September 6 2023
The inaugural African Property Investment (API) Summit Mauritius which will take place on September 14 2023 at the Ravenala Attitude Hotel in Turtle Bay, is set to draw an assortment of professionals, investors and other talented people who work across real estate. Experts from the industry will give presentations highlighting the remarkable economic growth and development across this island.
Mauritius may be an African tourism hub with its idyllic beaches, lush forests, volcanic mountains and unique wildlife but the country’s economy has become more sophisticated and varied. The post-Covid19 recovery has actually been remarkable with different industries finding their stride.
Last year saw foreign direct investment (FDI) in Mauritius reach 27 billion Mauritian Rupees (Rs27bn), its highest level in five years, with France and South Africa serving as the primary market sources, and of this, 54.7% of the FDI was through real estate. These figures make for good reading.
Mauritius really is shining brighter supported by leadership which has made it far easier to open businesses than in previous years. Prime Minister Pravind Jugnauth has made notable reforms which have improved the ease of doing business in the country, helping to create jobs and to generate economic activity. His government has made Mauritius more open to trade with the likes of the US and SA.
Wayne Godwin, Head of East Africa and Hotels & Hospitality at JLL believes the optimism in Mauritius is supported by strong trends.
“Mauritius is holding its own and impressing because its economy is more diverse and is attracting more varied and deeper investment than analysts and business owners thought possible,” he says.
For an island nation with 1.266-million people, Mauritius is punching above its weight in East Africa.
“Much of the capital which is chasing Sub-Saharan Africa is actually domicile in Mauritius. New businesses are operating from this exciting market. They are either operating from the country and doing business in the region or they are focussing their investments on the country itself and reaping the rewards,” says Godwin.
Dynamic investors are creating new projects in Mauritius. There are smart city schemes in place for example which will generate jobs and lead to the development of varied property types.
Smart city schemes are in place on the island as developers create business and living hubs. More offices are also being developed especially for multinational groups who want to have a presence in Mauritius.
The industrial and logistics property markets are also attracted attention in Mauritius. Data centres are being built at competitive prices. These can serve markets beyond Mauritius.
The logistics opportunities stand out for savvy developers. The ease of transferring goods on and off the island has also improved.
Bloomage Property Fund CEO Robin Hardin says Mauritians can be proud of how their country has not only recovered from the worst of Covid-19 but its economy is actually attracting more investment prior to the pandemic.
“As per latest estimates, foreign direct investment is some 30% above 2019 levels, which demonstrates that the country has bounced back from the COVID-19 pandemic and remains an attractive destination for investors,” says Hardin.
Bloomage is a subsidiary of IBL, a group which has invested in nine industries across more than 18 countries.
“Mauritius’ strategic location with proximity to both Asia and Africa, together with political stability, business-friendly policies, tax incentives and treaties and trade agreements are invariably key attributes to investors. In addition, we continue to diversify the economy with finance, technology, hospitality and healthcare gaining prominence. This economic diversification has attracted a diverse range of investors looking to capitalise on these opportunities,” he says.
There have been notable investments in infrastructure development, including transportation networks, roadways, and utilities. These improvements have enhanced the overall connectivity of the island, making it more accessible and attractive to investors.
“In summary, Mauritius has pursued a combination of measures to attract investment and has successfully positioned itself as an appealing destination for investors seeking diverse investment opportunities and a conducive business environment,” says Hardin.
The government’s focus on investment in the green economy including renewable energy schemes, floating solar PV systems, and the development of a pump storage hydropower plant also bodes well for Mauritius. The country wants to achieve a renewable energy mix of 60% by 2030.
Godwin says Mauritius managing to get off the grey list has also impressed capital allocators across emerging markets.
The country exited the list in 2021 and was among the first countries in the world to have exited it before the deadline set by the Financial Action Task Force (FATF). The country was also rated compliant with 39 of 40 FATF recommendations in 2021.
“It shows that Mauritius’ public and private sectors are serious about investment, trade and tourism. They want to comply with international standards so that they can guarantee long-term investment,” says Godwin.
While a variation of industries is adding fuel to its economy, tourism is Mauritius’ best known economic driver.
“The tourism industry has largely recovered, thanks to foreign visitors. This is a stunning island and people from the world over are learning about its attractions and wanting to visit. The Mauritius Investment Corporation (MIC) was a big help here, providing long-term loans to businesses so they can set up resorts which create thousands of jobs,” says Godwin.
The MIC is a strategic investment accelerator which was created during the pandemic.
There was uncertainty over the duration and depth of the pandemic so the Bank of Mauritius set it up in June 2020 to guarantee momentum in the economy throughout the pandemic and beyond. Tourism businesses embraced the MIC and the results were pleasing.
The industry rebounded to pre-Covid levels of around Rs64bn. Beaches are full and many hotels have waiting lists.
Mauritius is also ripe with new property development opportunities.
“There is current a strong focus on smart cities and urban centres as hubs for economic activity, technology, and sustainable living. These offer opportunities for mixed-use developments, including residential, commercial, and recreational spaces, catering to both local and international residents,” says Hardin.
The changing dynamics of the societies and economies underpinned by technological advancements, demographic changes, changing work patterns and consumer behaviour are driving the rise of alternative real estate asset classes.
“Mauritius is no exception, and we will increasingly see property development opportunities in asset classes such as affordable housing, student housing, data centres, healthcare, and senior living, to name a few,” he says.
As Mauritius moves closer towards sustainable real estate practices, there will also be increased scope for the repurposing or adaptative re-use of existing buildings.
“By reusing or repurposing existing buildings, resources and embodied carbon already invested in them are preserved and there is less construction waste. These often equate to a lower environmental impact than if a new building were constructed. Bloomage recently rose to the challenge of repurposing an old unused building into a state-of-the-art ambulatory healthcare facility,” Hardin says.
Both Hardin and Godwin will speak at the API Mauritius Property Forum on September 14 2023.
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The inaugural API Mauritius Property Forum will take place on September 14 2023 at the Ravenala Attitude Hotel in Turtle Bay, Balaclava, Mauritius.
For more information about API Mauritius Property Forum, visit https://www.apievents.com/mauritius/
