Strategic Position of Mauritius

Gateway to Africa

 

Mauritius is the preferred financial and administrative hub for doing business and making investments in Africa.

Why Africa?

Africa’s Key Performance Indicators

  • Second largest continent of the world – as big as the US, Europe, India, China and Japan combined
  • Huge market consisting of 54 countries
  • 1.2 billion people (2017) => 2.5 Milliarden (2050e)
  • Most market segments are unsaturated
  • Sub-Saharan Africa: Strong growth dynamic, second after Emerging Asia
  • National economies of many countries are growing by >6% p.a. since many years
  • Top performer 2018e: Libya +16.4%, Ethiopia +8.6%, Ivory Coast +7.4%, Rwanda +7.2%, Senegal +7.0%
  • Export oriented countries have fallen behind due to decreasing commodity prices
  • Oil producing countries (i.e. Angola, Nigeria) are currently facing problems. However, in the case of high inflation as an inevitable result of exploding money supply these countries might have the brightest outlook
  • High population growth
  • Rural exodus; migration into cities => rapid expansion of primary cities
  • Growing middle class => increasing consumption
  • Rapidly growing demand for energy
  • Heavy expansion of agricultural output can be expected – which is urgently needed for worldwide food security
  • Commodities with Africa having a significant portion of world resources: Platinum, Palladium, Cobalt, Tantalum
  • Countries being very rich of natural resources: Democratic Republic of Congo, South Africa, Zimbabwe, Botswana, Angola, Nigeria, Zambia, Gabon, Guinea
  • Africa is heavily underexplored, i.e. number of oil drillings: Northe Sea 10,000, East Africa 400
  • Big interest of China in Africa’s natural resources
  • Africa’s richness of natural resources is blessing and curse at the same time
Investments in Africa should behave relatively stable (resilient) in an international portfolio because:

  • Low financial inclusion
  • Low debt of most African countries
  • No bubbles in most asset classes due to low access to credit
  • However, there are currency problems (limited convertibility) in some countries (i.e., Nigeria, Zimbabwe, Ethiopia); specific country risks apply (i.e., South Africa)

Most attractive economic sectors in Africa

Agriculture

60% of the remaining unused agricultural land of the world is in Africa. This potential must be realized in order to feed2 billion more people by 2050.

Mining

Due to the enormous wealth of mineral resources in Africa, companies in the sector of Mining & Exploration shall belong to the winners – especially when commodity prices will rise again. However, the disparities are big: While the economically exploitable gold reserves are shrinking in South Africa, other nations have largely underexplored territories where new findings  are possible.

Water utilities

The entire value chain of water has a tremendous potential: From drinking water production, piped systems, waste water treatment, irrigation and catchment systems until exploration of new water wells.

Energy

There is a huge and ever increasing hunger for energy in Africa which can only be met to a certain degree, resulting in a big demand for power plants. Solar, hydro and wind energy as well as biomass are abundantly available in large parts of Africa, and therfe is a big potential for renewable energy sources.

Finance

The capitalisation of Africa’s stock markets is increasing, however from a low base. Many stock exchanges are still too small for attracting global stock market funds. Currently, only South Africa, Egypt, Morocco and Nigeria are on their radar. Banks, insurances and fintechs have a big potential. Mauritius as a preferred financial place and innovation hub for blockchain technologies is expected to have a bright future.

Infrastructure

The current construction boom should last for several decades, leading to big opportunities in the commercial, industrial and residential sectors. In Nigeria alone, there is a gap of14 million housing units!

Education

Education and training are the key to sustainable development. The digital revolution leads to accelerated growth and enormous opportunities.

Digitalisation

Internet, wireless networks and smartphone apps have started a technogical revolution that will influence all economic sectors. Mobile payment systems have been invented in Africa, with Kenya being at the forefront.

Ecotourism

Big animal herds in the wild can only be found in Africa – a unique experience that attracts a growing number of tourists from all over the world.

Property

Clearnace prices in crisis countries:

15 Hectares piece of pristine mountain land with house at a top location of the Eastern Highlands  in Zimbabwe, mountain view, close to the National Park: $500,000

Harare: 8 Hectares plot (divisable) in the diplomatic quarter with 3 houses and development opportunities: $ 3 million

Very interesting for risk-taking investors!

Hotels, resorts, lodges, restaurants

More business travelers, more tourists and lack of accommodation in many cities are the foundation of a bright outlook of this economic sector.

How can we assist you in your Africa-related projects?

Together with our local business partners in South Africaa, Nigeria, Kenya, Rwanda, Botswana, Zimbabwe, Zambia and other countries we are offering various consulting services to entrepreneurs, companies and investors. We are primarily focusing on implementation. This includes company formation, search for suitable joint venture partners and selection and assessment of  investment projects. 6 keys are relevant for a successful market entry:

  • Where are the most appropriate markets ?
  • Which key persons have the best access to market?
  • What kind of business model shall be applied to which target group?
  • Which capitalization strategy to be favored, and which sources of funding would be practicable?
  • Experienced and reliable partners with the right mindset and excellent contacts
  • Which products or services which target groups?
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