For the past two years, Mauritius’s central bank has fostered measures to fortify the country's banking sector, which accounts for 12% of its GDP. While reforms are paying off, challenges such as offshore business risk persist and need to be managed, as central bank governor Rameswurlall Basant Roi tells James King.
Careful cost management and diversification have yielded solid profits for Mauritius’s banks. And with the government now focusing on SMEs, many banks are now developing their services for this sector while also expanding their footprint abroad. James King reports.
The Stock Exchange of Mauritius is aiming to attract outside interest by launching a new index that lists international companies, and will soon host the first African Development Bank exchange-traded fund, CEO Sunil Benimadhu tells James King.
Despite its major business partner India renegotiating a tax agreement, and mutterings of tax haven status, Mauritius has thrived as a regional financial centre. Now it is positioning itself as the southern hemisphere’s IFC of preference. James King reports.
Mauritius' reputation as a well regulated, safe destination for banking and business has suffered during recent corruption scandals, but such is the country's strong reputation that these events do not seem to have adversely affected its ambitions to become an international financial centre.
A move from tourism and textiles to financial services, a focus on Asia and Africa instead of Europe, and the election of a new business-friendly government have seen Mauritius' economy change direction in recent years. And the early signs are that these shifts are paying off.
The finance minister of Mauritius' belief that the country is at a crossroads is driving his efforts to revive its economy by recreating it with an emphasis on the services sector and the 'ocean economy'. He updates James King on the progress of these plans.
Mauritian banks have navigated the country’s economic slowdown well by growing their local loan books as well as their overseas operations. And the latter have been boosted by Africa’s economic buoyancy, which bankers say Mauritius should exploit to become a hub for investments into the continent.