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The ICT Business Forum held by the Economic Development Board (EDB) – in collaboration with the Ministry of Information Technology, Communication and Innovation – at Dubai Expo 2020 saw an increased visibility for Mauritius vis-à-vis United Arab Emirates (UAE) stakeholders. Among the main partnerships that emanated from the sidelines of this event are the signing of three Memoranda of Understanding (MoUs) between the EDB and the following:

– the Dubai Chamber of Commerce and Industry;
– the Abu Dhabi Chamber of Commerce and Industry; and
– the Abu Dhabi Fund for Development (ADFD).

The EDB aims to achieve the following with the signing of the two MoUs with the Chambers of Commerce:

– establish a framework for developing stronger business relations between the EDB and the United Arab Emirates Chambers of Commerce and Industry;
– strengthen trade ties between the two countries and create new channels of business exchanges; and
– strengthen institutional relations and capacity building through mutual cooperation.

With regard to the MoU with the ADFD, the EDB will aim to lay the groundwork to encourage the ADFD to invest in companies in Mauritius either through full ownership or through equity sharing in partnership with public or private Mauritian companies as a means to promote economic development and create job opportunities across various sectors.

With a view to providing a proper regulatory framework for licensed Securities Exchanges and Clearing and Settlement Facilities, the Minister of Financial Services and Good Governance has communicated on 21 January 2022 its decision to promulgate the Stock Exchange (Brokerage) (Amendment) Regulations 2022 (the “Regulations”), under the Securities (Amendment) Act 2021.

Presently, there is more than one Securities Exchange with each one having its own licensed Clearing and Settlement Facility to clear and settle transactions. The amendments brought forward by the Financial Services Commission (FSC) to the Stock Exchange (Brokerage) Regulations will implement a fairer distribution process of the brokerage fees for securities transactions.

The Regulations further provide for each investment dealer to determine its own brokerage fee and the FSC Rules relating to Brokerage Fees shall be amended to reflect the above.

In a communique released on 28 December 2021, the Financial Services Commission (FSC) informed concerned stakeholders that it is now officially recognised as the sole National Numbering Agency (“NNA”) for Mauritius, further to having officially integrated the Association of National Numbering Agencies (“ANNA”).

The FSC is now able to have proper oversight on the issue of International Securities Identification Numbers (ISINs) in Mauritius and as part of its supervisory plan, the institution will be allowing local licensed and regulated clearing and settlement facilities to charge the fee for each ISIN issued on its behalf. More information on the issue of ISINs will be communicated by the FSC in a separate Circular Letter.

The current fees for ISIN issuance has been set at USD 600 per ISIN, and this may be subject to revision.

You can access the full communique from the FSC here

In a correspondence dated 17 January 2022, the Financial Services Commission (FSC) confirmed that, effective 1 January 2022, only holders of / applicants for a Global Business Licence (GBL) wishing to avail of a preferential tax advantage should demonstrate that their Core Income Generating Activities (CIGA) are / will be carried out, in or from Mauritius at all times.

In case you have missed our news release on the above Policy Stand from the FSC, you can access it here

Effective since 1 January 2022, the new ‘Pay As You Earn’ scheme, introduced by the Seychelles Revenue Commission (SRC), is deemed to provide small businesses falling under the Presumptive Tax Regime – i.e. businesses having less that R1 million annual turnover – more leeway in meeting their tax requirements.

Currently a pilot project, the ‘Pay As You Earn’ scheme will benefit some 10,100 businesses which mainly form part of the informal sector and will aim to encourage them to make payments in regular installments using their preferred mode so as to reduce the financial burden of having a bulk sum to pay at the end of the tax year.

With regard to advanced payment, taxpayers will be required to fill in the ‘Advance Payment Business Activity Statement (BAS)’ when effecting payment to facilitate reconciliation. It is to be noted that no penalty will apply for business availing advance payment.

During a meeting held on 17 January 2022, Nadia Jeremie – Revenue Section manager at the SRC – clarified that the scheme does not cater for ‘specified businesses’ which are using the Deduction at Source (DAS) booklet as well as businesses that are currently paying the monthly ‘Pay as You Go (PAYG) under the normal tax regime

As travel picks up steam in 2022, Henley and Partners presents the case for global mobility limitations across 227 travel destinations, citing ‘tests, vaccine certification, and at times mandatory quarantines’ as the main reasons which explain slow travel recovery, in its Global Mobility Index for the year, the first in a series of its quarterly reports.

