Invest in Mauritius, easier in a month?

Foreign Direct Investment (FDI) has known a significant decrease since January 2011.  The big-thinkers and government analysts once again put the blame on the international financial context.  True to some extent, but not entirely.  Some of those experts have always been blaming the international economy for every of those problems we encounter – sometimes to justify their incompetence, sometimes to hide themselves.  Those who tried to relocate to Mauritius during the past months know it well: the problem lies within the authorities (not to mention the Board of Investment) and their ever-changing rules and regulations.  In 2006, when the Business Facilitation Act was introduced, the doors where wide open… and with a big bang they closed it in January this year.

Mauritius Island does not have any natural resource or wealth.  We are completely dependent on certain specific industries: tourism, financial services … and on our ambition to become a cyber-island (guess what this means!).  If we want to keep pace and give a chance to our ambitions, we need to give due credit to foreign capital and expertise.  The foreigner is not someone who just puts money in our economy and sit back in his country.  He needs to stay, in most cases, on the island and work along his money.  The residency permit becomes essential.  By systematically refusing to grand residency permits to investors, the Board of Investment has slowed down FDI.  Blunt but true!

In a month or so, the new Finance Minister will present his annual budget speech.  That’s where the major changes to business laws are brought, and that’s where the government gives a clear definition of its objectives.  The Finance Minister, Mr Xavier-Luc Duval (XLD) is a reputed Chartered accountant.  His competence cannot be disputed. I have had the opportunity to work in his firm some years ago and with him, we developed his ‘Expatriate Services department’.  I know that he understands the hopes and exigencies of foreigners relocating to Mauritius.  His statement in the press confirms it.  XLD is planning to streamline the actual system to facilitate and encourage foreign investment to Mauritius.  True that we have made impressive progress – I still remember those days when you needed an Attorney-At-Law to open your company – today this is a very simplified procedure.  So, I’d rather think that the adjustments need not target the business law segment, but rather the immigration law & rules where we have visibly regressed.  Regression is visible in the procedural aspects, the mentality of those civil-servants processing the application and those appraising the applications.  We have a real problem when the government is still requesting people to show birth certificates, as if the original passport presented was not enough.  What’s the point of showing a birth certificate in original?  They want to get acquainted to your dad and mom!?

XLD will be presenting his budget speech for the first time!  I know the guy will get out of it with brilliance, I know, I know him.  During the annual salary compensation tripartite, he was excellent.  The first Finance Minister I saw being applauded by the trade union representatives!  He knows better than me in what chaotic situation the Board of Investment is operating within.  He values FDI and foreign competencies.. so I guess he will come up with something fantastic.

I’m eagerly awaiting his speech and  I foresee some revolutionary measures that will boost Mauritius in the eyes on the international community of investors.  If we get foreign currencies flowing in again, we might be able to navigate out of trouble waters.  If we don’t, don’t ask me to pay more tax and pay for those glamorous Road shows that the Board of Investment officers enjoy year-in and year-out, during their ritual trip to Europe.  Inefficiency, waste of MY money and party – that’s what it’s all about.

If XLD is still, and he appears to be, the same person I’ve had the honor to work with, then people, we have some hope lying ahead!  

Good Luck Xavier…!