Mauritius's banking and financial services industry is among the most well developed in SubSaharan Africa. The country has utilised its strategic geographic location and special tax relationships withdozens of countries to develop as an international financial centre. Robust supervision, investor-friendlyregulations and a stable macroeconomic and political environment all underpin the country's appeal tofirms seeking global financial services. That said, the renegotiation of the country's tax relationship withIndia, long a key driver of demand for its financial services, will push the industry to reorient itself towardaSub Saharan Africa, where it hopes to benefit from robust growth, particularly in East Africa.
Mauritius's banking sector is highly developed for a market of its size, as the country has utilised itsgeographical location and its special tax relationship with India and a host of other countries in order tobuild one of the most developed financial services industries in Africa. The country's stable macroeconomicenvironment, investor-friendly regulations and robust supervision has helped the island become aninternational financial centre. However, the renegotiation of the country's tax agreement with India in April2017 has undermined a core driver of demand for banking services. In response, we expect the bankingsector to reorient itself towards growing markets in Sub Saharan Africa, particularly within the East AfricanCommunity. Growth rates will likely moderate, but we see opportunity in facilitating investment fromChina and in high growth domestic industries such as real estate and medical tourism.
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