Name: How Mauritius is emerging as a global financial services hub
Uploaded: 2023-09-20T16:01:03.026Z
Duration: 1292.84
Description: At the Finovate Fall 2023 conference in New York, FinTech Futures spoke with Mahen Kumar Seeruttun, Minister of Financial Services and Good Governance for Mauritius, about how the country has evolved over recent years as an international financial services centre and how the government has looked to foster the growth of the sector.

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{{00:00:05}}
This is FinTech Futures at Finovate
Fall and I'm joined by Mahen Kumar

{{00:00:10}}
Seeruttun, Minister of Financial Services
and Good Governance for Mauritius.

{{00:00:12}}
Mohen, welcome.

{{00:00:14}}
Thank you.

{{00:00:15}}
Excellent.

{{00:00:15}}
Thank you so much for coming
along and talking to us.

{{00:00:17}}
To get started, would you like to give
us a quick introduction to yourself and

{{00:00:20}}
the work that you're doing at the moment?

{{00:00:22}}
I'm the Minister of Financial Services
and Good Governance for Mauritius.

{{00:00:26}}
A politician for the last 20 years.

{{00:00:28}}
I'm a member of the National Assembly for
the last, 15 years, and I was previously

{{00:00:34}}
the Minister of Agro Industry, look
after Agriculture, and since 2019, I

{{00:00:40}}
have been given the responsibility of the
Financial Services and Good Governance.

{{00:00:45}}
So we, mainly, it's to do with all
non banking financial sector, that

{{00:00:50}}
is, Insurance, reinsurance global
business sector to do with wealth

{{00:00:58}}
management fund management so pensions,
all non banking financial sectors.

{{00:01:02}}
That's my portfolio.

{{00:01:03}}
And also look after good governance,
which is something that we want to promote

{{00:01:06}}
further and further in terms of beautiful.

{{00:01:09}}
For public, but also for
private organization as well.

{{00:01:12}}
Excellent.

{{00:01:12}}
To start then, can you tell us a bit
more about how Mauritius has evolved then

{{00:01:15}}
as an international financial services
center and what you've been doing there?

{{00:01:19}}
Mauritius has only last year we
celebrated the 30 years of our IFC.

{{00:01:25}}
In fact if you look at the history of
Mauritius, ever since the 17th century

{{00:01:32}}
we've had Always Europeans going to Asia
using that Mauritius route, because at

{{00:01:38}}
that time they were traveling by sea, so
they had to stop over in Mauritius, and if

{{00:01:44}}
I can say since that time, Mauritius was
a hub in terms of payments and settlement

{{00:01:49}}
hub, and of course for traders, but
when you look at the past kind of 50, 55

{{00:01:56}}
years since we got independence in 1968.

{{00:01:59}}
We have over the years, developed
and diversified our economy.

{{00:02:06}}
We used to be a very monocrop economic
sector, mainly sugar production, at

{{00:02:12}}
the time that we got independence.

{{00:02:14}}
But over the years we have
moved on to new sectors, and the

{{00:02:19}}
financial sector is one sector.

{{00:02:21}}
In fact, in 1992, we came up with
a new piece of legislation, which

{{00:02:27}}
is the Mauritius Offshore Business
Activities Act that was enacted.

{{00:02:34}}
And that's when we set up the Mauritius
International Financial Centre.

{{00:02:39}}
And in 2001, then we created what we call
the Financial Services Commission, which

{{00:02:46}}
is a regulator that regulates all those
activities within this financial space.

{{00:02:51}}
And if you look around how we have evolved
over the years with new products, new

{{00:02:57}}
services to adapt with new situations.

{{00:03:01}}
And I can say one thing is that today
Mauritius has become a very known IFC in

{{00:03:06}}
the region, but also for the global world.

{{00:03:09}}
Why is that?

{{00:03:10}}
Because we have already been on
the forefront in terms of bringing

{{00:03:14}}
up new legislations to adapt with
new situations and also come up

{{00:03:18}}
with new products and new services.

{{00:03:20}}
I can say that today Mauritius has a
very large pool of talented people in

{{00:03:26}}
this sector that service that industry.

{{00:03:28}}
And like I said, for the last 30 years
that we have been in this particular

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sector, so we have built up a track record
and we have, of course investors from

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all over the world, mainly Europe and U.

{{00:03:42}}
S.

{{00:03:43}}
that have used Mauritius as a platform
for cross border investment into a budget

{{00:03:49}}
recently in the Indian market as the main
market because we had a very attractive

{{00:03:55}}
treaties tax treaties with India.

