29 May 2015

Mauritius: A gateway financial centre for the Indian Ocean

Positioned between Asia’s capital and Africa’s need for capital, AfrAsia Bank is becoming a nexus for business in the region

James Benoit, CEO of AfrAsia Bank, tells World Finance about the latest trends in wealth management for the bank's diverse client base.

Mauritius: FSC Public Notice - Suspension - Belvedere Fiduciary Limited

Suspension of the Management Licence of Belvedere Fiduciary Limited

Notice is hereby given in accordance with Section 27(7) of the Financial Services Act 2007 (the “FSA”) that the Management Licence of Belvedere Fiduciary Limited (“BFL”), having its registered address at 7A, 7th Floor, Ebene Mews, 57 Ebene Cybercity Mauritius has been suspended with immediate effect.

The Financial Services Commission, Mauritius (the “Commission”) has taken this decision, inter alia, on ground that BFL has breached its fiduciary duty under Section 37 of the Trust Act 2001.

Furthermore, in accordance with Section 27(5) of the FSA, BFL shall cease to carry out the activity authorised under its licence but shall remain subject to the obligations of a licensee and to the directions of the Commission until the suspension of the licence is cancelled.

Financial Services Commission, Mauritius
29 May 2015


Moody's: Mauritius's diversified and resilient economy support rating; fiscal challenges remain

Mauritius's small yet diversified economy, good record of attracting investment and its resilience against external shocks underpin its Baa1 (Stable) government bond rating, Moody's Investors Service said in its latest credit analysis of the country published this week.

The Mauritian authorities' key challenges are to continue to foster domestic and foreign investment, maintaining the country's financial stability and consolidating the public finances to help meet its government debt reduction commitments.

"While Mauritius has a small and open economy that is susceptible to external shocks, it also has an impressive record of resiliency," said Lucie Villa, Assistant Vice President and co-author of the report. "The country's relative wealth and diversification and the authorities proactive policies all support the economy."

Moody's believes Mauritius's economic outlook is healthy and forecasts real growth of 3.6% in both 2015 and 2016, in line with historical averages.

Mauritius stands out in the region for its ease of doing business, its low taxes, and the importance given to the private sector's views when the government shapes economic policy. Ample liquidity available in the domestic capital market supports the government's capacity to access local currency denominated funding.

A substantial deterioration of government debt metrics or increased external vulnerabilities would exert downward pressure on the rating. Conversely, a significant and permanent reduction in Mauritius's vulnerability to external volatility and shocks would exert positive pressure.

The government is committed to lower its debt to 50% of GDP by 2018. However, the medium-term fiscal path presented in the last budget relies on back-loaded fiscal deficit reduction based on tight current spending control and the pick-up of growth. This underlines the risks of the government potentially missing its targets. General government debt is high compared to peers.

The authorities also faces a challenge in finding ways to protect the public finances from any spillover effects from country's financial sector, which includes a relatively small banking system. The problems recently uncovered in the Bramer Corporation Limited (unrated) highlight the challenges facing the supervisory authorities.

Moody's expects monetary policy to remain in-line with the central bank's objectives of price stability and balanced economic development. Mauritius enjoys a stable political environment with well-established institutions and a tradition of coalition politics.

28 May 2015

Why Mauritius and the UK are still sparring over decolonisation

The UK may have granted Mauritius independence in 1968, but it remains closely tied to the Indian Ocean island nation – and it’s been locked in an on-off territorial dispute with it for decades. Decolonisation, it seems, is not so simple.


FSC Mauritius issues Public Notice - Suspension - FX Primus Limited

Suspension of the Investment Dealer (Currency Derivatives Segment) Licence and the Investment Dealer (Full Service Dealer excluding underwriting) Licence and Global Business Licence of FX Primus Limited

Notice is hereby given in accordance with Section 27 (1) and 74(6)(a) of the Financial Services Act 2007 (the ‘Act’) that the Investment Dealer (Currency Derivatives Segment) Licence, the Investment Dealer (Full Service Dealer excluding underwriting) Licence and the Global Business Licence of FX Primus Limited (‘FXP’) have been suspended with immediate effect.

FXP has as registered address: NightyEast Corporate (Mauritius) Ltd, Ebene House, 3rd Floor, 33 Cyber City, Ebene, Mauritius.

The Financial Services Commission, Mauritius (the ‘Commission’) has taken this decision on the grounds that FXP has, inter alia, failed to comply with:

(i) the specific provisions provided under the Act;
(ii) the Code on the Prevention of Money Laundering and Terrorist Financing; and
(iii) the licensing conditions attached to its licences.

In accordance with Sections 27(5) and 74(3) of the Act, FXP shall cease to carry out the activities authorised under its licences. However, FXP remains subject to the obligations of a licensee and to the directions of the Commission until the suspension of the licences is cancelled.

Financial Services Commission, Mauritius
28 May 2015


27 May 2015

FSC Mauritius consults on amendments to CIS Regulations

The FSC Mauritius proposes draft amendments to be made on the 6th and 7th schedules of The Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008, for consultation. The proposed changes are mainly in relation to Funds categorised as Collective Investment Schemes - Global Scheme/ Retail CIS; and Closed-End Fund - Reporting Issuer (Domestic companies).

The deadline for submission of comments is set for 12 June 2015.

26 May 2015

WSJ: A Global Economy Needs an Offshore Industry

Since the beginning of the global financial crisis, politicians, the media and the public have engaged in a series of blame games to find those responsible for economic losses. One “culprit” has been firmly in the spotlight: the offshore industry.

