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OECD investment policy review of Mauritius


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This presentation describes the key findings from the OECD investment policy review of Mauritius and how the Mauritius government is implementing the policy reforms suggested in the review.

Nirmala Jeetah of the Mauritius Board of Investment presented and discussed the Mauritian experience of using the Policy Framework for Investment (PFI) to assess its investment climate with SADC member states in Pretoria on 4 July 2014 at the 2nd meeting of the Task Force on updating the PFI.

Find out more about the investment policy review of Mauritius and the Policy Framework for Investment at and

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OECD investment policy review of Mauritius

  1. 1. OECD Investment Policy Review MAURITIUS 04 July 2014 Nirmala Jeetah BOARD OF INVESTMENT, Mauritius
  2. 2. Agenda Mauritius Economic Profile Implementation Feedback Findings & Recommendations
  3. 3. Key Facts Area: - 2,040 Km2 (788 miles2) Population: - 1,295, 789 (July 2013) Capital: - Port Louis Government: - Republic since 1992. - Independent state in 1968. Official Language: - English Key Indicators (Sept 2013) • GDP Growth(basic prices): 3.2% • Unemployment: 8.0% Repo Rate: 4.65% (Feb 2014) Legal System: Hybrid Legal System Exclusive Economic Zone: 1.9 million km² + 396,000 km² joint extended shelf with Seychelles Star and Key of the Indian Ocean
  4. 4. High Income Economy by 2020s USD 200* USD 1,000 USD 2,500 USD 7,700 MONOCROP INDUSTRIAL SERVICES INNOVATION DRIVEN Economic Trajectory
  5. 5. Source: Statistics Mauritius 2013 GDP Composition by Industry Sector Agriculture, forestry and fishing, 3.4% Manufacturing, 16.9% Electricity , gas, steam and air conditioning supply , 1.30% Construction, 5.5% Wholesale & retail trade; 12.4% Transportation and storage , 5.7% Accommodation and food service activities , 6.6%Information and communication, 4.4% Financial and insurance activities, 10.3% Real estate activities, 5.6% Professional, scientific and technical activities , 4.7% Education, 4.7% Human health and social work activitie s, 4.2% Arts, entertainment and recreation, 3.0% Other service activities, 1.9% Export oriented enterprises, 6.2% Sea food , 1.6% Freeport , 0.5% Tourism , 7.7% ICT , 6.4%
  6. 6. Macroeconomic Fundamentals MAURITIUS 8.9 8.8 9.7 2.5 2.9 6.5 3.9 3.5 2006 2007 2008 2009 2010 2011 2012 2013 Inflation rate 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013 Real GDP growth has been stable… Inflation is falling… Debt to GDP ratio…Investment as a % of GDP 5.5 3.1 4.2 3.6 3.4 3.2 3.7 2008 2009 2010 2011 2012 2013 2014*
  7. 7. MAURITIUS Macro economic fundamentals Foreign Direct Investment Foreign Direct Investment has witnessed a general upward trend with a peak of Rs 20,373 million in 2012 while in 2013, it stood at Rs 9,512 million (to be reviewed).
  8. 8. MAURITIUS Benchmarking against OECD countries Mauritius South Africa Luxembourg Brazil GDP USD 10.5 billion USD 384.3 billion USD 60.54 billion USD 2.25 trillion GDP Per Capita USD 8148 USD 7460 USD 77900 USD 11 339 GDP Growth Rate 3.2% 2.5% 0.3 % 0.9 % Inflation 3.5% 5.7% 1.54% 6.37% FDI USD 4786 million USD 8100 million USD17800 million USD 58400 million
  9. 9. The Project Hold workshop March 2012 Consultation Mar – Nov 2012 Fact Checking Workshop Nov 2012 Final Draft Report Sep 2013 Presentation to OECD Investment Committee Dec 2013 Publication of Report
  10. 10. IPR Project TimelineIPR Process April-May 2012 Data Collection May-July 2012 Data analysis July/August 2012 1st draft and stakeholder review; inputs made to 2013 Budget October/ November 2012 Presentation of results Fact checking mission End 2012 & early 2013 Internal revision by the OECD Circulation to government stakeholders for inputs Jan. to June 2012: Launching Data collection & preparation of 1st draft Circulation & presentation of draft report to stakeholders Iterative review & revision of draft IPR Process
  11. 11. Ministries and Agencies involved BOI, SLO, MoFED Investment Policy BOI, JEC, MCCI Investment Promotion & Facilitation Customs MCCI, Ministry of Trade Trade Customs MCCI, Ministry of Trade Tax Corporate Governance Policies for promoting responsible business conduct Human Resource Development Infrastructure and Financial Sector Development Com Div., NCCG, OPSG, SE, MID, FRC JEC, ICAC, Com Div Ministries (Education, Health, Labour, Tertiary Ed, MITD, MEF) Ministries – Public Infr. Energy, ICT, ICTA, FSC, BoM, PPP Unit Ministry Civil Serv. ICAC, OPSG Public Governance 28 agencies
  12. 12. Findings & Recommendations for Mauritius
  13. 13. Findings and RecommendationsIPR Process Main Areas Investment Policies Investment Promotion and Facilitation Infrastructure And SOEs Trade Policy