{{00:03:58}}
But as now we see more and more investors
looking into Africa as a place to be

{{00:04:05}}
for investors and using Mauritius as a
platform for channeling the investment.

{{00:04:10}}
Why Mauritius?

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Because, like I said, we have a
number of double taxation treaties

{{00:04:16}}
with over 30, 39 countries.

{{00:04:22}}
And also IPPAs, Investment Promotion
and Protection Agreements that we

{{00:04:25}}
have with westward 20 countries.

{{00:04:27}}
So it gives another layer of security
when it comes to investment into

{{00:04:31}}
those countries where we have
that those kind of agreements.

{{00:04:34}}
And I can say most just today in terms
of compliances as well, we are fully

{{00:04:39}}
compliant with all the the standards
set, beat with the Financial Action

{{00:04:44}}
Task Force that sets all the norms
with regard to AML CFT standards.

{{00:04:50}}
And I can say Mojici is one of the
few and the only one in the African

{{00:04:54}}
region that is compliant on all the
40 standards set by the FATF, that

{{00:05:00}}
is the Partial Action Task Force.

{{00:05:02}}
And when it comes to to the fiscal regime
as well OECD, which is the internationally

{{00:05:10}}
recognized institution that sets the
standards for for tax matters, and for

{{00:05:15}}
that as well, we are fully compliant with,
All the requirements set by the OECD.

{{00:05:19}}
On those two issues, so we are
fully complied, that gives an extra

{{00:05:24}}
comfort and kind of it secures all
the the investors who are looking at

{{00:05:29}}
Moetius as a place to do business.

{{00:05:32}}
And over and above that, I can
tell you one thing, is that

{{00:05:35}}
Moetius is signatory to a number of
agreements, free trade agreements.

{{00:05:40}}
In fact, we are the only African
country to have a free trade agreement

{{00:05:45}}
with China and also with India.

{{00:05:48}}
And of course, there is the African
Continental Free Trade Agreement

{{00:05:53}}
that we are also a member of that.

{{00:05:56}}
All in all, when you look at those three
main agreements of free trade agreements

{{00:06:01}}
that we have, it opens up access to a
big market of over 4 billion consumers.

{{00:06:09}}
Over and above that, we have also an
FTA with the EU and also with the UK.

{{00:06:14}}
Like I said it opens up
access to those big markets.

{{00:06:18}}
And one thing I can tell you is that
Mooshes we have the right ecosystem

{{00:06:21}}
in place in terms of legislation
that we have to secure investments.

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There's no capital restrictions.

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You can move in and out your investment.

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We have a very, strong legal system,
very independent, and our highest court

{{00:06:38}}
of appeal is the Privy the highest
court of the UK, which is the Privy

{{00:06:43}}
Council, and so if ever there is any
kind of dispute, you can go up to that

{{00:06:48}}
court to seek any anything that you
you feel that you are deprived of.

{{00:06:52}}
And also, In terms of our banking
system, it's a very strong

{{00:06:57}}
banking system that we have.

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Mauritius having been once a French
colony, and then a British colony,

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so we have inherited both the French
legal system, which are called civil,

{{00:07:10}}
and also the English common law.

{{00:07:12}}
So we have a unique kind of legal system,
which is what we call a hybrid system.

{{00:07:17}}
Both English and French system of,
legal system, so we can converse both

{{00:07:22}}
with the French speaking countries and
also with English speaking countries.

{{00:07:28}}
And and because we were once, like I said,
a French and a British colony, so we have,

{{00:07:35}}
we are bilingual, so we can speak both
the French and English language, which

{{00:07:40}}
is the two most commonly used languages.

{{00:07:43}}
I know here, Spanish is very strong as
well, but to tell you that, in our region,

{{00:07:49}}
we can, of course, when we talk about
Africa, you have some French speaking

{{00:07:54}}
countries in Africa and also English
speaking countries, so we, for us to work

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with those countries, it's much easier.

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I think today we have developed
our financial center to

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something which is quite robust.

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Like I said, in terms of we have
the right framework in place, and

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FinTech is one area where we are also.

{{00:08:15}}
In fact since 2018, we have started to
promote FinTech in Mauritius, and we

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came up with a sandbox regulatory license
that we offered to all those who are

{{00:08:27}}
willing to venture into that new space
of, FinTech and since we created what we

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call the Mauritius Africa FinTech Hub.

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at least to promote FinTech in the region.

{{00:08:41}}
And since then we have come up with
a number of initiatives to keep on,

{{00:08:45}}
promoting activities in that space.

{{00:08:49}}
In fact the latest legislation that we
introduced was the, what we call the

{{00:08:53}}
VITOS, which is a Virtual Assets and
Initial Token Offering Services Act

{{00:08:59}}
that we enacted that would regulate All
activities within the digital asset space.