FSC Mauritius issues Consultation Paper on Registration of prospectus

The Financial Services Commission, Mauritius (the “FSC Mauritius”) consults on the registration of prospectus for securities being offered to the public by applicants/potential issuers.

In view of bringing more clarity and transparency to the market, the FSC Mauritius is reviewing its policy in respect of the procedure for the registration of a prospectus where securities are being offered to the public by applicants/potential issuers. In this respect, the Commission is issuing a Consultation Paper seeking views and comments from securities exchanges, market participants and the public.

This Consultation Paper may be reviewed in the light of views and comments received during the consultation exercise.

Your views and comments should be submitted by email on consult2015@fscmauritius.org and must reach the FSC Mauritius by 5 June 2015.


25 May 2015

It’s Raining Black! Chronicles of Black Money, Tax Havens and Policy Response

It's Raining Black! Chronicles of Black Money, Tax Havens and Policy Response is a unique combination of legal and policy level developments. The book is spread over eight chapters dividing the analysis into two broad aspects, first, the domestic perspective and secondly, the international arena. The underlying theme of the book is that unless domestic generation of black money is curbed, our gallant efforts to retrieve wealth from tax havens would not meet with much success. The book attempts to provide an effective approach for the Government to combat the multiple aspects of black money in a comprehensive manner. This work is more than a legal treatise as it not only deals with the legal complexities of DTAAs and domestic legislation, but also makes an objective assessment of facts and events which have influenced the campaign against black money in the past few years.

The book reveals how the relationship between corruption and black money has been institutionalized by vested interests of key stake-holders and beneficiaries. The book also highlights the need for judicial intervention in combating the issue of black money. In the backdrop of several ground realities, the book presents the much talked about The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 in a different dimension and raises pertinent questions for serious contemplation by the Government.

22 May 2015

Capital gains tax for non-residents disposing of UK residential property: Final Rules

The new capital gains tax charge on non-residents who dispose of UK residential property, "non-resident CGT" (NRCGT), introduced in the Finance Act 2015, came into effect on 6 April 2015.


As the updated briefing note is similar in many respects to earlier versions of this briefing written since the new rules were first proposed, for ease of reference, we have produced a pdf in which material differences are highlighted.

Bourse de Maurice : Les étrangers désinvestissent, Rs 4 milliards

De janvier au 20 mai 2015, les investisseurs étrangers ont vendu des titres pour un montant supérieur à Rs 4 milliards. Alors que les achats n’ont même pas atteint la barre de Rs 1,5 milliard. Le Net Foreign Outflow (ventes moins achats) est, donc, d’environ Rs 3 milliards.

21 May 2015

India's Strides to buy Australia, Mauritius drug assets from Aspen for $300 mln

Indian drugmaker Strides Arcolab Ltd has agreed to buy businesses in Australia and Mauritius from South Africa's Aspen Pharmacare Holdings Ltd , paying $300 million to expand its footprint in markets set for brisk growth.

For about A$380 million ($300 million), Strides is buying a generic drug operation in Australia that brought in sales of A$120 million in the year ended in June 2014, the firm said in a stock exchange filing on Thursday.

The deal also covers the sale by Aspen's Mauritius unit of a portfolio of six branded prescription drugs to Strides' Singapore business. Strides, a major manufacturer of soft gelatin capsules, said it will also gain access to Aspen's product pipeline that includes some "major product launches in the next six months".

Australia's pharmaceutical market is expected to grow to $32.1 billion by 2020 from $22.7 billion in 2013, according to market research firm Global Data, driven by rising health insurance cover and an increasing elderly population.

Invesors welcomed the news, sending Strides shares 5 percent higher in Mumbai at 0734 GMT, while the broader market was down 0.17 percent.

In its own statement, Aspen said the deals were in line with its existing strategy "to focus attention in areas where most value can be added".

The moves are the latest in a series by Strides to streamline its portfio of assets. It bought Chennai, India-based drug ingredients maker Shasun Pharmaceuticals Ltd for $200 million last September, while in 2013 it sold its injectable drugs unit, Agila Specialties, to U.S. firm Mylan NV for about $1.6 billion.

Strides owned Ascent Pharmahealth Ltd in Australia until 2012, when it sold the business to U.S. firm Watson Pharmaceuticals Inc, now called Actavis plc. At the time, Strides said the deal was to sharpen its focus on high-margin, sterile injectable products.

Strides said the Australian business will operate under the Arrrow Pharmaceuticals brand and will sell both prescription and non-prescription products, Strides said.

The deals will be financed using internal reserves and debt, Strides said, and should be immediately accretive to its earnings per share. The company said it expects the deals to close by the end of the second quarter.

BOM : Bourse, Rs 2,5 Mds désinvestis par les étrangers

Pour le seul mois d'avril, le montant enregistré était de Rs 1,2 milliard

Le défi des réglementations

Le coût de mise en conformité aux réglementations augmente d’année en année pour l’industrie de la finance. Une des séquelles de la crise financière de 2008.

