The reputation of Mauritius as a world-class tourist destination is not questionable. Mauritians’ sense of hospitality is legendary and is the foundation of the success of tourism industry. The excuse of innovation and development gradually eroded the authenticity of the destination, creeping slowly over the lush vegetation and the natural warmth of the population, replacing them with a Business-oriented environment. We all know that, under the excuse of Eco-tourism, we are now heading inland with more and more touristic establishments in mountain slopes and sugar cane fields. But the real deal is that our turquoise lagoons and beaches are exhausted; no more left for hotels. Well, sorry for this introduction, but it had to be said by someone. Let us get to the real subject matter.

Between tourism and business (or a new home), the difference is massive. The island is not a total paradise. There are dangers and red-lines that one should not cross. Not that the island is hostile, but it is not to be taken as an under-developed country where people are naïve. Nothing to conquer here, anymore. Gone are the days when a non-Mauritian would attract all attention (and care) by just announcing a stupid idea as brilliant. Today, we are (almost) at par with developed countries. If you really have a brilliant idea, it will be appreciated to what it is worth. 

Official documentation and websites probably show a different perspective than what is mentioned above. There are different investment and residency schemes that lead to believe that Mauritius has everything to offer. The Business Facilitation Act, as evocative as a name could be, was enacted in 2001 together a new Companies Act and the creation of Economic Development Board (then named Board of Investment) to purposely trigger foreign investment and immigration. The country operates a selective immigration strategy which is based on capital (money) or competence. Residency schemes are based on a 10-year residence, renewable indefinitely as long as the holder meets the required revenue requirements. Such schemes include residency for spouse, children and direct parents of the main Permit holder. Interesting !

To qualify for an Investor occupation permit, for example, one needs to show an investment of at least USD50,000 and propose a business that can earn at least MUR4 million as annual turnover as from the third anniversary of the residency permit. To get a residency permit based on employment, applicants need to be recruited by a locally registered entity, offering a monthly salary of not less than Rs60,000 (Rs30,000 if in IT sector). Self-employed are categorized as those in liberal professions (Doctors, lawyers, consultants, etc.) who are able to show an investment of USD35,000 and generate revenues of Rs800,000 for each of first two years ; and thereafter Rs1,200,000 per year. Retired permits are for those aged 50 or more and capable of transferring at least USD18,000 annually for their own (and family) living expenses. As you can see, all is well defined and operated by the Economic Development Board (EDB), under the aegis of the Prime Minister’s Office and the Passport & Immigration Office.

The technical part as laid out above is not the only factor to be considered in a relocation project.

The real question is: what does the island offer in terms of life, business or employment experience?What life (or business) experience does Mauritius offers. What does it offer as more interesting than your actual life?

All is a matter of expectations. There is a need to shake-off the tourist mind that probably gives the first impression. Living and holidaying are two different things. No country is perfect. Bear in mind that expatriation or relocation implies losing (a large) part of acquired habits, culture and way of life. Understanding this crucial element helps. One cannot aspire to his/her usual life while relocating to a different country. Adaptability is key.

There is a large amount of effort, patience and perseverance required to attain any objective. Even if the idea is brilliant, one still needs to walk the maize, race the offices and obey to all conditions. Time frame: do not even ask for that ; it will happen, just know this. An advice that I always give : adjust your biological and psychological clock.

We are an island.  Pro activeness is still a very vague word. No news does not mean good news though. You can understand that a process is well directed, nearing a positive conclusion and then you get a negative response, without any explication. Now chase the explanation.

The easiest procedure is probably incorporation of a company. Most of the procedure is online based, with user-friendly interface. However, once you embark on it, many untold stories will reveal themselves, triggering the most nail-biting and frustrating experience. This, then becomes your first glimpse into the ‘published’ and the ‘real’ sides of things. The type of documents to upload, the format, fields to fill-in, generate forms from the system and re-uploading them; it might take you days to get it right. In between, hardly anyone at the other end of your phone calls or emails requesting assistance.

