Namibia is a developing country with a population of over 2 million people. Located in Southern Africa, it is rich in natural resources, especially in the energy sector. The energy sector in Namibia has been growing in recent years, with the discovery of new oil reserves as well as advancements in renewable energy sources.
Nestled off the eastern coast of Africa is Mauritius, a small island nation that has enjoyed significant economic growth as a result of its favourable tax regime and business-friendly policies. It is well known for its strong economy, with a GDP of $11.53 billion in 2021. The country is also home to a thriving international financial sector, with a well-regulated banking system and a robust business environment. These factors make Mauritius an attractive platform for investors looking to invest in the energy sector in Namibia.
Mauritius can play a critical role in helping Namibia attract investors and grow its business opportunities in the energy sector. Incidentally, Mauritius offers the perfect offshore investment vehicle in the form of its Global Business Company (GBC). By using this vehicle, a non-Namibian individual investor or company wishing to establish an energy project and an entity in Namibia would have its holding company in Mauritius and enjoy the benefits of a Double Taxation Avoidance Agreement (DTAA) signed between the two countries since 1995. For example, by virtue of this DTAA, dividends declared by a Namibian entity to a Mauritian GBC would be subject to a tax rate of only 5%. By way of comparison, the same dividends declared directly to the non-Namibian shareholder would have been subject to a tax rate of 10%.
The Mauritian Global Business Company is also an appealing proposition to Namibian nationals who hold business ventures in other countries all over Africa and the world as Mauritius has signed Double Taxation Avoidance Agreements with 45 countries so far with a few more under negotiation. Those Namibian global investors would be able to enjoy the advantages of such DTAA’s as well as the benefits of the Mauritian robust International Financial Centre and banking system.
Another key area where Namibia can benefit from Mauritius is in financing. Mauritius has become a hub for finance and investments in Africa, hosting over 800 registered investment funds and managing over $120 billion in assets. Being home to several specialized financial institutions means that Namibian investors would have access to a robust financial infrastructure that could help with financing energy projects and managing risks. By partnering with these financial institutions in Mauritius, businesses in Namibia can tap into a wealth of experience and knowledge that can help them secure the funding they need to grow their operations. This will enable them to expand and grow their businesses, as well as attract investors to the sector.
Mauritius has a stable and predictable business environment. With a well-developed legal and regulatory framework, Mauritius provides a conducive environment for businesses to thrive. For businesses in the energy sector in Namibia, the stability that Mauritius offers gives them a solid foundation to build their operations. By operating from Mauritius, businesses in Namibia can access an internationally recognized legal and regulatory environment that provides certainty to investors.
The strategic location of Mauritius is also an added advantage. It has a well-developed port and airport, which makes it easy for businesses in Namibia’s energy sector to connect with other markets.
By operating from Mauritius, businesses in Namibia can access a wide range of markets and build their customer base.