Mauritius signs double taxation avoidance agreement with Gabon

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“Mauritius as a financial centre has the policy to see how we can facilitate investments into different African countries, and we see that Gabon is one of these countries which have got a substantial amount of resources, where foreign direct investment is flowing. Gabon was interested as well to see how Mauritius companies could invest into their country,” Abax Services, CEO Richard Arlove told CNBC Africa on Friday.

“One needs to remember that a tax treaty is in fact above all a means to help investments from one country to the other, and Mauritius has always been an investor into Africa. We believe that there’s a number of facilitations that we can provide to help investments flow into Gabon.”

DTAAs have always been trailed by controversy and there have been cases where countries have not been happy being party to the agreement.

Mozambique, South Africa, Namibia, Uganda and Zimbabwe are among the African countries Mauritius currently has DTAAs with.

Since the 1990s Mauritius has been a major contributor of the foreign direct investment flowing into India from the world and plans to become a strong conduit into Africa in future.

“What we see is not only money or funds flowing from traditionally what we call the West and rich countries, but we’re increasingly also seeing funds flowing from India into Africa, to the extent Mauritius can provide its value-added services to these investments,” said Arlove.