“I think it’s very proactive, Mauritius is actually known for its ease of doing business. It’s also a very stable country. It comes with a legal framework that surrounds it, it also comes with the skills that are available locally to ensure the smooth running of the whole process,” Kundomal, the CEO of Capital Group, told CNBC Africa on Monday.
The Stock Exchange of Mauritius was created in 1989 and is a member of the World Federation of Exchanges. Foreign investors can benefit from a number of features – revenue on sale of shares can be freely repatriated and there is no withholding tax on dividends and no tax on capital gains.
“A lot of South African companies in fact have listed in Mauritius. There are numerous advantages, one of them is obviously the cost. Primary or secondary listings, dual-listings is also possible. It has been voted by the NYSE as the most innovative stock exchange of Africa,” added Kundomal.
While Mauritius has often been seen as a gateway into Africa rather a financial centre in its own right, Kundomal stressed that the country has the ability to change that view.
“It’s going to take a lot of skills, it’s going to take a lot of energy, a lot of commitment from businesses and from government. One of the key areas where we can improve on is go away just from fiscal optimisation but provide other services as well,” he said.
“Management, introduce corporate finance but at a larger scale instead of focusing on local markets. The banks and financial institutions should start looking regionally and through the African continent. There’s a lot of scope for that.”