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So this is probably the only
country in the African region

{{00:09:09}}
that has that kind of legislation.

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And it's all complied
with the AML CFT issues.

{{00:09:20}}
So today we are are willing to
promote even further because,

{{00:09:24}}
new technologies is everywhere.

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We stay whatever we do in our
day-to-day life today, we see new

{{00:09:32}}
technologies and of course in the
finance space as well it's there.

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So that's why we wanted to create the
right ecosystem in Mauritius to attract

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more investments in that new space.

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And that is why we have the
ambition to create what we call

{{00:09:47}}
a Fintech City in Mauritius.

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And we are, of course seeking the
technical assistance of the UNECA, the

{{00:09:54}}
United Nations Economic Commission for
Africa, at least to get both technical

{{00:10:00}}
and financial support to set it up.

{{00:10:02}}
At least we can attract African
startups, and also to come up with

{{00:10:08}}
the right infrastructure in place.

{{00:10:11}}
To at least make them grow and who
knows, become new unicorns in the future.

{{00:10:18}}
So lots of things happening in there.

{{00:10:21}}
And that's our objective is to make
this sector grow even further in time.

{{00:10:26}}
In fact, we have one roadmap blueprint
that we have for this financial sector.

{{00:10:32}}
And our aim is to double the
contribution to our G D P by 2030.

{{00:10:37}}
And that's where we are coming up with a
number of new innovative products to at

{{00:10:42}}
least attract more and more investments.

{{00:10:44}}
So be it for wealth management, be
it for family offices, be it for

{{00:10:47}}
global share services, be it for
headquarters, global headquartering.

{{00:10:52}}
Fund management, fund structuring.

{{00:10:54}}
So a number of new products
that we have introduced.

{{00:10:57}}
Lately we came up with
variable capital companies.

{{00:11:00}}
which is very specifically designed
for those who are into fund management

{{00:11:06}}
and fund structuring, which gives
it more flexibility and also in

{{00:11:10}}
terms of cost efficiency as well.

{{00:11:13}}
So all in all, I can say that Mauritius
is also geographically well located

{{00:11:22}}
in terms of time zones, because
in a single day, you can work with

{{00:11:29}}
both the Far East and also the U.

{{00:11:32}}
S.

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Based on our time zone, so we can
early morning work with the Far

{{00:11:38}}
East, as far as Japan, and also
at night we can work with the U.

{{00:11:42}}
S.

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This gives us another plus
point when it comes to the

{{00:11:46}}
choice of working in Mauritius.

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And probably the last thing I would
like also to say is that because as

{{00:11:52}}
a safe place, I can tell you, you
can feel really safe in Mauritius.

{{00:11:57}}
Security wise there's no, no big issue.

{{00:11:59}}
We have a very stable government.

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It's politically since independence
has already a very stable country,

{{00:12:06}}
and that is why we have been able
to attract so much investment and

{{00:12:09}}
diversify in so many different sectors.

{{00:12:12}}
We are here to, to, to at least
tell the US business community

{{00:12:17}}
that Bush is open to them.

{{00:12:18}}
And please come and see what
we can do, what we can offer.

{{00:12:22}}
We have all the right ingredients
to to make things work for you.

{{00:12:26}}
And of course even though if we are
a small dot in the on the planet, we

{{00:12:33}}
are also part of the African Union.

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We have a big market into Africa,
which gives you access to that.

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And also, like I said, with...

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The FTA that we have with China and
India and the two big emerging economies.

{{00:12:52}}
So that's how we are.

{{00:12:54}}
Brilliant.

{{00:12:55}}
Yeah.

{{00:12:55}}
No, that sounds really great.

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I just want to focus in on the
FinTech side of things then.

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What are some of the biggest
trends that you've seen there in

{{00:13:00}}
Mauritius and what kind of areas
are picking up the most traction?

{{00:13:03}}
In fact, when we look at what
we have been doing ever since,

{{00:13:07}}
like I said we've got into that
transformative project into FinTech.

{{00:13:11}}
We have come up with a number of rules
to allow for, digital assets to be

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considered as an investment class.

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And also like for securities token
offerings, it is also something

{{00:13:25}}
which is have guidelines for that.

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It allows you to operate into that sector.

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We we have licensed peer to peer lending,
which is something which is very much

{{00:13:34}}
something that is taking much of traction
now in terms of access to finance.

{{00:13:39}}
And we see two big players now who
have really done well ever since they

{{00:13:43}}
started in this particular activity.

{{00:13:46}}
Today we feel that we, what we can do is
also set up incubators and accelerators.

