Big lessons for South Africa – as an economy

John Johnson

Global Courant
While South Africa’s economy has been stagnant due to a myriad of economic problems, Mautrius’ free market economy has attracted large amounts of foreign investment.

Dani van Vuuren, business development consultant at Sovereign Trust, said Mauritius’ growth is expected to increase by 75% over the next 10 years, with the country becoming a hotspot for relocations and startups.

An important growth engine is the tax benefits that the East African island state offers foreign investors. Corporate and personal income taxes are taxed at just 15% and additional concessions are available.

“Tax residents of Mauritius are only taxed on income from Mauritius and there is no capital gains tax or inheritance tax. Moreover, there are no exchange controls, which provides the ideal gateway for international business expansion,” says Van Vureem.

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He said strikes and red tape hinder employment in the country, unlike in Mauritius, where employers are free to hire whoever they want.

“You have to update your labor laws if you want to create employment,” he said.

He said divorcing someone is easier than firing someone in South Africa and investors prefer to invest in real estate over companies with employees and managers.

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