The total wealth held in Mauritus has risen by 195 percent over the past 10 years (2007 to 2017), making it the fastest growing wealth market in Africa and in the top three worldwide, according to a report from AfrAsia Bank and New World Wealth.
Mauritius now holds $43 billion total wealth, whilst per capita wealth is $33,000, which makes Mauritius the wealthiest country in Africa.
According to the report, the growth in wealth in Mauritius is due to a range of factors, including: economic growing, a growing financial services sector, particularly in offshore banking, fund management and private banking, growth in the number of high net worth individuals (HNWI), Mauritius now has 4,600 HNWIs, compared to 3,800 a year ago and only 1,400 HNWIs 10 years ago. This could in part be due to the ease of doing business, as Mauritius was ranked first in Africa in the World Bank’s 2018 doing business report.
Other attractions to HNWI individuals include its developed banking system and stock exchange, together with low unemployment and inflation rates. Also, anyone who buys a property worth more than $500,000 is granted automatic permanent residency. Property prices are rising, Grand Baie is now the second most expensive city in Africa behind Cape Town, making it a worthwhile investment, according to the research.
The report also praises Mauritius’ secure ownership rights, which are critical for successfully creating wealth globally. These encourage locals and foreigners to invest in property and businesses in the country. It also highlights the low taxes, as Mauritius has a similar tax structure to Singapore. Company and personal income tax rates are only 15 percent, and there is no inheritance or capital gains tax.
According to the Bank of Mauritius, other countires are investing in the country, including France, China, South Africa and the UAE.
New World Wealth is a global market research group, based in Johannesburg, South Africa. AfrAsia Bank Limited is headquartered in Mauritius and specialises in banking that connects Africa and Asia to the rest of the world.