Seychelles retains its position as the leading country in Africa at the 28^th place globally (Q4 2021: 29^th), followed closely by Mauritius which has shot to the 31^st spot from its 33^rd position in the 2021 Q4 Index. These rankings certify the countries’ statuses as the most travel friendly passports on the continent, with Seychelles and Mauritius providing visa-free/visa-on arrival access to 152 and 146 destinations respectively.

The Index was put together from data from the International Air Transport Association (IATA) and the Henley & Partners’ research team.

You can access the full report here

^{We communicated on the Global Mobility Q4 2021 report in our December news release. Have a look at it here}

Transparency International’s 2021 Corruption Perceptions Index (CPI) came out on 25 January 2022, and provided us with a snapshot of the perceived level of corruption in public sectors across 180 countries and territories. Through a scale of 0 to 100 – 0 being highly corrupt and 100 being clean -, the non-profit organization concluded on a stagnation for this year’s ranking, with the majority of the jurisdictions having made no significant progress in addressing their corruption concerns.

Despite this less than thrilling update, for the fourth consecutive year, Seychelles has demarcated itself as the least corrupt country in Sub-Saharan Africa, with a score of 70 (2020 score: 66), and takes the 23^rd spot globally. The steady rise in performance on the CPI over the years is attributed to substantial open government and anti-corruption reforms; however, the country needs to undertake more stringent measures with regard to its financial secrecy issues.

Rank-wise, Mauritius has recorded its best performance in the CPI 2021, taking the fourth spot in the Sub-Saharan region and the 49^th position on the global ranking (2020: 52^nd worldwide). Mauritius totalled a score of 54 for 2021– one point above its 2020 score – attesting progress made in its fight against corruption.

Cabo Verde (58), Botswana (55) and Rwanda (53) are the other top five scorers in the Sub-Saharan region.

Access the full report from Transparency International here

On 19 November 2021, Fitch Ratings (“Fitch”) upgraded Seychelles’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B+’ from ‘B’ with a Stable Outlook. We recall, back in May 2021, that Fitch deemed the ‘B’ rating appropriate for Seychelles given its high level of public and external indebtedness and its vulnerability to economic shocks¹.

This improved rating is telling of the positive economic rebound faced by the country following an upsurge in tourism arrival. Additionally, swift vaccination rollout, a less stringent policy for inbound tourists and the emergence of new tourist markets (Russia, Israel, UAE and Saudi Arabia)
account for this recovery. As Seychelles amasses prominence for its strong governance, development and good record of public debt reduction pre-pandemic, Fitch is already projecting real GDP growth to reach 6.0% in 2021, peak at 6.8% in 2022 and moderate to 4.8% in 2023.

Read the full commentary from Fitch Ratings here

¹Access our past news release on Seychelles’ ‘B’ rating here

In light of the recent detection of the highly transmissible coronavirus variant – Omicron – in South Africa and neighbouring countries, the Mauritian Government announced its decision to close borders to travellers from South Africa, Namibia, Lesotho, Botswana, Eswatini and Zimbabwe, effective since Monday 29 November 2021¹.

As such, restrictions on inbound flights from the above-mentioned countries are in place until further notice. We endeavour to keep you informed of further development in due course. In the meantime, should you have any questions, please send us an e-mail at info@intercontinentaltrust.com

On 8^th December 2021, the French government has also taken the decision to remove Mauritius from its list of “scarlet” destinations, therefore once again making travelling to Mauritius from France possible for vaccinated visitors². However, restrictions will still apply to non-vaccinated travellers.

¹ If you wish to read our news release on the above, please click here

² Vaccinated with an EMA approved vaccine (Pfizer / Comirnaty, Moderna, AstraZeneca / Vaxzeria / Covishield, Janssen)

With nations charting their way in and out of an undisturbed pandemic, the latest Legatum Prosperity Index (the “Index”), released in October 2021, concluded once again on prosperity stalling across the World. The Index, which serves as a guide in assessing economic and social wellbeing across 167 nations, cites the ‘health and economic consequences of the COVID-19 pandemic’ as well as a weakening of the core features that underpin prosperity as reasons for this stagnation.

Mauritius ranked 45^th worldwide (2020 rank: 44^th ) and maintained the top spot in the Sub-Saharan region in the 2021 Index. Classifying in the top 50 for seven of the Index’s 12 pillars, the country has done exceptionally well across three areas, namely Governance, Social Capital and
Investment Environment. It is also to be noted that despite the Sub-Saharan region being the least prosperous, it was the only other region – besides Eastern Europe – which recorded an improvement in 2021.

Access the full report from the Legatum Institute here