The projects will entail investments to the tune of MUR 4.3 billion over the next 2 years with the creation of some 1500 jobs. Key Achievements

1.Smart City Projects The Economic Development Board has issued eleven (11) projects a Smart City Certificate for a total investment of MUR 225.9 billion. The projects will be implemented over a period of 20 years.

53 projects with investment value of around MUR 66 billion were facilitated at the High-Level Committee on Private Investment Project Facilitation so that permits, and licenses are granted in a timely manner.

Further to the 2020/2021 Budget Speech, the Non-citizens (Property Restriction) Act and the Regulations were amended in July 2020 to allow the eligible non-citizens to acquire one plot of serviced land to build an individual house within a Smart City project. As such, several Smart City projects have reviewed their master plan to integrate the parcelling of land projects and to explore this avenue of generating FDI namely Mont Choisy Smart City Ltd, Moka City and Uniciti Ltd.

Several Smart City projects are already under construction and some are in advanced implementation phases: i. Moka City Ltd- Implementation of the project has started with infrastructure works, construction of office buildings, residential units, and light industrial spaces. Some Rs 3.5 billion have already been invested in the project since the issue of the Certificate. Some of the key projects being developed in Moka City are Moka Residential, Bagatelle Motor City, Decathlon Store, US Embassy, Office Buildings and a mixed used neighbourhood at L’Avenir. ii. Uniciti Ltd- Implementation of the project started with major infrastructure works, construction and operation of pre-primary, primary, secondary, and tertiary facilities with their associated amenities like student housing and canteens have also been completed. Sports facilities, office buildings, and commercial spaces have also been developed and delivered. Some Rs 3.4 billion have been invested in the project since the issue of the Certificate. Some of the key projects being developed in Uniciti are extension of the secondary school facilities, additional commercial spaces, extension of the commercial mall, community and public spaces and the residential cluster of the smart city. iii. Mon Trésor Smart City Ltd has already invested some MUR 816 million on onsite infrastrucre and office building. Some forthcoming projects by Mon Tresor Smart City Ltd are the Business Park and Retail. iv. Cap Tamarin Ltd has invested some MUR 750 million in infrastructure, commercial mall, office spaces and residential units. Super U will launch its fourth hypermarket within Cap Tamarin on 15 December 2020. The development has necessitated a total investment of around MUR 1.2 billion and has created around 500 jobs. Some forthcoming projects by Cap Tamarin Ltd are Mixed-Use development, Schools, Sports Club and Retirement village. v. Beau Plan Smart City Ltd -Major infrastructure works are being implemented in Beau Plan Smart City to service the retail project (in construction), an office project and a business hotel (future construction projects) and the 1st phase of the residential serviced plots project. Beau Plan Smart City has invested approx. MUR 385 million in onsite infrastructure work of its Retail Park project, consisting of 59 shops and a food court spanning over a total extent of 12,500 m2. The total development cost of the retail project approximates MUR 917 million.

Infrastructure works for its two (2) major residential components (Mango Village & Les Muguets) have already started and is due for completion in early 2021. vi. Mauritius Jinfei Economic Trade and Cooperation Zone Co. Ltd- Some MUR 4 billion has already been invested in infrastructure, Jinfei Eden Garden, Business Centre, Apartments and Warehousing facilities which have been completed. Construction of a 5-star hotel, logistic and manufacturing facilities are under implementation. vii. Mont Choisy Smart City Ltd-Implementation of the smart city project kickstarted with the construction of a 1.5km road, known as Le Boulevard de Mont Choisy. The boulevard, inaugurated in August 2020, has been developed under a joint partnership initiative between Government and Mont Choisy Smart City Ltd. Some of the projects currently under implementation are the leisure centre, residential serviced plots and high-end residential units. viii. Hermes Properties Ltd- Launched in January 2020, the phase 1 of Hermes Properties Ltd is under construction and will include a shopping center, office towers and business hotel. 2.Urban Regeneration Scheme In June 2018, Government announced the introduction of a National Regeneration Programme, an initiative to regenerate and revitalize the central areas of our city, towns and larger villages. In 2020, the EDB has registered 5 companies as NRP developers in Port Louis for a total investment of MUR 2,873 million.