20 May 2015

Mauritius: Joint FSC-ATMC Meeting Deliberations

Pursuant to the deliberations at the Joint FSC-ATMC Meeting held at FSC House on 15 May 2015, the Financial Services Commission (FSC Mauritius) has taken the following decisions:
  1. The FSC Mauritius has introduced a system to facilitate direct telephone access to all Clusters without going through the telephone operators with effect from 18 May 2015. Furthermore, the direct telephone lines of Heads of Clusters have also been notified on the FSC website on 18 May 2015.
  2. Relevant measures, including deployment of adequate officers and the streamlining of processes and procedures, are being taken to ensure prompt and speedy processing of complete application for the granting of a licence. The FSC Mauritius functions under the principle of equity, fairness and transparency. In line with these functions, the FSC Mauritius will regularly publish on its website, statistics on the average time taken for the issuance of a licence of a duly completed application. Management Companies are hereby requested to exercise due diligence and professionalism while evaluating their clients, including their respective business plans, thus ensuring that applications submitted are complete.
  3. While submitting Tax Residence Certificate (TRC) applications, GBC1s shall demonstrate that they are meeting any one of the substance requirements as stipulated in Section 3 of Chapter 4 of the Guide to Global Business (as amended). In the event they are not able to demonstrate compliance with same, they may apply directly to the Mauritius Revenue Authority (MRA), which is the competent authority to issue TRC. The FSC Mauritius has embarked on a project for online applications for TRC to ensure speedy processing of the applications.

Parthasarathi Shome: Minimum alternate tax on foreign companies

The demand was not only not imperative for the income tax department, but it went against already arrived-upon understandings

19 May 2015

The Financial Secrecy Index: Shedding New Light on the Geography of Secrecy

Both academic research and public policy debate around tax havens and offshore finance typically suffer from a lack of definitional consistency. Unsurprisingly then, there is little agreement about which jurisdictions ought to be considered as tax havens—or which policy measures would result in their not being so considered. In this article we explore and make operational an alternative concept, that of a secrecy jurisdiction and present the findings of the resulting Financial Secrecy Index (FSI). The FSI ranks countries and jurisdictions according to their contribution to opacity in global financial flows, revealing a quite different geography of financial secrecy from the image of small island tax havens that may still dominate popular perceptions and some of the literature on offshore finance. Some major (secrecy-supplying) economies now come into focus. Instead of a binary division between tax havens and others, the results show a secrecy spectrum, on which all jurisdictions can be situated, and that adjustment lfor the scale of business is necessary in order to compare impact propensity. This approach has the potential to support more precise and granular research findings and policy recommendations.


Financial Services Commission : Les permis suspendus et révoqués en 2015

La Financial Services Commission est sur le pied de guerre. Depuis le début de 2015, les suspensions ou révocations des permis d’opération sont légion.

The Lawyer: Linklaters ousts Allen & Overy to top list of foreign India practices

Linklaters has supplanted magic circle rival Allen & Overy (A&O) as the international firm seen to have the most robust India practice, with the firm coming highly-recommended by clients and Indian firms.

17 May 2015

Nespresso introduces a rare Andean treasure with the 2015 Pure Origin Limited Edition Perú Secreto

Nespresso invites coffee lovers to embark on journey of the senses into the Peruvian Andes to discover a remarkable treasure. Perú Secreto, the newest Limited Edition Pure Origin Grand Cru, is a unique Arabica blend sourced from remote coffee farms nestled along the spectacular Andean hillsides and valleys of Peru.

We know that our Club Members enjoy discovering new tastes, aromas and experiences through our Limited Edition Grands Crus,” says Karsten Ranitzsch, Head of Coffee at Nestlé Nespresso SA. “Our coffee experts are excited to take them on a new sensory journey to reveal a well-kept secret in the coffee world – Peru and the exceptional coffee the region produces.”

Introducing a new country to the Pure Origin range

With Perú Secreto, Nespresso invites coffee lovers to discover the taste of Peru, the newest coffee-growing country within the Pure Origin range of Grands Crus. The permanent Pure Origin range currently showcases four iconic countries of origin, with Indriya from India, Rosabaya de Colombia, Dulsão do Brasil and Bukeela ka Ethiopia. Each of these Grand Cru creations is sourced exclusively from a single country of origin and reflects the regions’ distinct flavour profiles.

Perú Secreto, like the recent Monsoon Malabar from India, will be available for a short time only, due to limited supply. Nespresso coffee experts worked closely with 176 coffee farms in four different areas around the Peruvian Andes to acquire small amounts of exceptional green coffee to create this 100% Arabica blend.

Various factors combine to distinguish this region and the coffee it produces. The subtropical climate provides optimal cultivation conditions, with alternating wet and dry seasons. The high altitude of around 1,500 metres above sea level provides the right amount of sunlight for quality coffee to flourish. Finally, the local Peruvian farmers, working through the Nespresso AAA Sustainable Quality™ Program, are dedicated in their care of the terroir that provides them with their livelihood. This unique alchemy is the secret behind Perú Secreto.

Perú Secreto, an intense, sweet and round espresso Grand Cru

With an intensity of 8 on a scale of 1 to 12, Perú Secreto is intense, sweet and round with roasted and cocoa notes. This complex yet well balanced Pure Origin espresso also pairs well with milk, as it develops a creamy texture with subtle hints of banana flambé and a rich, lingering finish.

Coffee lovers can discover a selection of delicious recipes based on Perú Secreto at www.nespresso.com/peru-secreto/recipes.

The stone-like finish on the packaging for Perú Secreto recalls the rugged, mineral-rich rocks of the Andes, the world’s highest mountain range outside of Asia. An ornate design adorning the sleeve invokes the lasting legacy of ancient civilizations in Peru. The brilliant blue metallic capsule refers to the rich microclimate and natural environment that contribute to coffee cultivation in the region.

The Limited Edition Perú Secreto will be available for purchase at Nespresso boutiques worldwide, online and through Nespresso Customer Care Centres for a limited time, starting 18 May 2015.

South Africa: FSB flags farm sale in Ponzi probe

A puzzling Stellenbosch farm sale could prove to be the undoing of Cape Town fund manager Cobus Kellermann, whose company, Belvedere Management, has been accused of masterminding a R200-billion global Ponzi scheme.