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to attract startups to get, the right
infrastructure to be able to, develop

{{00:13:57}}
their projects so that they can grow.

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So we are putting the right kind of, I
would say the right ecosystem in place so

{{00:14:04}}
that we can attract more and more startups
from Africa and also from India as well.

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We are partnering with a number
of big institutions in in India

{{00:14:14}}
to at least work with us on that.

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And hopefully we'll see some more
things happening in this sector.

{{00:14:21}}
Excellent.

{{00:14:21}}
And which companies in particular
are making an impact in Mauritius?

{{00:14:24}}
If you look at when we talk about peer
to peer lending, there's one company

{{00:14:28}}
called Funkiss, and another one FinClub.

{{00:14:30}}
They're really the ones
that are doing quite well.

{{00:14:33}}
But also, even in the banking
sector, they have also developed

{{00:14:37}}
those accelerators and incubators.

{{00:14:39}}
I can name a few.

{{00:14:40}}
I know one, it's called the
fact Razia Bank, the bank one.

{{00:14:45}}
You have the

{{00:14:46}}
a, b, C banking corporation.

{{00:14:48}}
You have another group called
af Port Group, and a few others

{{00:14:54}}
that are really doing quite well.

{{00:14:57}}
And so we see lots of interest.

{{00:14:59}}
We as a government, we are trying to
put the right If I may say a strategy

{{00:15:06}}
in place to attract more and more
people to go into this new space.

{{00:15:10}}
Excellent.

{{00:15:10}}


{{00:15:11}}
If you were going to, you've covered quite
a few already, but if you were going to

{{00:15:13}}
name some of the key benefits then for
any FinTech founders looking at Mauritius,

{{00:15:16}}
then what would you put at the top?

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In fact, we do have a number
of incentives that we have

{{00:15:21}}
proposed, we have come up with.

{{00:15:23}}
And of course, if you want to develop
those projects, and of course, if

{{00:15:28}}
it has a research and development
component of it, then you have a

{{00:15:33}}
grant that we do give to those who are
embarking on these kind of projects.

{{00:15:40}}
And also in terms of visa

{{00:15:44}}
as well, you can have
access to a 10 year visa.

{{00:15:52}}
And of course, in terms of tax
benefits as well, the number

{{00:15:56}}
of tax benefits that we offer.

{{00:15:57}}
For that I can, of course give some more
details if you would wish to have it.

{{00:16:02}}
I can share that with you.

{{00:16:03}}
But the number of initiatives that we have
put in place that allow Those investors

{{00:16:08}}
to to take advantage of Mauritius in
that, with those type of activities

{{00:16:11}}
that we would like to undertake.

{{00:16:13}}
Excellent.

{{00:16:14}}
And just to finish off then, what
are some of the FinTech developments

{{00:16:16}}
that you personally are most
excited by in Mauritius at the

{{00:16:21}}
the setting of our FinTech City.

{{00:16:23}}
This is one thing that we are really
looking forward to, to put in place.

{{00:16:27}}
And like I said, we have the the
support of the United Nation Foundation.

{{00:16:33}}
Economic Commission for Africa, which
is providing us technical and both

{{00:16:38}}
technical and financial support for that.

{{00:16:40}}
So that is something that we are looking
forward to put in place very soon.

{{00:16:47}}
And also, if I can say, we are
also working towards coming up with

{{00:16:53}}
a new FinTech, national FinTech
strategy that we want to develop.

{{00:16:58}}
At least to give us some clear...

{{00:17:02}}
Road of where we want to go so that all
this, plug in together, that we can really

{{00:17:07}}
make it something that would develop
further our financial sector in Mauritius.

{{00:17:12}}
So this is a two thing that if I
can say something that we are really

{{00:17:16}}
looking forward to to make it happen.

{{00:17:19}}
If I make touch on one thing also,
which is I think as important we are

{{00:17:23}}
also working towards devising a an E
S G framework for the African region.

{{00:17:29}}
And we see more and more
investors looking for impactful

{{00:17:34}}
projects, so sustainable projects.

{{00:17:37}}
And we want to come up with that
framework to attract more and more

{{00:17:41}}
impactful investments into the region.

{{00:17:44}}
And this is the kind of thing that I'm
looking forward to putting in place.

{{00:17:50}}
Excellent, yeah, exciting stuff ahead.

{{00:17:51}}
Really looking forward
to seeing how it goes.

{{00:17:53}}
Mahen, thank you again so much
for coming and talking to us.

{{00:17:56}}
Pleasure.

{{00:17:56}}
Pleasure talking to you.

{{00:17:56}}
Thank you so much.