  14. 14. Findings and Recommendations – Investment Policies IPR Process Challengesininvestmentpolicies Insufficiently unified investment regime Information on Investment regulations dispersed over different documents No proper Intellectual Property Rights framework Complex land system
  15. 15. Findings and Recommendations – Investment PoliciesIPR Process Recommendations for investment policies •Compile all laws in a single document •BOI: Consolidate all regulations in single document Clarify national framework for investor protection • Continue the implementation of the e- registry system •BOI: Registrar General has already embarked on the implementation of a cadastral system – LAVIMS and an e-registry system Streamline land administration system • BOI: Draft Institutional Intellectual Property Arrangement Bill approved by Cabinet, and will set up a single regulatory authority Enforcement Mechanism for Intellectual Property •Expand network of IPPAs •Set up an investment-dispute avoidance mechanism •Undertake a stocktaking analysis of existing IPPAs •BOI: Review of IPPAs is planned for 2014; technical assistance is required; and analysis will be done together with MoFED Expand the network of investment treaties and update their content • BOI: Embarked in a series of promotional campaigns in the positioning of Mauritius as the leading regional arbitration center. Give further momentum to international arbitration
  16. 16. Findings and Recommendations – Investment Promotion & Facilitation IPR Process Challengesin investmentpromotion No national investment strategy aligned with long-term infrastructure and HR development plans No assessment of the effectiveness of existing investment incentives SMEs lack of awareness on investment opportunities SME Procurement SME website facilities Industrial space to SMES Overseas marketing missions SME Financing Guarantee Scheme Supporting competitiveness of SMEs
  17. 17. Findings and Recommendations – Investment Promotion & Facilitation IPR Process Recommendations for Investment Promotion Elaborate consolidated investment strategy document BOI: To be undertaken with MoFED in line with ESTP Establish a Cost-Benefit analysis mechanism for incentives BOI: To be undertaken together with MoFED Increase SME awareness of investment opportunities BOI: To be taken up by Min. of Business, Ent. & Cooperatives Inclusion of SMEs in procurement contracts Included in Budget 2014
  18. 18. Implementation
  19. 19. Actions already undertaken following the IPR MAURITIUS • Investment Facilitation Reforms: • Investment Fast Track Committee for processing of major big-impact investment projects • E-Monitoring system to track BLP applications (in progress) • Fast-tracking delivery of work permits for Export-Oriented Enterprises • Online incorporation of companies, company search and payment of annual fees • Registering Property – electronic registry is live since 16 May 2014 • Policy Reforms: • Setting the land transfer tax at a single rate of 5% instead of 5-10% • Stronger marketing for tourism services (diversification of market) • Supporting access to finance and markets in the agro-industry sector • Increasing the export promotions by Enterprise Mauritius • Expanding sites for marine aquaculture
  20. 20. Actions already undertaken following the IPR MAURITIUS • Infrastructure & procurement, competition & corporate governance reforms: • New investments in infrastructure (PSIP) • Facilitating payment of electricity (mobile phone) • Increasing SME Procurements to 20% in the next 3 years; Others  Intellectual Property (Institutional Arrangement) Bill has been approved by Cabinet. Setting up of a Mauritius Intellectual Property Office and an Intellectual Property Council.  Arbitration – LCIA-MIAC has been set up and is operational in Mauritius – position Mauritius as a regional centre for Arbitration.  Youth Employment Programme launched to enable young graduates to be employed.
  21. 21.  Provided a good overview of the economic developmental path of Mauritius;  Document is comprehensive and can be used as a reference document  Opportunity to have all the key stakeholders and working towards a common goal – improving the attractiveness of Mauritius as an investment destination; MAURITIUS Feedback on the IPR Process
  22. 22.  Encourage the sharing of views between the public and private sector;  Identify the areas which would help in further improving the business climate;  Development of a Consolidated National Investment Strategy and new growth poles to better integrate the global market Focused on key areas crucial for developing a coherent investment policy geared towards economic growth MAURITIUS Feedback on improvement of the IPR Process
  23. 23.  The likely impact of the proposed recommendations and benchmarking with best in class countries;  Provision of more detailed information on countries where similar systems exist to know it operates MAURITIUS Feedback on improvement of the IPR Process
  24. 24. Thank You