15 May 2015

Mauritius-Indonesia: Working Session focus on Enhancing Bilateral Agenda

A high-level working session, aiming to review Mauritius-Indonesia bilateral cooperation ties, explore new avenues of collaboration and enhance synergies to put substance to the bilateral agenda between the two sides, was held yesterday in Port Louis.

The meeting was chaired by the Minister of Foreign Affairs, Regional Integration and International Trade, Mr Etienne Sinatambou.  The Indonesian side was represented by a five-member delegation, led by Mr Lasro Simbolon, Director for African Affairs, Ministry of Foreign Affairs of Indonesia.

Discussions during the working session focused on the following: bilateral air services agreement; investment opportunities; cooperation in the fields of ocean economy, tourism, development of SMEs; Mauritius candidature for an Observer Status in the Association of Southeast Asian Nations (ASEAN) and visa facilitation.

In a statement Minister Sinatambou recalled that his Ministry’s role is to act as a facilitator by enabling Ministries and the private sector to explore collaborative prospects with Indonesia, which will consequently pave the way for Mauritius to generate wealth and prosper.

Speaking about collaborative prospects that can be explored, the Minister evoked the Ocean economy as one such sector whereby Indonesia’s vast experience can be tapped.  Indonesia experience in that sector spans over 10 years of holistic exploitation and that is why Mauritius can learn a lot from expertise in this field as the ocean economy encompasses port activities, aquaculture, and pearl culture that can be explored, he said.

The Minister further outlined that Indonesia has a joint programme with the FAO related to developing a new concept of maritime economy.  This programme, starting this year and which ends in 2018, is expected to create more than 75 000 jobs and generate over 110 million US dollars yearly.  This is where we can learn from their experience and the FAO’s concept and try to replicate the same in Mauritius, said Mr Sinatambou, adding that there are a lot of prospects and potential that can be exploited by both countries.

According to the Minister, Mauritius can also learn from the manufacturing sector since Indonesia, with half of its people aged below 30 years, can and has to produce a lot to nourish its vast population.

For his part the Director for African Affairs, Ministry of Foreign Affairs of Indonesia, Mr Lasro Simbolon, said that Indonesia wishes to develop substantive relations with Africa through Mauritius, which is strategically located in the Indian Ocean.  Our avenues are multi-faceted and multi-pronged, he said while calling for the need to have more interactions at ministerial levels and the business community.  There are plenty of opportunities for Mauritius in Indonesia and it is crucial to have more exchanges through visits, he added.

Indonesia, a country with a 250 million population, is the biggest economy in South East Asia.  It has the biggest Archipelago in the world with more than 17500 islands.

14 May 2015

Adeela Rawat: “I am apparently suspected without an iota of evidence that i know of”

“We are left with no money to even feed our children!” Adeela Rawat says in this exclusive interview published in Weekly last week. She severely criticized the way all this BAI saga was being handled by the authorities. She talked about “a systematic campaign of character assassination” and the “psychological trauma” which her family is facing. Here's the full interview of the first member of the Rawat family to have talked to the press a couple of days before the arrest of her husband, Claudio Feistritzer‬.

Alec Hogg: The life lessons I learned from a Ponzi scheme

In the midst of headline news of a financial scandal of breathtaking proportions, come lessons that can serve us all well in the business of life. 


Mauritius: Prime Minister reiterates his commitment towards good governance

The Prime Minister, Sir Anerood Jugnauth, reiterated his commitment towards good governance and in further partnering with the global bodies of Chartered Accountants with a view to establishing a good framework for the Financial Services sector.

This was the focus of discussions yesterday during a courtesy call on Sir Anerood Jugnauth at the Treasury Building in Port Louis by a delegation comprising the Chief Executive of the Chartered Institute of Public Finance and Accountancy, Mr Rob Whiteman; the President of International Federation of Accountants, Mrs Olivia Kirtley; and the President Pan African Federation of Accountants, Professor Moussa Assa.

Discussions also centered on how best Mauritius can collaborate with the international Chartered Accountants’ agencies to acquire greater benefits from their experience. The international delegates expressed their satisfaction with achievements made by Mauritius in its Financial Services sector and proposed to use our country as a model and reference in the African continent.

A delegation of Chartered Accountants is currently in Mauritius in the context of the 3rd Africa Congress of Accountants organised by the Mauritius Institute of Professional Accountants and the Pan African Federation of Accountants.

13 May 2015

Good revenue growth but the impact of revised visa regulations on SA’s hospitality and tourism industry remains to be seen

South Africa’s hospitality industry is prepared to grow further in the next five years, with most growth in the sector expected to be generated in Cape Town, according to a report released by PwC today.

Nikki Forster, Hospitality Industry Leader for PwC, Southern Africa, says: “Although South Africa’s economy has weakened, the hotel industry in 2014 has benefited from an increase in foreign visitors and rising room rates.”

PwC’s 5th edition of the ‘Hospitality Outlook: 2015 – 2019’  projects that by the year 2019 the overall occupancy rate across all sectors in South Africa will continue to increase, rising to an estimated 58.3% from 54.4% in 2014. “The hotel occupancy rate reached its highest level in 2014 of 59% since 2008. The hotel occupancy rate is expected to increase to 62% by 2019 but still remain lower than the 68.4% achieved in 2008,” adds Forster.  Five star hotels are expected to achieve a high of 80% occupancy in 2019.

