Global finance is changing.
For decades, Mauritius has positioned itself as a respected and resilient International Financial Centre (IFC), which has channelled billions in investment across Africa and Asia. But as global dynamics evolve, so too must the country’s positioning.
The recently released Financial Services Strategy Report (2025–2030)[1] reflects this recognition. While it is candid in parts, the report is ultimately pragmatic. It does not dwell on shortcomings but rather frames them as catalysts for a necessary strategic pivot. The message is clear: Mauritius must diversify and reposition itself to maintain itself as a top investment platform in a more competitive and complex global landscape.
The Impact of the India–Mauritius DTAA Amendment
A number of factors have contributed to the recalibration of Mauritius’ financial services sector, such as increased operational costs, regulatory bottlenecks, and global reputational shifts, among others. One turning point commonly referenced is the 2016 amendment to the Double Taxation Avoidance Agreement (DTAA) with India.
Previously, the treaty provided a route for capital gains from Indian investments to pass through Mauritius without incurring Indian tax. This was an arrangement that contributed to Mauritius becoming the largest source of FDI into India for over a decade. The 2016 amendment, which conferred taxing rights on India for capital gains on securities acquired after 1 April 2017, was implemented gradually over a two-year period. Since then, a visible redirection of fund flows has occurred. By 2022/2023, Mauritius had dropped to third place as a source of FDI into India, behind Singapore and the USA.
While this shift was significant, it is important to place it in a wider context. Global investors have become more attuned to factors that extend beyond tax considerations such as regulatory substance, transparency, and economic ties. The re-evaluation of Mauritius as a financial conduit must therefore be understood within that broader transformation of investor expectations.
Rethinking the Global Business Model
The Global Business sector, particularly companies operating under the Global Business Licence (GBL), remains central to Mauritius’ financial services ecosystem. As of early 2025, GBL companies still represent a significant share of sectoral GDP.
However, the need for diversification is increasingly apparent. Mauritius is not alone in facing this imperative. Competing jurisdictions have been proactive in repositioning themselves:
- Singapore has matured into a fully integrated financial hub, blending traditional banking services with advanced fintech, wealth management, and capital market platforms.
- Dubai has built a legal and infrastructural ecosystem tailored to regional and international financial flows via the DIFC.
- India’s GIFT City is rapidly developing as a tax-efficient alternative, leveraging proximity and regulatory incentives.
- Kigali and Casablanca are investing in niche offerings and digital frameworks to establish regional prominence.
In that light, Mauritius’ future competitiveness lies in expanding the spectrum of services it offers, rather than relying predominantly on its GBL framework.
What Mauritius has done right
To its credit, Mauritius has taken important steps in recent years. After being placed on the FATF grey list in 2020, the country enacted major reforms and exited the list by 2021, following significant reforms in anti-money laundering and governance frameworks.
New licence categories ranging from family offices to virtual asset providers were also introduced, though uptake has been modest. The Strategy Report candidly acknowledges that nearly 30% of new licences remain unused, reflecting a need for better market alignment and policy cohesion.
Nevertheless, the foundational regulatory and legal infrastructure remain sound. Mauritius continues to offer a respected judicial system and a strong arbitration framework, modelled on international standards. These pillars provide a credible platform upon which broader reforms can be built.
Strategy to Execution: A Framework
The Strategy Report does not set out a detailed legislative or regulatory reform package. Rather, it defines a set of priority areas that are expected to shape how Mauritius repositions itself within a fast-evolving financial ecosystem.
At Orison Legal, we view several of these focus areas as particularly compelling – not only because they reflect emerging policy priorities, but also because they align closely with the needs we encounter in our advisory work. In particular:
- A comprehensive review of the fund ecosystem, with the aim of facilitating the establishment of foreign fund managers in Mauritius;
- Introduction of an enhanced Wealth Management and Family Office framework, alongside targeted measures to attract Venture Capital firms;
- Expansion of correspondent banking networks;
- Growth of capital markets through digital assets, commodity exchanges, and fixed-income instruments;
- Scaling up sustainable finance via ESG-aligned investment tools and blended finance models; and
- A renewed focus on global branding, anchored in transparency, regulatory credibility, and innovation.
The Strategy Report announces the setting up of targeted technical committees under the Financial Services Consultative Council, with a mandate to develop clear, measurable and time-bound action plans within 3 months of their establishment.
Importantly, the report calls for greater coordination between public and private stakeholders, which is something Mauritius has historically navigated well when faced with global reform imperatives.
Looking Ahead: Execution as the Real Test
While the report outlines an ambitious course, much will depend on disciplined execution. Mauritius has the legal and institutional tools to drive this transition. What is now required is concerted action across government, regulators, and the private sector.
At Orison Legal, we view this Strategy Report as a turning point. It provides the clarity that stakeholders need and the honesty that leadership demands.
The establishment of the Implementation Committees is a constructive first step. Its ability to operationalise the Strategy Report’s vision, however, will be the ultimate measure of its success.
Mauritius remains well-placed to continue serving as a platform for cross-border investments. While the international financial landscape has become more complex, it also presents new opportunities for jurisdictions like Mauritius, that demonstrate regulatory soundness, operational efficiency, and the capacity to evolve.
[1] https://financialservices.govmu.org/Documents/Strategy%20Report%202025%202030.pdf
