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Ladies and Gentlemen

��It is indeed an honour and a privilege for me to address this gathering of businessmen from China and other parts of the world. This meeting held in the context of the Africa Commodity and Investment Fair is no doubt an opportune moment for me to apprise the businessmen present here about the investment conditions in Mauritius. I wish to thank the Chinese Authorities for giving me the opportunity to speak about the investment conditions in Mauritius.

��But before I dwell on the subject I would like, on behalf of the Government of Mauritius and my own behalf, to express our gratitude to China for organising the Africa Commodity and Investment Fair. I am given to understand that this composite fair is being held for the second time after two years. This event provides an ideal platform for African countries first; to display the range of products manufactured by them; second to explore export opportunities with potential buyers; third to introduce the business conditions of individual countries; and finally to enable policy makers and businessmen to interact. I believe that the event will contribute to enhance economic cooperation between Africa and China.

Ladies and Gentlemen,

��The Mauritian economy has made remarkable strides with average economic growth of around 5 % annually over the last four decades. Over the years the country has realised a remarkable economic transformation from a mono-crop economy based on sugar production to a diversified economy resting on export-oriented manufacturing, tourism, and financial and business services sectors. In recent years, Information and Communication Technology, Hospitality and Property Development, and the Seafood and Marine Industry have emerged, attracting substantial investment from both local and foreign investors. In addition, thanks to strong support from the Government, a number of projects in the following sectors are being implemented: (i) Land-Based Oceanic Industry, (ii) Knowledge Industry, (iii) Renewable Energy, (iv) Agro processing and biotechnology, and (v) Logistics and Distribution.

��Mauritius has emerged as a middle-income economy with a GDP per capita of US $ 7,000. This has helped to bring about profound social changes in the country. Driven by sound economic and social policies, preferential market access, tariffs protection, modern infrastructure, incentives and a dynamic entrepreneurial class, the country has forged ahead. Now it is facing challenges of a different nature, which nonetheless have to be met with the same zeal and determination if we want to sustain development. Our objective is to double GDP per capita by 2015.

��The Government has embarked on a bold economic reform programme aimed at moving Mauritius from reliance on trade preferences to global competitiveness. The reform strategy aims to remedy fiscal weaknesses and to open up the economy, facilitate business, improve the investment climate, mobilise foreign direct investment and expertise, and introduce structural reforms to support sustainable growth. The results of the economic reforms have been swift and tangible. The economy turned around and grew by 5 % in 2006, up from 2.3 %in 2005. GDP growth in 2007 was 5.4 % and is projected to reach 5.7 % in 2008. Foreign Direct Investment (FDI) in 2006 amounted to USD 229 million, more than the cumulative total for the previous four years. In 2007, FDI is estimated at USD 313 million. It is expected to rise to USD 469 million in 2008. All these figures no doubt indicate that the country is an attractive destination for foreign investment.

Ladies and Gentlemen

��Mauritius is a parliamentary democracy with political and economic stability, rule of law, good governance, a high literacy rate, modern infrastructure and communications, a liberal investment policy, harmonious industrial relations, low corporate tax, and pleasant quality of life. Elections are held every five years and change in Government does not lead to reversal of economic policies. Mauritius maintains a sophisticated and impartial legal system based on both Napoleonic code of France and British common law. Property rights are fully respected. The system protects all tangible property. Intellectual property rights are also protected by appropriate legislations. While Mauritius has an active trade union movement, labor-management relations are generally good. Unionized workers, which account for less than 25 percent of the workforce, act responsibly and rarely disrupt business. There has not been a major strike since 1979.
��In Mauritius we firmly believe that Government should play the role of a facilitator and a catalyst to promote development and the private sector should be the engine of growth. It has been acknowledged that production should best be left to the private sector which is more efficient at it. The Government is involved in such critical functions as formulating and implementing appropriate policies, provision of incentives and infrastructure facilities, institutional support, human resource development, development of a quality infrastructure and enhancing competitiveness. Government is bent on creating a hassle-free and conducive business environment in order to transform Mauritius into a very competitive platform for goods and services. Steps have been taken to reengineer the whole business process, which had become cumbersome. A higher level of investment is critical to sustain the development of the economy. Government is leaving no stone unturned to generate such investment, both domestic and foreign.

��As a result of our economic track record and various measures taken the country has emerged as taken the most competitive and successful economy in Africa. The World Bank��s 2008 Doing Business report ranks Mauritius first in Africa and 27th in the world for ease of doing business. The Foreign Direct Investment magazine published by The Financial Times, put Mauritius first on the list of business-friendly countries in Africa. Mauritius achieved the highest ranking in sub-Saharan Africa in the recent survey of standards of national governance. The 2007 Ibrahim Index of African Governance compiled by the Kennedy School of Government at Harvard University, ranked Mauritius the best-run country in Africa. The Government of Mauritius' objective is for Mauritius to rank among the top ten most investment-and business-friendly locations in the world.