However, one of the most significant recent developments in 2014 and 2015 in the South African tourism industry was the revision of the country’s visa regulations. “Under the revised regulations tourists to South Africa will have to apply in person for visas to visit South Africa so that biometric data can be reliably collected. In addition, parents and guardians travelling with minors must have an unabridged birth certificate that shows the names of both parents,” adds Forster.

“Although the new regulations are intended to protect South Africa they could have unforeseen consequences for the tourism and hospitality industries,” cautions Foster. “Furthermore, the regulations may be onerous for tourists to comply with. It still remains to be seen as to how they will affect the tourism and hospitality sectors.

Worldwide, governments are focusing on efforts to relax visa requirements to promote tourism. Tourism industry commentators in South Africa say the regulations have already adversely affected travel from China and India.

PwC’s report features information about hotel accommodation in Nigeria, Mauritius and Kenya. The accommodation sector in South Africa consists of hotels, guest houses and guest farms, game lodges, caravan sites, camping sites and other overnight accommodation.

“The accommodation market in South Africa enjoyed its third consecutive year of strong growth with a 9.1% advance following two years of double-digit gains. We expect total room revenue in South Africa to expand at an 8% compound annual rate overall and by 8.1% compounded annually for hotels,” says Forster.

Growth in room rates will be the main driver of revenue, with new hotels in Cape Town leading the expansion.

Hotel accommodation

In 2014 overall spending on rooms in South Africa rose 9.1% to R18.9 billion, with rising room rates being the principal driver. Hotel room rates rose 7% just above inflation with five-star hotels achieving the fastest growth at 12.8%. With the market now improving, there is renewed activity in the hotel industry as major hotel chains upgrade current facilities, renovate their properties or make plans to expand and open new hotels. The report estimates that by 2019 there will be about 63 600 hotel rooms available up from 60 800 in 2014.

Elsewhere, the hotel markets in Nigeria and Kenya were both adversely affected by terrorist activity in 2014 and Nigeria was also hurt by the outbreak of the Ebola virus in West Africa.  Because of its strong economy, the hotel industry in Nigeria has attracted significant investment and the number of hotel rooms in Nigeria is expected to more than double during the next five years with much of the growth taking place in Lagos. The number of available hotel rooms in Mauritius, a resort destination, is also expected to increase at a 2.8% compound annual rate.

Outlook: South Africa 2015 – 2019

Overall room availability in South Africa is expected to increase at modest rates for each category with guest houses projected to be the fastest-growing category averaging 1.0% compounded annually. Overall room availability is projected to increase at a 0.7% compound annual rate to 120,300 in 2019 from 115,900 in 2014.

The overall occupancy rate rose to 54.4% in 2014 with each category increasing. Guest houses/guest farms had the highest occupancy rate at 62.9%. The overall occupancy rate is forecast to climb to 58.3% in 2019.

Total room revenue is forecast to reach R27.7 billion in 2019, an 8% compound annual increase from 2014.

Stay unit nights rose 3.6% in 2014 with most of the growth generated by a 10% increase in caravan/camping sites and other accommodation. “We expect stay unit nights to rebound in 2015, helped by an improving global economy and pick-up in economic growth. Growth, however, may be hampered by the recent imposition in 2014 of the new requirements needed to obtain a visa and in 2015 related to travelling with minors,” adds Forster.

“Consequently we project stay unit nights to grow more slowly over the forecast period compared with increases during the 2010-13 period.”

It is also expected that the market can sustain mid-single-digit price rate increases in room rates without adversely affecting stay unit nights. The average room will cost R1 083 in 2019 from R820 in 2014.

Outlook: Nigeria, Mauritius, Kenya 2015 – 2019

The Nigerian hotel market was hit by health concerns in 2014 in the wake of the Ebola virus and concerns around terrorism. Room revenue declined by 2.0% and the three – and four –star hotel market took a knock as revenue fell 7.7%. For the forecast period as a whole, stay unit nights are projected to increase at a 6.6% compound annual rate to 2.2 million in 2019 from 1.6 million in 2014. Occupancy rates fell in 2014 for the first time to 49.8% and as development continues are expected to fall further to under 3.0% The number of tourist arrivals to Mauritius increased 4.6% in 2014, exceeding the one million level for the first time. Faced with competition from The Maldives, Sri Lanka and The Seychelles, hotels have been reluctant to raise room rates in recent years.

Kenya’s hotel market declined during each of the past three years, with total revenue falling 7.1% and by a cumulative 16% since 2011. Despite continuing concerns around terrorism a number of new hotels are scheduled to enter the market. Stay unit nights are also anticipated to decline by an additional 2.8% in 2015 with occupancies just above 50%.

Looking ahead

Forster concludes: “The South African hotel market faces a number of challenges, but we are very optimistic in its ability to compete, adapt and succeed, especially as the global economy continues to improve following the recent economic uncertainty.

“Growth in travel and tourism is also expected to boost growth in the accommodation industry across the African continent during the next five years.”

PwC Hospitality outlook: 2015-2019 South Africa – Nigeria – Mauritius – Kenya

PwC’s team of hospitality specialists provide an unbiased overview of how the hospitality industry in South Africa, Nigeria, Mauritius and Kenya is expected to develop over the coming years. 

Hospitality outlook: 2015-2019 demonstrates deep knowledge of the local hospitality market and is a powerful tool for understanding critical business issues.

Mauritius: The Lion King 2.0

With the police nipping at his heels and government threatening more of the same, nobody expected former Prime Minister Navin Ramgoolam to step back into the political arena anytime soon. His appearance at Tuesday’s executive committee meeting of the Labour Party, followed by a press conference surprised many. Commented differently by various groups, lobbies and factions within the party, the event however, left no one underwhelmed.

