mum threshold of 3 percent, since the corporation tax in Mauritius is currently 15 percent. Moreover, the absence of any tax on capital gains, repatriation of profits, capital and dividend makes the Mauritian jurisdiction an ideal platform to provide a regional headquarter, through which to conduct all investment decisions on the continent. The jurisdiction is rendered more eco- nomically attractive through the absence of foreign exchange controls and because foreign investors may own 100 percent of shares of their businesses. The panoply of investment vehicles which may be availed by the investor also matches sophisticated jurisdictions. Besides a number of corpo- rate vehicles such as companies, trusts and limited partnerships are available to encourage private equities, collective investment schemes, holding companies and headquartering initiatives and general commercial undertakings to benefit from the advantages of their investments. Rout- ing investments through Mauritius may also serve a treasury function, whereby the shares of the entity in Mauritius are pledged, so as to provide finance to the African entities. In spite of the numerous tax advantages that it offers, Mauritius should not be viewed as a tax haven. Instead, it would be more appropriately classified as a low tax jurisdiction. Indeed, the investment route necessitates the demonstration of ment to have local directors, to be able to benefit from the sacrosanct tax residence certificate, as well as the necessity to hold meetings from the offices of the company, are a few examples of how the Financial Services Act ensures that the advantages which are guaranteed by the double taxation treaties are not abused. Moreover, there is now the possibility for offshore businesses to conduct busi- ness on the island itself, whereby those transactions will then be amenable to the standard corporation tax rate. Such initiatives have dissociated Mauritius from the negativity which flows from be- ing branded a tax haven, and has instead posited the country on the white list of the Organization for Economic Coopera- tion and Development (OECD). The legal system of Mauritius must not be underestimated, since the hybrid system of common law and codified law enables counsel to understand the backdrop to cross-border transactions. All transactions are also subject to significant rules to combat anti-money laundering and terrorism financing. The recognition of foreign judgments by the Mauritian courts and being the first country in the Southern African region to enact the International Arbitration Act 2008, based on the UNCITRAL, further makes Mauritius a jurisdiction of choice. From a logistical perspective, Mauritius is ready to provide a working solution toward investing in Africa. The tius to the continent has been a key fac- tor in establishing the headquarters of a company on the island. The possibility to reach the offices through relatively short haul flights, as opposed to travelling to European destinations and further, is a fundamental criterion. Furthermore, the presence of multinational banks, which provide reliable service on the island, is also a key reason why investment is routed from and/or effected in Mauritius. Furthermore, there is a highly edu- cated workforce, with most people being bilingual and sometimes even multilin- gual, fluent in English, French and other languages like Hindi. This indubitably opens the door for reluctant Anglophone and Francophone countries. Mauritius is undeniably a dot in the Indian Ocean and has not been bestowed with substantial natural resources. Nonetheless, the country seems poised to create a niche for itself in the regional financial arena. With a history charged with innovation, adaptability and flexibil- ity, Mauritius today prides itself in being a sound, safe and welcoming investment center. The African continent, which has yet to take full advantage of its countless resources, represents the future where investments are concerned. The island unquestionably posits itself as the miss- ing link which can help African coun- tries reach their full potential. |