The Captain's Blog

Starting a Guest-House in Mauritius

2012-01-20T11:08:00.000+04:00

When thinking about moving to Mauritius, the first problem to solve is how to sustain oneself in the country. A fair number have dreamed of establishing a guest-house or boutique hotel. Up to now, there has been no guidance as to how a foreigner may set up a business like this.

The Board of Investment (BOI) recently published guidelines to assist foreign investors wishing to establish a guest-house. Please note that these are guidelines, not rules, and should be addressed in the spirit they are intended.

Here they are:

There are two types of investment that would qualify: Building a new guest-house or renovating an existing building to be a guest house. I will treat them separately:

New Guest-House

Must have at least 12 rooms. Rooms are not defined, but using the descriptions used in hotels, I would suggest that they mean 12 bedrooms.

The investment must be at least R2m per room.

The standards should be aimed towards the luxury end of the spectrum. No Back-Packer's please.

The buildings should be eco-friendly.

The BOI will take the project proposal to the Tourist Authority for approval before reverting to the applicant. It is therefore important to make sure that the project adheres to the Tourist Authority requirements such as 24 hour security, cameras, safes, fire extinguishers etc.

Line of least resistance: Getting hold of leasehold property (beach front property) is difficult for a foreigner. It would be worth considering teaming up with a Mauritian partner, where the partner contributes the land and the foreigner contributes the buildings, for example. This is my view, not part of the guidelines.

Renovated Guest-House

The BOI will consider applications to invest in existing guest-houses only if they are to be renovated at a minimum cost of Rs500 000 per room ($17 000).

All other guidelines apply as above.

Competence in Managing A Guest-House

The investor must demonstrate that they have the competence to manage the guest house, or employ a competent person or company.

A non-citizen will only be permitted to manage the guest house if they are tied up in the investment at either the Rs 2m level per room for new developments, or Rs 500 000 per room for renovated guest-houses.

They must demonstrate their foreign track record in this industry.

A reasonable number of local employees should be employed.

*******

So here we see that the BOI has set some clear minimum standards, but that the detail is pretty vague. This is a good thing as every project should be evaluated on its merits.

I have to assume that any foreigner wishing to purchase or lease land with or without improvements is part of the deal. If this is the case, this establishes an exciting route for the right person to add something new to the Mauritius Tourism Industry.

The Invest-Hotel Scheme (IHS)

2012-01-19T14:17:00.001+04:00

Almost without exception, the first thing a person thinks about when discussing residential property in Mauritius is a house on the beach. But nearly all of the land touching the high water mark is owned by the government and leased to Mauritians on a 60 year basis.

IRS and RES schemes involve freehold ownership of land and improvements. This therefore excludes them from building on leasehold land. There are RES developments that have waterfront exposure (Anahita and La Balise for example) but these are because part of the free hold land touches water. There is one RES that I know that found some beachfront land that is freehold. It is in Tamarin, and is probably the most desirable property available on this basis.

For the majority of non citizens looking for property in Mauritius, RES and IRS may enjoy sea views or proximity, but the dream of having a boat at the bottom of the garden is just that. A dream.

However (I love this word!)

The Invest-Hotel scheme is one way that foreigners can acquire title to the improvements that are built on leasehold land.

The way it works is as follows:

A Mauritian developer (or foreign with permission) acquires leasehold or freehold property at least 1 Ha (10 000 square meters) in size and decides to put up a hotel on this site. By the way, a hotel is roughly defined as something that provides accommodation with a food and beverage service.
Gets a letter of intent from the Tourism Authority
The developer submits application to the Board of Investment (BOI)
Presents the project to the BOI Technical Committee and organises a site visit
The developer receives a letter of approval from the BOI
Obtains permits and licenses from the relevant authorities (lots of work here)
Transfers land rights to the IHS Company
Forms a Syndicat des Copropriétaires (co-ownership syndicate or body corporate), provides a bank guarantee and submits other documents as per the BOI letter of approval. This step is really important as it protects the buyer of the unit from losing his property if the hotel goes belly up.
Finally receives the IHS certificate from the BOI
Transfers the land rights to the Syndicat des Copropriétaires
Starts selling the units to citizens or non- citizens. Off-plan is allowed.