{{00:17:58}}
sonic logo

This is FinTech Futures at Finovate
Fall and I'm joined by Mahen Kumar

Seeruttun, Minister of Financial Services
and Good Governance for Mauritius.

Thank you so much for coming
along and talking to us.

To get started, would you like to give
us a quick introduction to yourself and

the work that you're doing at the moment?

I'm the Minister of Financial Services
and Good Governance for Mauritius.

I'm a member of the National Assembly for
the last, 15 years, and I was previously

the Minister of Agro Industry, look
after Agriculture, and since 2019, I

have been given the responsibility of the
Financial Services and Good Governance.

So we, mainly, it's to do with all
non banking financial sector, that

is, Insurance, reinsurance global
business sector to do with wealth

management fund management so pensions,
all non banking financial sectors.

And also look after good governance,
which is something that we want to promote

further and further in terms of beautiful.

For public, but also for
private organization as well.

To start then, can you tell us a bit
more about how Mauritius has evolved then

as an international financial services
center and what you've been doing there?

Mauritius has only last year we
celebrated the 30 years of our IFC.

In fact if you look at the history of
Mauritius, ever since the 17th century

we've had Always Europeans going to Asia
using that Mauritius route, because at

that time they were traveling by sea, so
they had to stop over in Mauritius, and if

I can say since that time, Mauritius was
a hub in terms of payments and settlement

hub, and of course for traders, but
when you look at the past kind of 50, 55

We have over the years, developed
and diversified our economy.

We used to be a very monocrop economic
sector, mainly sugar production, at

But over the years we have
moved on to new sectors, and the

In fact, in 1992, we came up with
a new piece of legislation, which

is the Mauritius Offshore Business
Activities Act that was enacted.

And that's when we set up the Mauritius
International Financial Centre.

And in 2001, then we created what we call
the Financial Services Commission, which

is a regulator that regulates all those
activities within this financial space.

And if you look around how we have evolved
over the years with new products, new

And I can say one thing is that today
Mauritius has become a very known IFC in

the region, but also for the global world.

Because we have already been on
the forefront in terms of bringing

up new legislations to adapt with
new situations and also come up

I can say that today Mauritius has a
very large pool of talented people in

And like I said, for the last 30 years
that we have been in this particular

sector, so we have built up a track record
and we have, of course investors from

that have used Mauritius as a platform
for cross border investment into a budget

recently in the Indian market as the main
market because we had a very attractive

But as now we see more and more investors
looking into Africa as a place to be

for investors and using Mauritius as a
platform for channeling the investment.

Because, like I said, we have a
number of double taxation treaties

And also IPPAs, Investment Promotion
and Protection Agreements that we

So it gives another layer of security
when it comes to investment into

those countries where we have
that those kind of agreements.

And I can say most just today in terms
of compliances as well, we are fully

compliant with all the the standards
set, beat with the Financial Action

Task Force that sets all the norms
with regard to AML CFT standards.

And I can say Mojici is one of the
few and the only one in the African

region that is compliant on all the
40 standards set by the FATF, that

And when it comes to to the fiscal regime
as well OECD, which is the internationally

recognized institution that sets the
standards for for tax matters, and for

that as well, we are fully compliant with,
All the requirements set by the OECD.

On those two issues, so we are
fully complied, that gives an extra

comfort and kind of it secures all
the the investors who are looking at

And over and above that, I can
tell you one thing, is that

Moetius is signatory to a number of
agreements, free trade agreements.

In fact, we are the only African
country to have a free trade agreement

And of course, there is the African
Continental Free Trade Agreement

All in all, when you look at those three
main agreements of free trade agreements

that we have, it opens up access to a
big market of over 4 billion consumers.

Over and above that, we have also an
FTA with the EU and also with the UK.

Like I said it opens up
access to those big markets.

And one thing I can tell you is that
Mooshes we have the right ecosystem

in place in terms of legislation
that we have to secure investments.

We have a very, strong legal system,
very independent, and our highest court

of appeal is the Privy the highest
court of the UK, which is the Privy

Council, and so if ever there is any
kind of dispute, you can go up to that

court to seek any anything that you
you feel that you are deprived of.

And also, In terms of our banking
system, it's a very strong

Mauritius having been once a French
colony, and then a British colony,

so we have inherited both the French
legal system, which are called civil,

FinTech Futures

Event Session

At the Finovate Fall 2023 conference in New York, FinTech Futures spoke with Mahen Kumar Seeruttun, Minister of Financial Services and Good Governance for Mauritius, about how the country has evolved over recent years as an international financial services centre and how the government has looked to foster the growth of the sector.