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Mauritius Overtakes Botswana, South Africa To Become The Top Investment Destination In Africa

Despite a larger economy and a much bigger population, South Africa’s political uncertainty and failure to draw cost-sensitive investors have given way for the rise of Mauritius as the top investment destination in Africa.

Speaking to CNBC Africa, Bravura’s executive director, Soria Hay, said Mauritius is fast-gaining the reputation among investors as being the true ‘gateway to Africa’ – a title once reserved almost exclusively for South Africa.

“Economic analysts and the world see Mauritius as the number one attractive investment jurisdiction in Africa,” Hay said.

In 2006, Botswana was ranked as the most attractive destination for investors, with South Africa ranked number two – now in 2017, Mauritius has the top spot, and South Africa has dropped even further to number four. This is behind Mauritius, Botswana and Rwanda, Hay said.


From a size and impact perspective, the South African economy is much bigger, Hay said, but what Mauritius is doing right is that there is policy certainty from a tax perspective, and the government is benign – not getting too involved in businesses.

“Also they have a lot of policies to attract investment,” Hay said, pointing to a number of ‘tax holidays’ for companies that invest there, and programs to develop smart cities and tech hubs. This, she said, has served the country well over the last ten years or so.

Meanwhile, South Africa has done almost the exact opposite, with years of political uncertainty and questionable policy direction, and the government has used regulation and red tape to make business operations in the country very difficult.

Mauritius’ growth rate is well in excess of 4%, while South Africa is struggling to reach even 1%.


Written by How Africa

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