Right, that's the developers side of things. Now let's have a look at how to purchase a unit:

If purchased off-plan, payments will be phased according to a set formula. As each stage is paid, those works become the property of the buyer as follows:
- a. signing of the deed: 25%
- b. completion of the foundation works:10%
- c. completion of roofed-in phase: 35%
- d. completion: 25%
- e. availability of premises: 5%

This phased payment with transfer of ownership prevents unscrupulous developers from selling or pledging the property to third parties during that period, and it also means that if the developer folds, the improvements and rights to the land remain with the buyer.

Some other conditions:

Stand alone villas cannot be sold as one unit for less than $500 000
There is no minimum price on the sale of rooms.
No residence rights come with this deal
The owner can only stay in their unit for a maximum of 45 days in any 12 months.

So what the IHS scheme achieves where the IRS and RES do not, is that it gives an investor title to something possibly on the beach. It also creates the opportunity for the investor to generate an income from this investment, and to participate in the tourism industry of Mauritius.

Mauritian Residence - Trying to clear the confusion

2012-01-16T16:10:00.000+04:00

There is a huge amount of confusion about what form of residence you can get. I will try to clarify this as best I can.

For those in a hurry, here is the short summary:

Residence Permit - You can live but not work in Mauritius
Occupation Permit - You can live and work in Mauritius but your spouse gets a Residence Permit.
Permanent Residence Permit - You and your spouse may live and work in Mauritius unless you got this using the Retirement Scheme method, in which the retiree cannot work and the spouse needs a work permit.
IRS and RES owners get a Residence Permit not a Permanent Residence Permit (sorry).

If we go back in time, anyone wanting to work in Mauritius required two permits, a residence permit and a work permit. You needed the former before the latter was issued. Both required renewal when they expired.

Then the government combined these two into an Occupation Permit. The holder can live and work in Mauritius for three years and only apply for one permit renewal on expiry.

The creation of the Occupation Permit did not replace the residence permit or the work permit. These two things still exist.

IRS and RES Residency

Now let's have a look at owners of IRS and RES properties that cost more than $500 000. They, and their immediate family are provided with RESIDENCE for the duration of their ownership. Do not think for one minute that this is the same thing as a Permanent Residence Permit. If anyone (the husband or wife or children under the age of 18) want to work, they have to individually apply for a work permit. No Permanent Residence Permit is available under this scheme. I say this twice because nearly anyone trying to sell you a property will fudge this.

Retirement Scheme

There is a provision in law that if the minister is satisfied that a non citizen can sustain himself from funds obtained from outside of Mauritius, a residence permit may be granted. The Retirement Scheme is simply an efficient version of this law. Any retiree who is at least 50 and who brings $40 000 into the country each year may get a residence permit for three years, and thereafter a Permanent Residence Permit.

For those who want to live like this but are under the age of 50, I suggest you make an application for residence because you can sustain yourself. I don't know of any approvals of this nature, but I see no reason for them to say no.

Please note that while the spouse does not need to bring $40 000 in each year, she may not work either. For that she would need to apply for a work permit. The Principal Retiree cannot apply for a work permit. He would need to qualify from scratch for an occupation permit if he wanted to work.

Occupation Permit

As long as the bread winner meets one of the criteria for an Occupation Permit, then a permit for three years will be granted. The spouse and family under 18 each will be provided with a Residence Permit and will hence not be allowed to work. After three years, and on condition that the higher thresholds are sustained for each of those three years, then a Permanent Residence Permit may be applied for.

Permanent Residence Permit

This is an Occupation Permit on steroids. The breadwinner AND his wife may work except if this permit was granted under the Retirement Scheme Conditions in which case NEITHER can work. It lasts ten years, and if you want to, you may purchase an apartment to live in. The annual standards for income apply each year for the next ten.

Any time spent in Mauritius under a residence permit (or occupation permit) will contribute towards the time required for an application for citizenship.

Is that any clearer now?

Conditions for Permanent Residence and the Purchasing of Property

2012-01-10T13:39:00.000+04:00

My previous posts and other websites have helped make the 'Apartment for Permanent Residents' Scheme a bit confusing. I will try and clear things up as best I can.

