STEP MAURITIUS CONFERENCE 2013

Transcription

1 Speech by His Excellency the President of the Republic of Mauritius on the occasion of the Official Opening at the STEP MAURITIUS CONFERENCE 2013 Le Meridien Hotel, Mauritius 09 April 2013

2 1 Mr. Nick Jacobs, Deputy Chairman STEP Worldwide Mr. Shameem Abdoolakhan, Chairman STEP Mauritius Distinguished Guests and Participants Ladies and Gentlemen It is my pleasure to be here this morning in the midst of a host of professionals and experts of the Financial Services Sector. I thank STEP for having invited me to address you this morning on a subject that is shaping and redefining the world of global finance. I take this opportunity to extend a hearty welcome to all the participants, resource persons, and delegates who have taken time from their busy schedule to travel to Mauritius for this event. In spite of a heavily loaded 2-day agenda, I trust you will find the necessary time, to visit some of the exotic places in Mauritius, and to take a glimpse of our multi-cultural society. I am no expert in wealth and assets management. Still less in financial services. I will therefore not venture to substitute myself to the distinguished panel of experts who shall be addressing you over the next couple of days. I am sure the panelists who are experts in their own right will provide you with an in-depth insight on the mechanics of private wealth management services, the latest trends and developments as well as the unfolding international opportunities in the field. However, I would like to share with you my thoughts on why I believe that our country has all the ingredients to become a focal point for private wealth management services in the region. This Conference has brought together a whole panoply of top professionals. In my view, this is enough testimony that Mauritius is already on the map of international financial services in the region. From relatively humble beginnings in 1998 when the Government of the day allowed the establishment of offshore banks, financial services have grown remarkably well over the years. The financial services sector, as you may already know, is now one of the main pillars of the Mauritian economy accounting for nearly 11% of our GDP.

3 I should stress that successive Governments have spared no effort to consolidate and diversify the financial services sector, given its importance as a driver of growth and development. For example, much effort has been made to: maintain financial stability; ensure that there is in place a strong, effective and predictable regulatory framework for financial services to flourish; improve the business infrastructure and the business environment in order to facilitate and ease the process of doing business in Mauritius; introduce new products such as the Limited Partnership and the Private Foundation to ensure that Mauritius continues to remain a competitive jurisdiction. We have also been proactive to enhance our reputation as a transparent, clean and safe jurisdiction for global business. And here, I wish to re-assure you all, especially, the representatives of the financial and business community that Government will leave no stone unturned to maintain and uphold the reputation of Mauritius as a respected and reputable jurisdiction. As you may be aware, some OECD countries were holding international financial centers as being partly responsible for the global financial crisis, even threatening to put them on the black list In Mauritius, we made our case with actions on all fronts, including the strengthening of the legal and regulatory framework and through the increasing use of economic diplomacy. Government has amended the Income Tax Act to allow for an exchange of information on persons who are not tax residents so as to keep money launderers off our jurisdiction. On the other hand, the Financial Services Commission (FSC), the Regulatory Body, has enhanced its processes for securing proper and adequate information on those who do business in our jurisdiction. The FSC is also in a better position now to create better capacity to exchange information with foreign authorities whenever required. With the right policy responses and economic diplomacy, we have averted what could have been a severe blow to our global business center the blacklisting of Mauritius as a tax haven by the OECD. 2

4 Not only have we averted from being blacklisted, most importantly, Mauritius have been placed on the white list of clean, transparent, cooperative and compliant jurisdictions. Following the Eurozone crisis, Mauritius has wasted no time in tapping the enormous potential offered by the African continent which is bursting with investment opportunities. With a rapidly improving economic environment, a genuine effort to curb corruption, favourable demographics (70 % of the population is under 35), and a growing and vibrant private sector, Africa is becoming the new Eldorado, also called the final frontier by private equity investors. On Thursday last, I read a very interesting article from Le Monde reproduced in one of our dailies confirming the rise of Africa in this 21 st Century. It is said in the article that since the year 2000, Africa has been registering a growth rate of 5.5%. It is expected that the Continent will reach a growth level of 6.2% in Nigeria and Cote d Ivoire, for example, have posted a growth rate of 7.4% and 8.5% respectively. In some African countries, the per capita incomes have even exceeded those of the BRIC countries. This is why I believe that Africa offers huge potentials and opportunities for our business and financial services sector. In this regard, the newly created Africa Centre for Business Excellence by Government and that operates under the aegis of the Board of Investment should provide the perfect platform for the launching of investment initiatives in Africa through Mauritius. Mauritius is a member of the major African regional organizations such as the Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA). Our membership to such organisations offer preferential access to the African market. Also, as a signatory of all the major African conventions, Mauritius constitutes the best financial hub for the establishment of funds and other vehicles for investment into Africa. I am made to understand that the number of High Net Worth Individuals is on the rise, especially, in the BRIC countries as well as in Africa. 3

5 The article from Le Monde that I referred to earlier mentions that the African Continent is host to 35 billionaires and more than 2,500 millionaires. There is therefore an increasing demand for sophisticated financial solutions and expertise. Given the instability and uncertainty in the financial markets around the world, especially, in Europe, Africa represents an excellent destination for the development of wealth management investments. But this will imply a paradigm shift in the way that High Net Worth Individuals manage their wealth so as to create new opportunities for international financial centers which no doubt have the breadth and depth to manage complex multi-jurisdictional cross-border transactions in the most cost-effective way. And this is where Mauritius can become a key player in the region. We are already a fully established financial center with a proven excellent track record. We have the legal, regulatory and tax infrastructure. Most importantly, we have the geographical and cultural proximity with Africa. We are in fact part of Africa. You should consequently make the most of these attributes. And it is my earnest wish that this Conference stimulates interesting debates and provides inputs that may assist the authorities concerned to chart a roadmap for Mauritius as Africa s Leading Wealth Management Centre. Ladies and Gentlemen Distinguished Participants Let me conclude by saying a few words on the Society of Trusts and Estate Practitioners who are our hosts to-day. I was not aware until I was approached by the Mauritius Branch of STEP that there existed an association which was exclusively dedicated to the Trusts and Estates sector. I have to admit that when I stepped inside, I was truly impressed, first by the sheer size of this society, and its global footprint. I note that STEP has over 18,000 members across 80 jurisdictions but also by the extent of its offering, namely, the gamut of professional courses that it offers, the quality of its publications and international 4

6 conferences, and its involvement in international consultations on matters relating to the trust and estates industry. I am also told that we have a very dynamic branch of STEP in Mauritius comprising nearly 200 members. It would be remiss on my part if I did not praise this laudable initiative and congratulate STEP for their outstanding contribution in the field of trust and estates. I commend their achievement and wish them continued success in their endeavour. With these words, I wish to reiterate my appreciation for your invitation this morning. I have the pleasure now to declare open this 2-day International Conference. I thank you for your attention. 5