Once the company is registered, the next step would be opening a bank account. This Mission Impossible would make Tom Cruise blush. First thing to understand: you are a suspect, not a potential client. Over and above documents in a certain specific format and content (even if not available in your country), and several delicate questions pertaining to your personal life , you are not guaranteed a positive outcome. More often the answer is ‘Our committee is considering your application’. The ‘committee’ is a ghost no one has seen. While you wait for months, no one will ever inform you of precise issues (if there were). If you are lucky, you will have a bank account at the end of the wait, else a blunt refusal with no other explanations. I have written several articles on this subject. The bank account is an inevitable step required for business and relocation project. Residency permits (except employment permits) require the transfer of funds to Mauritius. Most banks seem not to understand this. Some even require the residency permit to open account, while a permit requires the account to be opened and funded. Each bank has its own banking law….

Now that the above stages are completed, the business is ready to operate. The curtain will be lifted to another experience: the work culture of Mauritians. Good to note that there is no Employment law, but Employee rights law. Employee is favored over employment. Based on this you can expect any employee to use all his/her sick leaves for the year as this is rather assimilated to an unexpected leave without necessity to give prior notice to the employer. An employee is often more documented and versed in laws. More so, many of them are either acquainted to a labor inspector or have close relationship through previous incidents. If you are a non-Mauritian, expect threats like deportation. These are realities one must deal with. Not surprising to see so many expatriates on the island. In certain restaurants, Mauritians are not visible as employees. Bangladeshis and Nepalese have crowded the place. It is not only a matter of salaries or work conditions (as often vouched by Trade unionists, stuck in the nostalgia of the 80s era). We cannot generalize but can say this is more or less the general situation.

This is also the reason why so many employers are now hiring external HR and management offices to handle their affairs, as compared to having an internal department for these issues (HR, accounting, management, etc.). External offices are specialized professionals operating with their own team (therefore more resources), avoiding internal conflict of interest and complicity.

On other side, Mauritians are highly educated in formal sectors such as finance, wealth management, legal, insurance, banking, technology, engineering and communications – to name a few. There is an immense pool of expertise, backed up by years of local and international experience. This might probably explain the evolution of the island in these sectors, which are new as strategic economic development. The transformation from an agriculture-based economy to these sectors is eloquent. We successively and successfully moved from sugarcane production, to tourism, then textiles and Free-port, followed by ICT, financial services and continuing the evolution to keep pace with the changing global economic parameters. Not to neglect: we are all bilingual, at minimum both written and spoken.

Connectivity is not questionable as flights, maritime lines or communication are all properly established and operating. We are hyper connected to the world! This is a considerable advantage for those engaged on international business scene. Add to this, the absence of foreign exchange control, meaning that money is freely moveable albeit with proper observation of applicable rules and regulations. There are different legislation which provide the appropriate legal framework. International commerce and business are also favored by the modern infrastructure available through the port (and Freeport zone) catering for a world-class warehousing and handling of goods. The biggest names are on the island : Maersk, CMA CGM, Hapag-Lloyd, and others.

In contrast, the domestic market is quite limited in size. With a population nearing 1,200,000 heads, it is difficult to envisage a large size business in the retail environment. Mid or small size businesses can easily sustain their presence if they have a focused strategy, adapted to the realities of the domestic market. Some have been very successful while many others have crashed. Mr Price, Game and even Sir Richard Branson could not survive here.

I can write an Encyclopedia on Mauritius, but I’ll limit myself to this article, hoping that it gives an insight into the various untold stories. Despite this being my core business, I do not aggressively sell Mauritius as your ideal destination. At Gibson & Hills we prefer to tell you truths (even the bitter ones) so you are prepared to take the final leap ; and if you do, we will be here to hold your hands.

So yes, it is interesting to invest in Mauritius, but you need to prepare yourself financially, morally and physically. Consult and take professional advice where you can.

(c) http://www.gibsonandhills.com