The Ministry of Public Infrastructure approved the proposal of Victoria Consortium on 8 December 2018 for the implementation of the project. This will entail an investment (development costs) of around MUR 1.955 billion and will create more than 300 jobs during construction. 3. Real Estate Bill Agent Authority Bill On 17 July 2020, the Government introduced the Real Estate Agent Authority Bill to boost the industry. The main objective of the Bill is to regulate and control the business activities of real estate agents, land promoters and property developers for a more secure and conducive real estate industry.

4.New Poles of Development-Premium Visa

Introduction of the Premium Travel Visa which aims at encouraging foreign nationals to come for a long stay as a tourist, retiree or a professional willing to come with his/her family and carry out his/her business or work remotely from Mauritius. The Premium Visa rules came into force on 16 November 2020. EDB developed an online application platform within the National Electronic Licensing System (NELS) for submissions of applications. The visa is issued electronically (eVisa) by the Passport and Immigration Office.

As of 07 December 2020, the Passport and Immigration Office received 118 applications, out of which 62 applications have been approved and issued. In terms of nationality of the applicants, France remains the main market with 21% followed by South Africa with 9% of applicants. Business Facilitation

To ease starting of businesses, the CBRD has been transformed into a One-Stop-Shop for payment of trade fees, registration of Ultimate Beneficial Owners, and VAT Registration.

Costs for construction permits have been brought down and procedures streamlined, including mandatory online applications.

Online registration of deeds has been made mandatory and online search facilities have been extended to notaries, banks, land surveyors, leasing companies, public utility agencies and local authorities.

A satellite office of the NLTA has been set up at the RGD for issue of ‘certificat de gage’ and horsepower certificate.

Amendments have been brought to the Companies Act, Insolvency Act and the Listing Rules for more protection to investors and creditors.

Cut-Off time for exports have been reduced for export containers and port charges decreased.

A Coordinated Border Management unit at Customs has been set up to expedite inspection and clearance of controlled goods. The unit comprises officials of public sector agencies and ministries involved in the import and export of controlled goods.

The coverage of institutions under the National Single Window has been extended, to facilitate import and export permitting. The policy for work and live has been significantly reviewed to extend the duration of an Occupation Permit from 3 to 10 years, except for professional, and that of Permanent Residence Permit from 10 to 20 years. In addition, the minimum investment criteria for Occupation Permit has been reviewed downwards.

The threshold to obtain residence permits upon acquisition of property has been reduced, while residence permit holders related to property acquisition have been exempted from the requirement of a work or occupation permit.

In addition to construction permits onboarded on NELS, the system now covers excise licenses issued by MRA and licenses for training institutions delivered by the MQA.

Judicial training on insolvency delivered to judges of the Supreme Court, by international judges. Projects in the pipeline

Setting up of a Business Obstacle Alert Mechanism for investors by the EDB.

Setting up of a Maritime Single Window for Vessel Clearance.

Setting up of an Integrated Single Window for Trade. Further development of licenses on NELS to cover Fire Certification, Registration and Licensing for Dangerous Chemicals, License to Trade in Bunker Fuels, Work Permit, Residence Permit, Permanent Residence Permit, Fishing Licenses, Registration of Pre-Primary Schools.

Further judicial training to judges on insolvency.

Reforms to promote movable asset-based lending and broaden access to finance.

A framework for Regulatory Impact Assessment for evidence-based rulemaking. Setting up of a Centralised KYC and Credit Score Services Agency by the Bank of Mauritius.

