Since the 2020 economic downturn, middle-sized Mauritian companies have been increasingly willing to invest in pursuit of growth. However, instead of choosing to invest in Mauritius, they are opting to open offices and set foot on the African mainland to grow closer to the continental market.
According to official data from the Bank of Mauritius, in 2020, Rs. 1.2 billion have been invested by Mauritians in Africa compared to Rs. 1.7 billion in 2019.
However, according to a source-based in a leading strategic consulting company that specializes in intra-Africa investment, middle-sized companies are increasingly looking forward to advice on how best to proceed to branch out to the African continent. “Middle-sized companies are willing to pay up to $15,000 for growth roadmaps on the continent. Since 2020, we have observed than that some service-oriented companies who have no history of trade with Africa have set aside considerable sums to open offices, build networks and bid in public procurement exercises in Eastern Africa especially”, say our source.
The economic crisis that followed the pandemic has motivated Mauritian companies to raise funds in order to innovate and renew with 2019 growth rates.
“Many large and middle-sized companies will not find it difficult to raise funds locally to finance expansion on the African continent. Our biggest banks are persuaded about Africa’s potential for local business savvy leaders and have themselves significant stakes in Sub-Saharan Africa” he added.
This physical expansion to get closer to high-growth markets is in line with Government policy to support companies willing to branch out through the Mauritius Africa Fund’s Special Economic Zones in Ghana, Ivory-Coast, Madagascar and Senegal. The Government believes that profits made on the continent will be re-invested in Mauritius in the middle-term.