12 May 2015

Stion and Synnove Energy partner for 4 MW project in Mauritius

Stion announced today the shipment of Stion Elevation STL 140 and 145 frameless solar modules to Synnove Energy for a 4 MW solar project on the island of Mauritius.

KPMG report reveals that Guernsey funds facilitate £25 billion of inward investment to the UK from global investors

International Capital Flows, a report commissioned by the States of Guernsey and supported by Guernsey Finance, has analysed the economic benefits provided to the UK and Europe by the Guernsey funds market.

The majority of the inward investment is deployed into long-term tangible assets, including private equity, infrastructure and commercial property. All of these asset classes can provide economic and social benefits to the UK.

The report estimates that European investment managers earn £1.8bn of fees from managing Guernsey funds, of which £1.1bn is earned by those in the UK. UK investors, such as pension funds, also benefit from using Guernsey as it gives them a far wider access to investment opportunities outside of Europe. The report concludes that Guernsey is used as a conduit for international capital flows, bringing together investors from many different countries and facilitating their access to global assets.

The report was written by Head of Advisory Ashley Paxton and Advisory Senior Manager Antony Prynn, both from KPMG in the Channel Islands. Data was provided by local investment managers and administrators and interviews were conducted with London-based industry experts including lawyers, LSE sponsors and investment managers.

Ashley Paxton commented “We are delighted to have been involved with International Capital Flows, and to have the opportunity to utilise our experience, expertise and network in the funds market to analyse the benefits that the flow of investment capital through Guernsey brings to the UK, European and global economies”

Deputy Kevin Stewart, Minister for the Commerce and Employment Department, said: “The picture that has been built up will ensure a greater understanding of the funds sector, and of Guernsey as an international finance centre. Over the coming weeks and months we will be using the analysis in our meetings in London and Brussels, and with governments, regulators and international bodies – indeed, we are already doing so.

“Guernsey is a partner of the UK and Europe's growth and prosperity agenda, and this report emphasises that partnership.”

Dominic Wheatley, Chief Executive of Guernsey Finance, said: “The report demonstrates Guernsey’s expertise as a funds centre and as a facilitator of global investment into the UK, European and global economies – a message we have been delivering for a number of years. The investment Guernsey facilitates into the UK and elsewhere can bring about significant economic and social benefits to those economies. It is also interesting to note the scale of internationalism of the funds industry itself with 90% of the £1.8 billion fees generated from Guernsey domiciled funds going to EU service providers.”

KPMG in the Channel Islands is the market leader in the Guernsey funds sector, auditing 46% of funds by NAV according to the 2014 Monterey statistics and providing a full suite of audit, tax and advisory services.

Mauritius International Financial Centre

Marc Hein provides a general update on Mauritius in light of its new government and the new Ministry of Corporate and Financial Services. He looks at a few sectors which could be reactivated, for example captive insurance, and aircraft and shipping finance, provides an update on DTAs, and touches on Mauritius as a platform into Africa.  He reflects on Mauritius’ efforts in trying to position itself as an international arbitration centre. 

Proactive Guidance Needed to Help Entities Meet FATCA Deadlines

In this article for the China Business Law Journal, DMS Director and Global Head of the International Tax Compliance Group Roman Ipfling discusses FATCA reporting deadlines and the need for some jurisdictions to provide more guidance.

11 May 2015

Mauritius - BOM Governor: “There was no silver bullet left to save the Bramer Bank”

The Governor of the Central Bank sat down for an exclusive interview with l’express on the still unfolding Bramer/BAI saga. Ramesh Basant Roi details the sequence of events leading to the revocation of the license of the Bramer Bank.



WSJ: U.S. Lawyers Are A Money Laundering Blindspot, Some Argue

U.S. authorities on Friday announced a settlement with Vadian Bank AG, the second institution to reach a deal under a program that allows Swiss banks to come clean on American tax dodgers in exchange for avoiding prosecution.

Mauritius: Mauritian Diaspora Scheme

The Government of Mauritius strongly believes that the dispersed professional Mauritian community constitutes precious resources because of their knowledge, expertise, talents and experience in cutting-edge fields which can boost national growth. Therefore, necessary conditions have been defined to encourage Mauritian professionals who have worked for a minimum of ten years abroad to return home. Benefits comprise:

  • A ten-year exemption from income tax on all their income inclusive of external sources of income.
  • Exemption from payment of customs duties of up to a maximum of MUR 2 million on a car that can be purchased in Mauritius or abroad.
  • Entitlement to bring back their personal belongings without payment of customs duties or VAT. All holders of a Mauritian passport as well as their children, whether they have a Mauritian passport or not, will be eligible to apply. Those who do not have a Mauritian passport will be granted a permanent residence permit.

09 May 2015

Forbes: Why Hedge Funds Love To Go Offshore

Hedge fund titan George Soros reportedly amassed $13.3 billion in deferred hedge fund fees and investment gains on those fees by moving his assets to Ireland and then to the Cayman Islands. Hedge funds love to set up shop offshore. And it’s not because of the weather. Setting up a fund offshore has many advantages and is not as hard as you may think, says Gordon Casey. He is the managing director of Front Shore, a hedge fund consulting firm in the Cayman Islands, and author of The Cayman Edge: How to Set Up a Cayman Fund.

The Economist - Crowdfunding: Cool, man

Bankers are conservative types. It is hard to imagine any of them jumping at the opportunity presented by Ryan Grepper, an Oregon-based “part visionary, part mad scientist, and a passionate supporter of the DIY revolution”, to lend him $50,000 to develop an oversized picnic cooler. Not just any cooler, mind you, but The Coolest, which beyond keeping drinks chilled also blends them, blares music and recharges gadgets.

