By Tony Laguette, Associate Director Business Development, Mauritius
Many consumers in major cities like New York, London or Paris enjoy chocolate or coffee, often associating them with Swiss, American or French FMCG brands. Yet, the raw materials behind these products frequently originate from Africa.
Ivory Coast and Ghana lead cocoa production, with Ivory Coast also topping cashew nut exports with a production of about 350,000 tonnes in 2024. Ivory Coast foresees a production of more than 1.8 million tonnes for the 2024/2025 crop while Ghana is forecasting 700,000 tonnes for the same period.
Kenya is renowned for tea, coffee and flowers; Madagascar dominates vanilla production with more than 4,300 tonnes exported internationally, and South Africa is a top 10 sugar global exporter.
Africa’s economies remain heavily reliant on commodity exports, which are vital sources of foreign exchange (FX). Recent price surges have catalysed a new generation of traders eager to move beyond traditional trading houses. However, these traders often face financing constraints in domestic markets and remain vulnerable to global price volatility.
Historically, African nations exported raw materials directly to conglomerates in advanced economies. Today, a shift is underway: entrepreneurs and corporates are investing in local processing to add value before export. Mauritius, once a raw sugar exporter, now refines its sugar domestically, benefiting the entire industry. In Ivory Coast, a major French chocolate manufacturer now processes cocoa locally, something unimaginable a decade ago when ‘Made in Côte d’Ivoire’ chocolate was rare.
Other African countries are following suit. Yet scaling these efforts requires significant funding and professional support.
Mauritius as a proven hub for international trade
Mauritius has built a robust ecosystem for international business over decades. The Mauritius International Financial Centre (MIFC) serves as a strategic platform for African companies seeking global expansion.
The MIFC is increasingly used by traders across Africa as a base for operations and planning. Trading via Mauritius-based entities enables “paper trading”, ensuring direct commodity supply to destinations. The MIFC also functions as a treasury hub, offering access to seasoned professionals and financial tools.
With a strong legal and regulatory framework, Mauritius provides trade finance products through local and international banks, such as letters of credit, bank guarantees, and loans. Operating bank accounts in major currencies helps mitigate FX conversion risks. Legal support is readily available for contract negotiation, regulatory compliance and dispute resolution, reinforcing Mauritius’ role in managing cross-border operations.
Companies incorporated in Mauritius benefit from flexible structures and favourable tax regimes, depending on the type of activities conducted. Moreover, there is no capital gains tax and no exchange control, helping companies move forward swiftly with their transactions. Promoters using Mauritius can have peace of mind knowing that all transactions go through a strict AML/CFT process, ensuring compliance with suppliers and clients.
Case study 1: An Ivory Coast company specialised in cocoa transformation wants to expand its operation in Africa using a holding company in Mauritius
By establishing the holding company as a Global Business Corporation (GBC) in Mauritius, the parent company can establish subsidiaries in Africa.
Advantages of the structure:
- The holding entity can raise debt financing and provide long-term capital to the subsidiary companies
- Managed according to international standards and good governance practices in an economically and politically stable jurisdiction
- No exchange control and free flow of funds, supported by a sophisticated banking platform
- No capital gains tax upon change in shareholding.
Case study 2: A Kenyan tea producer wants to export its products to international markets using Mauritius as a procurement and trading centre
In this second example, a Kenyan tea producer may establish a trading company as a GBC in Mauritius for overseas trading.
Advantages of the structure:
- The platform is created and administered in an economically and politically stable jurisdiction by a highly qualified workforce and managed according to international standards and good governance practices
- An advantageous financial ecosystem with the presence of international banks, possibilities for financing equipment purchases, and competitive bank loans
- Absence of exchange controls and free flow of capital, plus the possibility of operating various bank accounts in major foreign currencies to facilitate trading activities
- Profits from trading or central purchasing activities are taxed at a rate of 3% in Mauritius; there are no taxes or other deductions on dividends paid by the GBC to the shareholder(s) of the company
- The GBC can eventually be converted into a Global Headquarters Administration or a Global Treasury Centre and enjoy a multi-year tax holiday on profits.
All in all, Mauritius represents an unparalleled opportunity for corporates looking to expand into the greater African continent and leverage the various double tax treaties and the investment promotion and protection agreements.
Unlock Africa’s potential with us
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