��Investment in Mauritius is governed by the Investment Promotion Act of 2000 and the Business Facilitation Act of 2006. Mauritius does not discriminate between local and foreign investment. The Investment Promotion Act established the Board of Investment (BOI) as the Government��s investment promotion agency. It also acts as a one-stop focal agency for business registration. The BOI acts as the facilitator for all forms of investment in Mauritius and guides investors through the necessary processes for doing business in the country. The Business Facilitation Act 2006 abolished trade licenses and allowed businesses to start operations within three days of incorporation. Foreigners are allowed to own 100 percent equity in a local company. Also, residence permits and work permits for foreign investors, self-employed, and professionals have been combined into an occupation permit, which is now processed within three working days. Individuals holding an occupation permit can be eligible for permanent residence after three years. A new residence permit allows non-citizens to retire in the country. Foreign nationals can acquire property for business purposes.

��Government incentives for investment include: a low corporate tax rate of 15 percent; exemption from customs and excise duties on imports of equipment and raw materials; exemption from tax on dividends and capital gains; a low rate of 5 percent registration duty for notarial deeds; free repatriation of profits, dividends, and capital. Investment opportunities in Mauritius are available in the following sectors: textile and clothing, light engineering, electrical and electronic industry, seafood and aquaculture, information and communication technology, tourism, land-based oceanic industry (exploiting deep-sea pure water for bottling and various other applications), hospitality and real estate development (including hotels and integrated resort/luxury villas), ethanol production, spinning, renewable energy, education and training, and healthcare.

Ladies and Gentlemen

��Located in the Indian Ocean between Africa, Asia and Australia, Mauritius offers a successful business base for both regional and international trade. Asian companies can use Mauritius as a platform to tap regional markets through Mauritius�� membership in the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), which offer preferential access to a market of 380 million consumers. The country also enjoys preferential access to the EU under the Interim Economic Partnership Agreement and with the US market under AGOA for a wide range of products. Mauritius remains a land of opportunities in the Southern and African region. People from many parts of the world have settled here making the country their homeland. The Chinese Diaspora in Mauritius comprises a dynamic business community which has made enormous contribution to our economy. Most of them are in commerce and manufacturing. Some of them control a few of the largest enterprises in the country.

��The Chinese Government is encouraging Chinese businessmen to invest in Mauritius in order to tap the regional markets of COMESA and SADC. The Tianli Enterprise Group, a Chinese firm which is already operating a spinning plant in Mauritius, is planning to invest USD 100 million in infrastructural works for the establishment of a Trade and Economic Zone near the Mauritius port. The total cost of the Trade and Economic Zone project, supported by the Chinese Government, is estimated at about USD 530 million and is expected to attract Chinese investors in a wide range of sectors, including textile and apparel, light engineering, manufacturing, fish processing, and high-tech operations. Another Chinese company plans to invest Rs200 million in a paper recycling project in 2008 for the production of toilet and photocopy paper. Works on both projects have just started.

��The Mauritius Freeport was established in 1992 as a customs-free zone for goods destined for re-export. The Government's objective is to promote the country as a regional warehousing, distribution, marketing, and logistics center for Eastern and Southern Africa and the Indian Ocean rim. Through its membership in the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the Indian Ocean Commission (IOC), Mauritius offers preferential access to COMESA and SADC, which represent an import potential of USD 90 billion.

Ladies and Gentlemen

��Mauritius also has an active offshore financial sector also called the called global business) sector, which is a major route for foreign investments into the Asian sub-continent. Mauritius is by far the largest source of FDI and portfolio investment in India, estimated at USD 6 billion in 2006, which accounts for roughly 55 percent of the global business sector. Major U.S. corporations use the Mauritius offshore sector to channel their investment to India. These investments are mainly attracted by a particularly favorable Double Taxation Avoidance Treaty which exists between Mauritius and India. Today Mauritius had Double Taxation Avoidance Treaty with a total of 33 countries.

��The Government has set up the Integrated Resorts Scheme (IRS) to attract high net worth non-citizens desiring to acquire an immoveable property of not less than USD 500,000 in Mauritius (within a resort approved by the BOI) for personal residence. The investor and his/her spouse and dependents are granted resident permits to live in Mauritius.

Ladies and Gentlemen,

��Mauritius has strong economic ties with China. In fact, China remains one of our major trading partners. However, the pattern of trade between the two countries is unevenly balanced and highly in favour of China. Imports rose by almost 38% in 2007 to reach Rs. 13.8 billion, whereas exports declined by 19% during the same period and stood at Rs. 133.6 million in 2007. Our main export product has remained frozen fish. With robust growth being registered and rising standard of living, the Chinese market is expanding and becoming more sophisticated. While Mauritius obviously cannot match the clout of China, it can certainly raise and diversify its exports to this growing market. I hope that this event will also provide some insight into ways and means to increase exports to China.

Ladies and Gentlemen

��I have to commend the efforts of the Chinese authorities to strengthen cooperation with Africa, a continent with tremendous potential. We in this region appreciate the renewed interest of China in the economic progress of the continent. The various initiatives taken by China in this context show that there is a strong desire to strengthen our ties. The new partnership that is being developed between the China and Africa will not only catalyse development of our countries but will also be mutually beneficial.

��May I end by reiterating that Mauritius has the vision to become a competitive economic platform for goods and services in the Southern and Eastern African region. We have the will to succeed. I shall exhort potential investors in search of an attractive investment destination to consider Mauritius. Thank you.

R.J