08 May 2015

Belvedere Management and its $16Bn: Now Looking More Like a Huge Collapsing Scam

Back in March, Offshore Alert made some very aggressive but plausible-looking claims:

Offshore fund group Belvedere Management, which claims to have $16 billion of assets under administration, management and advisory, appears to be one of the biggest criminal financial enterprises in history, headed by David Cosgrove, Cobus Kellermann and Kenneth Maillard, OffshoreAlert can reveal.
  • $130 million Cayman Ponzi scheme under Brighton SPC umbrella fund
  • City of London police investigating £100 m-plus Ponzi scheme by ‘CWM’
  • Both schemes part of rampant fraud by Belvedere Management Group
  • Group headed by David Cosgrove, Cobus Kellermann and Kenneth Maillard
  • Belvedere operates in many countries, particularly Mauritius, Guernsey, Cayman & South Africa
In early April, we wrote up the madly impudent CWM scam here, filled in as much as we could of the Belvedere back story here, and sat back to await developments. On the 18th, the story flickered briefly in The Economist

Naked Capitalism

Mauritius: After Bramer Bank, the Mauritius Post and Cooperative Bank (MPCB) in a precarious financial situation

The Cabinet of Ministers has taken note of the precarious financial situation of the Mauritius Post and Cooperative Bank (MPCB) Ltd and agreed to immediate measures being taken to protect the customers, depositors, and the employees of the Bank with a view to maintaining the stability of the financial system.

Financial services: The fintech revolution

In the years since the crash of 2007-08, policymakers have concentrated on making finance safer. Regulators have stuffed the banks with capital and turned compliance from a back-office job into a corner-office one. Away from the regulatory spotlight, another revolution is under way—one that promises not just to make finance more secure for taxpayers, but also better for another neglected constituency: its customers.

06 May 2015

Ile Maurice : Dirigisme financier

Si la Banque de Maurice parle d’habitude de « market adjustment » en matière de taux de change de la roupie, en revanche elle demeure dirigiste sur le plan de la défaillance bancaire.

PARADISE LOST : The mind is its own place, and in itself can make a heaven of hell, a hell of heaven

Étonnant quand même ce pays en proie au spleen qui tranche singulièrement avec le « printemps » qu’annonçait l’issue des élections générales de décembre 2014. Un bulletin glissé dans l’urne devait déjouer tous les pronostics, emportant dans son sillage le verbiage censé nous propulser dans et par l’alliance du progrès et de modernité...

04 May 2015

FSC appoints Special Administrators for the BAI Co. (Mtius) Ltd

The Financial Services Commission (FSC) has appointed Messrs Mushtaq M. O. Noormohamed Oosman, FCA, and Yogesh Rai Basgeet, ACA, as Special Administrators of the BAI Co. (Mtius) Ltd and any of its related companies with effect from Friday 1st May 2015.

The appointment follows the passing of the Insurance (Amendment) Bill at the National Assembly on Tuesday 28 April 2015 which, among others, enables the Minister to request the FSC to appoint a special administrator where he is satisfied, on the basis of a report submitted by the Commission, that the liabilities of an insurer and any of its related companies exceed its assets by at least one billion rupees and that such excess is likely to be a threat to the stability and soundness of the financial system of Mauritius.

Debating on the bill at the National Assembly last Tuesday, the Minister of Financial Services, Good Governance and Institutional Reforms, Mr Sudarshan Bhadain, recalled that since 03 April 2015, the country has witnessed the downfall of a major insurance company in Mauritius, BAI Co. (Mtius) Ltd, which is affecting the lives of over 160,000 citizens. He said that these events clearly highlighted certain loopholes in the Insurance Act, which have been exploited to the detriment of policyholders. The objective of the Insurance (Amendment) Bill, stressed Mr Bhadain, is precisely to bring urgent remedial actions to plug these loopholes for the immediate protection of insurance policyholders.

The Minister is of the view that the amendment will strengthen the protection afforded under the Insurance Act to policy holders, by the appointment of a ‘special administrator’ in cases where the liabilities of an insurer and any of its related companies exceed its assets by at least Rs 1 billion. He added that this measure will safeguard the soundness and stability of the financial system in Mauritius.

According to Mr Bhadain, the Insurance (Amendment) Bill is the first initiative which will kick-start a process of legislative reforms and will go a long way to improve the Financial Services Sector. He stated that the Insurance Act, the Insolvency Act, the Financial Services Act and all other legislations or regulations which touch upon the Financial Services sector will thoroughly screened. “We are going to come up with the perfect legislations for our financial system to operate”, he added.

It is to be noted that the Insurance (Amendment) Bill was passed with an overwhelming majority on Tuesday 28 April 2015. The amendment to the Insurance Act provides, among others, for the Financial Services Commission (FSC) to exercise more effective supervision over related companies of an insurer. The amendment also makes provision for the transfer of undertaking, in whole or in part of an insurer and any of its related companies, to another insurer and any of its related companies.

Moldova: Lost Billion Saga

Interesting read while awaiting nTan report on the Mauritian Mega Ponzi, the Kroll report on the massive banking fraud in Moldova describes the bafflingly complex web of transactions which ended with US$1 billion going missing within 3 days and 3 crippled banks under the control of the central bank. The state was forced to step in to bail the banks out - protecting depositors but creating a hole in the public finances equivalent to an eighth of GDP.