Major regulatory review for 4 industry sector: Land Use and Construction, Trade & logistics, Tourism, and Healthcare and Lifesciences. Economic Development

• Sector development and strategic planning Trade Promotion & Marketing Scheme The scheme has been extended to Canada, The EDB is spearheading the development of Middle East, Australia, Japan, Africa including the nutraceutical industry which will unfold new Madagascar other than EU & USA for a period of economic opportunities for landowners as two years ending 30 June 2022. Exporters will nutraceuticals attract greater margins than benefit from a refund of 60%, instead of 40%, on conventional foods. basic Air Freight costs (All-in prices).

In this respect, a roadmap/framework in Freight Rebate Scheme collaboration with University of Mauritius has The scheme has been extended to Madagascar – been developed for the large-scale Port of Toamasina (Tamatave) and South Africa development of the nutraceuticals and under the “Plan de Soutien aux Entreprises” to functional foods industry. In the report, 26 mitigate the adverse impact of the pandemic virus terrestrial plants and marine organisms have COVID-19. Exporters are refunded 25% of the been identified suitable for nutraceutical basic ocean freight costs for exports to Africa, product development in Mauritius. A priority Madagascar, Seychelles, Comoros Island, and list of 7 plants has been drawn up. These Reunion Island for container types 20ft and 40ft. plants are: Moringa, Papaya, Strawberry Guava, Tea, Pineapple, Pomegranate and Export Credit Insurance Scheme Noni. A searchable database with optimized The scheme has been extended to cover exports to and organised information delving into the all markets. The scheme provides a subsidy on the nutraceutical business has been created. The cost of Credit Guarantee Insurance Premium to database generates reports to allow for the eligible companies subscribing for Credit Insurance selection of land sites and appropriate Cover for their direct exports worldwide to nutraceutical crops. encourage them to take an insurance cover to secure trading and hence, boost up exports from The EDB participated extensively in the Mauritius. elaboration of the 'Industrial Policy and Strategic Plan 2020-2025' UNCTAD by Prof. Africa Warehouse Scheme Barnes. In addition, the EDB is working with the The Africa Warehousing Scheme has been World Bank on Transforming Strategic introduced as per Budget 2020/21 and is Planning for Economic Development with a operational since 12th October 2020 on a specific action plan and a monitoring and cost-sharing basis between the Government (60%) evaluation tool for the manufacturing sector. and the Private Sector (40%). The Government will support the first two years of operations of “Made Advocacy was also made to amend existing in Mauritius” warehouses set up in Tanzania. The and introduce new schemes to ensure the right scheme is implemented and managed by EDB and development of the sector amidst the funded by the Ministry of Finance, Economic pandemic: Planning and Development. To ease starting of businesses, the CBRD has been transformed into a One-Stop-Shop for payment of trade fees, registration of Ultimate Beneficial Owners, and VAT Registration.

Costs for construction permits have been brought down and procedures streamlined, including mandatory online applications.

A satellite office of the NLTA has been set up at the RGD for issue of ‘certificat de gage’ and horsepower certificate.

Amendments have been brought to the Companies Act, Insolvency Act and the Listing Rules for more protection to investors and creditors.

Cut-Off time for exports have been reduced for export containers and port charges decreased.

The coverage of institutions under the National Single Window has been extended, to facilitate import and export permitting.

E-commerce scheme EDB has worked in collaboration with the MRA, SLO and the Ministry of Finance and Economic Development for the drafting of the E-Commerce Scheme Regulations. The E-commerce scheme provides for 5 years tax holiday to companies wishing to domicile their platforms in Mauritius.

