**Published in Mauritius Finance Magazine, October 2025
As global capital increasingly aligns with sustainable development goals, international financial centres (‘IFCs’) have evolved beyond their traditional roles. Whilst historically recognised as fund domiciliation hubs, these IFCs are becoming active enablers of climate and environmental progress and Mauritius has the potential to lead the broader agenda of becoming the ESG capital gateway into Africa.
The Study on Africa as a Jurisdiction for Domiciliation of Investment Vehicles[1] published in November 2024 highlights the jurisdiction’s position as a leading fund domicile, distinguished by its enabling environment through regulatory stability, operational efficiency, and a robust legal and financial infrastructure. However, the report also points to a deeper opportunity: fund domiciliation is not the only way to attract capital to Africa and driving investment capital of all types remains critical[2].
Mauritius is well positioned to pivot from a platform for domiciled funds to a dynamic sustainable investment hub that channels diverse forms of capital (for example from blended finance to sustainable bonds) into Africa. This evolution can empower African fund managers, asset managers, and other financial intermediaries to expand their reach beyond borders and support the expansion of entrepreneurial ventures as well as the continent’s dynamic micro, small and medium enterprise (‘MSME’) ecosystems.
Indeed, Mauritian regulators in the recent years have taken deliberate steps to shift into this direction to align with global sustainability trends and encourage the growth of these varied capital flows, notably through the publication by:
- the Bank of Mauritius (the ‘BOM’) of the “Guide for the Issue of Sustainable Bonds in Mauritius” in 2021, aimed at providing a framework for environmentally focused debt issuance aligned with international best practices;
- the Financial Services Commission (the ‘FSC’) of the “Guidelines on the Issue of Corporate and Green Bonds” in 2021, detailing regulatory requirements (including eligibility thresholds, minimum issue size, and disclosure obligations amongst others) to reinforce market integrity and support the BOM’s Guide; and
- the FSC of the “Disclosure and Reporting Guidelines for ESG Funds” earlier this year, concerning disclosure and accountability standards for funds incorporating ESG criteria.
Whilst these regulatory foundations reflect the intent and commitment of Mauritius to laying the groundwork, the question remains whether additional steps can be taken to develop a more comprehensive ecosystem and strengthen the jurisdiction’s leadership in this area.
Existing frameworks focus heavily on attracting funds and promoting bond issuance[3], and can be expanded to support other ESG-related financial products and services.
Beyond those current measures and campaigns promoting Mauritius as an IFC, one potential strategy worth exploring would be to take advantage of the current fintech landscape to (a) launch a digital platform in Mauritius connecting MSMEs seeking ESG-aligned funding with capital sources such as impact banks, development finance institutions, and venture funds; and (b) create an ESG-focused database of stakeholders operating from Mauritius with the aim of enhancing transparency and building trust among investors and prospective fund managers. The platform and database can also serve as a repository for verified ESG data. Mauritius may further leverage its capabilities both for sustainable finance and inclusive fintech innovation by developing a regional incubator network with a central platform hosted in Mauritius similar to the Monetary Authority of Singapore’s (‘MAS’) ESG Impact Hub, which can be designed with a dedicated focus on MSME development and support. Capital flows through Mauritius into Africa can be channelled not only via traditional vehicles such as funds or VCC, but also by alternative mechanisms such as digital financing instruments, blended finance structures, or crowdfunding platforms. By anchoring these initiatives in Mauritius, the jurisdiction could strengthen its value proposition as an IFC focused on sustainability, governance, and inclusive growth. Over time, this ecosystem has the potential to attract a critical mass of ESG-conscious investors and fintech innovators, driving greater capital inflows through Mauritius into Africa.
Other measures may include extending tax incentives to other key players (such as impact verifiers and auditors) willing to establish operations in Mauritius; offering financial support to eligible entities to cover the expenses of obtaining ESG reports or certifications (akin to the initiatives of the MAS); and facilitating fund passporting initiatives (as seen in Singapore and Abu Dhabi) with key markets and IFCs such as Rwanda, Nigeria and South Africa to enable investment vehicles domiciled in Mauritius to market to African investors.
On the flipside, Mauritius must also prepare to navigate challenges such as regulating potential greenwashing risks and the high cost of ESG reporting particularly for MSMEs. Balancing innovation with investor protection will be key to maintaining credibility and attracting long-term capital.
By building on existing strengths and embracing new strategies, Mauritius can redefine its IFC identity by anchoring transparency, sustainability and inclusion through those ESG-driven indicatives.
[1] Commissioned by the Mastercard Foundation in partnership with Mennonite Economic Development Associates.
[2] Page 13 of the Study.
[3] Such as income tax exemptions on interest derived by individuals and companies from sustainability bonds or sustainability-linked bonds, creating attractive incentives.
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