The Financial Services Sector in Mauritius 2024

Challenges

Evolving money-laundering and terrorism financing risks. Fraud, including cybersecurity risks, pose a threat to the sector and its customers. Increased competition from Rwanda, Kenya, Dubai, Singapore, Luxembourg and India’s Gift City international financial services centre and special economic zone. Lenders are at higher risk of bad debt and credit losses, due to economic pressures.

Introduction

Mauritius has the highest level of financial inclusion in Africa. Strategically located at the crossroads of Africa and Asia, it is an important regional financial services hub and an international financial jurisdiction of growing importance. It provides offshore, onshore and hybrid financial services, including cross-border business facilitation and investment, fund administration, corporate banking, global business services, private banking and wealth management. Banks’ solvency and liquidity buffers have remained well above minimum regulatory requirements. The financial services sector is the single largest contributor to GDP and the primary driver of the economy.

Opportunities

Development of green bonds, and other sustainable financial products. Expanding solutions for foreign corporate business, specifically companies from India. Microfinance, including products customised for SMEs. Private wealth management services, including offshore banking, is a high-growth segment. The development of digital banking products and fintech apps. The growth of intra-African trade offers opportunities for banks to provide trade finance. The regulation of virtual assets allows for the development of new trading and investment platforms.

Outlook

Stronger tax laws have not significantly undermined the attractiveness of Mauritius as an international financial jurisdiction. Cross-border business activities are expected to remain robust. Private wealth is expected to remain buoyant, supported by the growing African mass affluent market. As the sector becomes increasingly digitised, the use of cash and cheques is expected to become less prevalent. With more fintech companies entering the country, the financial services sector is expected to become increasingly competitive and innovative. The sector has a strong focus on sustainability and its banking system is sufficiently resilient to withstand liquidity stresses.

Report Coverage

The report on the financial services sector in Mauritius includes comprehensive information on the central bank, development banks, commercial banks, and other licensed and non-licensed related service providers. It discusses financial inclusion, sectoral contribution to the economy, the state of the industry, key trends and issues, notable players, corporate actions and influencing factors. There are profiles of 29 companies including major South African and international banks in Mauritius such as Standard Bank, Investec and HSBC, local development banks such as the Development Bank of Mauritius and The Mauritius Housing Company, and local banks and financial services companies such as Mauritius Commercial Bank, SBM, AfrAsia, CIM Financial Services, MCB Leasing and ABC Banking.

Trends

Although cash and cheques are still widely used, online banking transactions and mobile banking are increasing, and in-person banking is declining. Diversification of revenue to include insurance services, investment management, wealth advisory services and loyalty/rewards programmes. Greater focus on microfinance for low-income groups and small business. Increasing focus on sustainability and exposure to climate change risks, and on environmental, social and governance (ESG) factors. Non-traditional players, including retailers, telecommunications companies, and tech companies, are increasingly providing financial services. The acceleration of digital banking, with a growing focus on fintech. The use of technologies such as blockchain and AI is rising.