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 http://www.oecd.org/daf/inv/investment-policy/mauritius-investment-policy.htm and http://www.oecd.org/investment/pfi.htm

1. OECD Investment
Policy Review
MAURITIUS
www.investmauritius.com
04 July 2014
Nirmala Jeetah
BOARD OF INVESTMENT, Mauritius

2. Agenda
Mauritius Economic Profile
Implementation
Feedback
Findings & Recommendations

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. High Income Economy
by 2020s
USD 200*
USD 1,000
USD 2,500
USD 7,700
MONOCROP
INDUSTRIAL
SERVICES
INNOVATION DRIVEN
Economic Trajectory

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. 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. 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. 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. 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. 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. 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. Findings &
Recommendations
for Mauritius

13. Findings and RecommendationsIPR Process
Main Areas
Investment
Policies
Investment
Promotion and
Facilitation
Infrastructure
And SOEs
Trade Policy

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. 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. 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. 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. Implementation

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. 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.  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.  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.  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. Thank You