Smart Mauritius Innovative Development Scheme The Smart Mauritius Innovative Development Scheme (SMID) provides for VAT exemption on construction of building and related infrastructure and plant, machinery, equipment and materials to companies engaged in smart and innovative activities

Variable Capital Company and Insurance Wrapper Further to consultations with international investors, Ministries, and the regulatory bodies and in order to create more breadth and depth of the Mauritius IFC, the Variable Capital Company and Insurance Wrapper products have been introduced in the budget 2020/2021. Consolidating the innovation agenda Global outreach and the Africa strategy Mauritius was ranked 52nd in the Global Global Outreach Strategic Business Unit Innovation Index (GII) Report 2020, moving up (GOSBU) is responsible for spearheading EDB’s 30 places from 2019 and 1st in the Sub-Saharan Trade and Investment promotion strategy in key Region, confirming its strong commitment towards markets through on the ground presence of EDB a mindset of innovation. Overseas Officers in 12 different targeted countries which represented nearly 55 % of The industry is now engaged in the development domestic exports and 69 % of FDI inflows to of newer clusters such as Fintech, blockchain, Mauritius in 2019. cybersecurity, AI, IOT and E- Commerce. Several initiatives have been undertaken to implement & For the period Jan 2018 - Dec 2019, GOSBU’s promote new Government measures including the strategy has enabled the generation 4,321 Innovation Property Box Scheme (IP Box Scheme), foreign contacts, 248 leads and an inflow of Innovator’s Occupation Permit, e-Commerce MUR 4.3 Billion foreign direct investment. Scheme, Smart and Innovative Mauritius Otherwise, GOSBU initiated and engaged into Development Scheme (SIMD Scheme) and the a series of market development initiatives development of the Data Technology Park in through the organization of business forums Cote d’or. and business matchmaking events or through its participation to international investment forums The EDB issued its first e-Commerce certificate to such as the Tokyo International Conference on Inspecforless Ltd which is proposing an inspection African Development (TICAD7), Russia-Africa brokerage platform. A minimum capital Economic Forum and the UK Africa Investment investment of at least MUR 5 million is expected Summit. to be injected including a minimum operating expenditure of at least MUR 10 million per year and the recruitment of minimum 10 resident personnel. 20 market intelligence reports have been conducted in various targeted sectors. Such reports can assist exporters to gain real-time actionable insights, which can subsequently help them achieve new market development objectives.

This global pandemic has also compelled the GOSBU to review its strategy and resulting action plan for the year 2020 and beyond. Therefore, the cluster has adhered to new means of reaching out to the foreign business community, to ensure business continuity. Consequently, 9 webinars focused on the Financial Services, Manufacturing, Education, Creative Industry, Real Estate and Hospitality sectors have been organized by GOSBU in collaboration with relevant EDB clusters. Targeted countries included South Africa, India, Australia and Japan. The assistance of foreign economic development organizations, business associations and chambers of commerce have been solicited for the organization of the webinars which were attended by more than 700 participants and generated nearly 25 leads.

It is also in this context and spirit that GOSBU has engaged in collaborative framework with various business associations and chambers of commerce, through the signature of international cooperation agreements and MoUs. As at date, more than 15 cooperation agreements have been signed with various private and public organizations around the globe. The latest initiative is the signature of a collaborative MoU between the Economic Development Board and the Nelson Mandela Bay Business Chamber in Port Elizabeth – South Africa.

In line with EDB’s strategy to increase and foster trade in the region, the following initiatives were undertaken: • Online COMESA Platform: EDB has been appointed as focal point to manage the COMESA platform which gives visibility to products manufactured in the region. • Warehouses in Mozambique & Tanzania: EDB is providing operators with the opportunity to bring their products closer to clients in Africa.

Promoting zero waste and the circular economy In line with Government’s objective to improve waste recycling and management, the EDB is facilitating the deployment of a project for a zero-waste tuna industry in Mauritius. This cross functional project of renewable energy and the seafood industry aims at promoting the effluent from our tuna industry to produce electricity and fertilizer whilst minimizing odour emission. This project is being incepted at the cost of MUR 600 million and would be replicated to other large industries.

The EDB has also worked on the framework for greening up of our power sector with alternative sources of energy such as waste to energy. The EDB is also working with the MARENA in the inception of a wave to energy project pilot and a pilot base load wind project. These projects, upon materialisation would position Mauritius as a regional testing base for small scale renewable energy projects. DECEMBER 2020 The Monthly E Newsletter December 2020 NEWSLETTER Retrospect 2020