Standard Bank has broadened its offshore services in Mauritius to cater to family businesses and corporations.
This expansion aims to enhance investment and trading opportunities for these entities.
Mauritius is rapidly establishing itself as a preferred cross-border investment hub for African businesses, according to the bank.
By extending its Mauritius offshore offerings, which previously included Jersey and Isle of Man, Standard Bank now provides additional benefits for businesses across Sub-Saharan Africa.
The bank has introduced a dedicated Business and Commercial Banking service to support this expansion.
Tunde Macaulay, head of Africa regions and offshore for Standard Bank Business and Commercial Banking, said: “Our clients will be able to enjoy the full benefits of operating from an IFC [International Finance Centre] that facilitates international activity and operates under a strong regulatory framework. Mauritius also offers the advantage of political and economic stability, a factor that has helped establish it as a business and cross-border investment hub of choice for Africa.”
Macaulay also pointed to the strategic benefits of Mauritius’s location, which is conveniently close to major African centres and provides visa-free access for many countries.
Key advantages of this expansion noted by Standard Bank include:
Favourable Procurement Terms: Companies sourcing materials internationally often receive better terms when based in stable, recognized IFC jurisdictions.
Cost-Effective Procurement Structures: Mauritius facilitates the establishment of procurement structures, helping African businesses that import large quantities of goods to do so more cost-effectively.
Centralised Treasury Functions: Mauritius allows for the centralization of treasury functions and consolidation of shareholding structures, streamlining operations across multiple jurisdictions in Africa.
“For large family businesses and local corporations that we serve across our 20 markets in Africa, operating through the Mauritian IFC opens up investment and trading opportunities that leverage its business-friendly environment, robust infrastructure, skilled workforce, competitive tax rates, and well-regulated banking sector,” Macaulay noted.
Though Mauritius is renowned as a vacation destination, it is also becoming increasingly attractive to businesses. It is an investor-friendly gateway to Africa and the Middle East, with the capability to establish a business within two weeks or less.
Standard Bank believes that this move will support businesses in Mauritius and contribute to the growth of the African market.
“Mauritius’s stable macroeconomic environment contrasts with the current challenges facing several sub-Saharan countries, such as currency devaluations, inflationary pressures, and liquidity issues, which have impacted our clients in various sectors,” Macaulay added.
Interest growing
Interest in Mauritius as a relocation destination is growing annually due to the year-round sunshine, tranquil environment, efficient tax system and ever-expanding services that make Mauritius a sought-after alternative to living in a city.
In 2023/4 Mauritius has seen a significant increase of 16% in residential property sales volumes (units) with 2024/5 set to see additional growth in unit sales, said Jonathan Tagg, director of Pam Golding Properties Mauritius.
“Such is the demand from the South African buyers that over 30 units were sold in Phase 3 (already handed over) and Phase 4 (currently under construction) of the La Réserve precinct on Mont Choisy Golf & Beach Estate. Phase 5, where apartments range from USD 599 000 to USD 988 000 with construction now underway, has 19 buyers from South Africa.
Global purchasers in this estate hail from France and other European countries such as Belgium, Germany, UK, Switzerland, Sweden and Luxembourg.
To date Pam Golding Properties has sold 78 units in Mont Choisy La Réserve at a total value of approximately $61.2 million.
Completed in 2017, Phases 1 and 2 of the estate have a large community of South African and European owners and tenants who find the central location and community environment suits their requirements when relocating from bustling city life.
With an offering of apartments, penthouses and villas at very competitive pricing, Pam Golding Properties aims to complete sales in Phases 4 and 5 over the next two years.
“The idyllic 1.5km Mon Choisy beach is a popular draw for the estate, as well as the exceptional location with Grand Baie on the western boundary as the town’s infrastructure, services and access to schools, shops and medical facilities have driven up the value of the estate – including property values," said Tagg.
“Over the past year we have seen a high demand for Residency – comprising approximately 54% of our sales in the price band from $375 000 up to $600 000. Mauritian Residency can be acquired with an investment of USD 375 000, which also qualifies your spouse and children under 24 years of age as well as your parents to live on the island.”
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