Mauritius...The Switzerland of Africa

State Bank Of Mauritius 

The Vice Prime Minister has said this before 'We are not a Tax Haven'
And we have heard before  'Mauritius has implemented the know your client (KYC) norms rigorously.Mauritius is fully compliant of global norms on financial reporting. Following the meeting of the FMs of group of 20 countries, which includes countries like US, UK, India, China and Russia, on the standard of financial reporting in 2004 to contain the menace of terrorism financing, Mauritius was one of the few countries, which was found fully compliant to the global standard in the first audit in April 2009, countries like Singapore, Switzerland, Austria, Belgium, Luxembourgand Brunei failed to pass the test'
So is Mauritius an African Switzerland?

 The Africa Report reports

It has been been described as the Switzerland of Africa,the preferred island getaway of tax evaders and avoiders – including in 2008 more than 30% of the largest US corporations. The Mauritian loophole began through a double taxation avoidance agreement with India in 1982, which created an opportunity for India’s elites to “round trip” capital through Mauritius via shell companies before reinvesting in India – a route used to obtain various tax holidays. 


Between 1991 and 2002, capital from Mauritius accounted for nearly 40% of India’s foreign direct investment. Yet while Indian, and increasingly Chinese, multinationals have used Mauritius for round-tripping purposes, it is also a gateway for those wishing to springboard into Africa. 


One example is India’s rising energy and steel multinational Essar. Its Mauritian-based subsidiary, Essar Africa Holdings, has acquired 53% of the ailing Zimbabwe Iron and Steel Company. “Thin capitalisation” allows resource companies to intentionally loan subsidiaries high-interest capital as a means of artificially diminishing profits in developing countries – or even creating losses in a technically legal manner – to avoid tax.


The provision of nominee shareholders and directors creates another problem for developing countries, especially in the context of Zimbabwe’s “conflict” diamonds, extracted from the heavily militarised Marange fields. Grandwell Holdings, the private arm of Mbada Investments – Zimbabwe’s joint venture with South African company New Reclamation – was registered in Mauritius. According to Dominic Mubayiwa, the now suspended head of the Zimbabwe Mining Development Corporation, “it would have been difficult to do due diligence on Grandwell because it is a paper company registered in Mauritius.”

Five Chinese people – Deng Hongyan, Jiang Zhaoyao, Zhang Hui, Zhang Shibin, and Cheng Qins – acted as silent beneficial owners, alongside President Robert Mugabe’s helicopter pilot, Robert Mhlanga, who currently resides in South Africa.

but consider

Statue of Bertrand Francois Mahe de la Bourdonnais, Port Louis, Mauritius

Why Mauritius is Different and is the Offshore Jurisdiction of the Future?Compare Mauritius with any other significant offshore jurisdiction, and you will find at least one of the following fundamental differences, in that Mauritius:

• Is not a dependent or "overseas" territory of another country. It is an independent, sovereign country able to form its own internal and international policies in accordance with the wishes of its own parliament. 
• Is not a member (or applicant member) of the EU, and is not subject to EU regulation or pressures. 
• Is not on the OECD "blacklist" of tax havens (nor the FATF blacklist). 
• Is not a member of the OECD, and is therefore not bound to accept its "consensus" recommendations and rulings.