The Kroll report was made public by the Speaker of Parliament, Adrian Candu, on his blog:

Am decis să public raportul Kroll şi îmi asum responsabilitatea pentru această acţiune. O fac deschis, fără să mă ascund după surse anonime. ‎Dezbaterea pe această temă capătă accente false. Deja am văzut aşa zişii formatori de opinie ai unui partid, care se lansează în supoziţii şi minciuni cu o maxima laşitate.

Voi publica acest raport exact aşa cum l-am primit, în forma lui originala, în limba engleză. 
Ca politician, consider că opinia publică trebuie să aibă acces la acest document, plătit din banii cetăţenilor, să-l analizeze şi să înţeleagă mai bine ce s-a întâmplat în ultimii ani la BEM.

Ca fost specialist al unei companii de audit, înţeleg argumentele celor de la Kroll de a nu accepta publicarea, dar situaţia din Moldova şi responsabilitatea noastră faţă de a fi transparenţi cu cetăţenii, ne obligă să ne adaptăm deciziile la realităţile momentului şi la nevoia de a fi cât mai transparenţi pe un subiect care necesita clarificări cat mai urgente şi acţiuni decisive pentru recuperarea prejudiciului şi pedepsirea vinovaţilor.

Intenţionam să prezint acest raport mâine societăţii civile şi jurnaliştilor cu profil economic, însă consider că important este ca fiecare cetăţean să aibă acces la acest raport. 

Mauritius FSC suspends Belvedere’s management licence

On Friday the Financial Services Commission (FSC) in Mauritius issued a notice that it had suspended the management licence of Belvedere Management Ltd with immediate effect.

The Smoking Gun? GFSC explains how Kellermann manipulated Belvedere funds’ NAVs

Policemen often talk about finding a “smoking gun”, that piece of evidence which proves a suspect’s guilt. In the complex financial services sector, smoking guns can take years to uncover. If the perp has the cunning of a Bernie Madoff, it only happens once the criminal scheme unravels.

03 May 2015

Guernsey Financial Regulator: How Kellermann manipulated Belvedere funds’ NAVs

A dynamite affidavit from the Guernsey Financial Services Commission shows how the Belvedere kingpins committed the worst crime a money manager can commit.

Authorities explore Belvedere kingpin Cosgrove links to R365m CWM FX scam

Belvedere kingpin David Cosgrove is being investigated for his apparent connection to CWM FX, a London-based scam which cost investors over R365m (£20m).

02 May 2015

Adani gilded lily is far from rolled gold

Adani Mining in Australia is owned by an Adani company in Singapore, which is in turn owned by an Adani company nestling off the coast of West Africa in La Republique de Maurice.

"Are you aware of the effective tax rates in Mauritius," Adani's financial controller was asked in court. "No, I don't know," replied Rajesh Gupta.

"I suggest it's 3 per cent," said the interrogating lawyer.

Gupta: "OK."

FSC Mauritius: Position of Chief Executive

Post of Chief Executive

The Commission is inviting applications from high calibre professionals for the position of Chief Executive. The appointed person will have the ultimate responsibility to ensure that the strategic objectives and operational goals of the Commission are achieved whilst providing strategic leadership direction to staff of the Commission.

Candidates need to possess relevant regulatory experience and a good understanding of working with a wide and diverse group of stakeholders.

Employment will be on a contractual basis for an initial period of 2 years.

Benefits comprise of an internationally attractive remuneration package, which will commensurate with qualifications and experience.

For further information and a detailed Position Description, log on to the Commission’s website (Careers Section)

Closing date for applications is 25 May 2015.

The Commission reserves the right:
  • To call only the best qualified and experienced candidates for the selection exercise; and
  • Not to make any appointment as a result of this advertisement.

Financial Services Commission
2 May 2015

IFC Review: The Big Debate

Does the current debate over what is 'acceptable' tax planning make Judge Learned Hand's famous opinion on the right of a tax payer "to arrange his affairs so that his taxes shall be as low as possible" obsolete?

01 May 2015

An assessment of the state of the world economy

Complex forces are shaping macroeconomic evolutions around the world. In this column, IMF’s Chief Economist Olivier Blanchard describes some of these forces and provides an overview of the state of the world economy. Putting the forces together, the baseline forecasts are that advanced countries will do better this year than last, and emerging countries will slow down. Overall, the global growth will be roughly the same as last year, with the macroeconomic risks having slightly decreased.

The Economist - Finance and economics: What's wrong with finance

Both financiers and economists still get the blame for the 2007-2009 financial crisis: the first group for causing it and the second for not predicting it. As it turns out, the two issues are connected. The economists failed to understand the importance of finance and financiers put too much faith in the models produced by economists.

IFC Review: BEPS – Historic Reforms

Pascal Saint Amans provides an overview of recent developments regarding the OECD's historic reforms to tackle base erosion and profit shifting.

Net Asset Value of funds domiciled in Mauritius

The funds industry in Mauritius witnessed a number of changes in recent years. The FSC Mauritius became signatory to the Memorandum of Understanding with the European Securities Markets Authority and amendments were brought to the regulatory framework to enhance the competitiveness of the Mauritian jurisdiction.

The Net Asset Value (‘NAV’) of the funds domiciled in Mauritius amounted to USD 65 billion for the year 2013 in relation to 777 investment funds (430 collective investment schemes and 347 closed-ended funds*).

For the year 2012, the 700 investment funds reviewed reported a NAV of USD 58 billion and comprised of 415 collective investment schemes and 285 closed-ended funds.

The chart below demonstrates the NAV per category of funds for 2012 and 2013:

*The number of funds reported relates to the number of funds’ accounts reviewed