First thing you need is a Permanent Residence Permit (PRP)

A PRP can be given to you if you own a company in Mauritius that has earned more than Rs15 million each year for the previous three years without changing your occupation permit. Gross earnings are the measure here, not net.
A PRP can be given to you if have been self employed in the previous three years with the same occupation permit and have earned at least Rs3 million each year.
A PRP can be given to you if you, as an employee with the same occupation permit have earned at least Rs150 000 per month for the previous 36 months.
If you have had a Retirement Permit for the previous 3 years, and have transferred $40 000 or equivalent from a foreign bank account to your domestic bank account in each of these years, then you can get a PRP. And don't try and get clever and transfer it out as soon as it has come in.
You will be expected to continue meeting the above standards throughout the next ten years. If you have been good, then you will be allowed to renew your permit.
A retiree will not be allowed to work in Mauritius with this new PRP. That means no salary and no director's fees. Dividends from investments are allowed, obviously.

Good. So now you have your fresh new PRP and can go house hunting. But what house?

Well, none actually!

But you can have an apartment in a building with at least two stories above the ground floor. No tricks here, please. A Notary will have to certify that the building is an apartment block and that it has at least two floors above ground.

Earlier communications stipulated that the apartment block must have been built in the last year, but I have scoured the new regulations and this seems to have fallen away.

You are also allowed to buy one unit only, for personal residence purposes. I assume that this does not allow you to rent it out. They were very clear about the word Personal.

You are strictly forbidden to speculate in property. What I guess they mean by this is that if you buy off plan and sell before it is complete, this would be frowned upon. Or even if you buy and sell without living in the unit. Not sure here but you get the drift.

If you want to sell the property, you will need to get the permission of the Government who may impose conditions on this sale. I don't know what they mean here. Let's wait and see.

The good thing about this new scheme is that it is another way to acquire property in Mauritius in addition to the RES, IRS and IHS schemes. And it also means that accommodation could be more affordable to a lot of expats looking to live in Mauritius. It is also possible that the conditions will evolve over time, to allow for more meaningful property investment.

Another good thing is that the spouse of the PRP holder may work in Mauritius without a work or occupation permit.

It is not clear whether the spouse of a retired PRP may work or not but it looks like it is possible. It is also not clear what happens to the spouse and children if the main holder of the PRP dies.

And the best thing of all is that the PRP gives a certain group of expatriates the security that their permit expires in ten years, rather than three. This will make them keener to become part of the fabric of Mauritius.

Hidden Headaches of IRS and RES Property

2012-01-09T16:09:00.001+04:00

The Grown Child Headache

The owner of a unit in either the IRSor RES scheme that is purchased at a price of USD500 000 or more hasthe rights to residence in Mauritius for as long as he owns the unit.

His immediate family (wife andchildren) also have the right to live in Mauritius until they reachthe age of 18 or are permanently enrolled as students in Mauritius.

Trusts and Companies that hold a unitas above, may confer these rights to an individual (and immediatefamily as above).

This creates a problem for many buyerswho have grown up children they wish to relocate to Mauritius withthem.

One solution is to start a company withthe grown child as investor or employee. But this had better be areal company with real income or the rights may be taken away as soonas the financials move from the Mauritius Revenue Authority to theBoard of Investment who control these Occupation permits.

The company has to be a GBL1 company(taxed at 3% or 15% depending on its operations) or a local company(taxed at 15%) and the income of the child will be taxed at 15%unless it is dividend income.

Capital Gains Tax Headache:

The Mauritius Revenue Authority (MRA)has been known to attempt to tax profits arising from the sale ofunits held by companies or trusts despite the absence of capitalgains tax in Mauritius. The MRA attempts to class the companies ortrusts that make a profit from the one unit they hold and then sell as 'trading in property' companies, andhold that the profits are therefore business profits.

Deemed Income Headache:

The second tax headache is can occurwhen a company or trust confers the right of residency to someone,and that person lives in the house without paying rent.

The MRA contend that the company shouldpay tax on the notional income that it should have received. Oralternatively, that the individual should increase his income by thenotional rental amount and then pay tax on this income.

The efficient solution to the above isthat the person living in the house for free pays for the maintenanceof the unit and various other expenses. If this payment is made fromsavings reserves, the resident won't be taxed, and the company willonly pay tax on the amount that exceeds the costs of the property.

Inheritance Headache:

Inheritance is governed by the CodeCivil – a derivative of the French Code Napoleon. Any person whoholds property in Mauritius will be subject to forced heirship. Without getting technical, the effect is that the spouse gets half,and then half of whatever is left to the children. If the propertyis ultimately held by a trust, this is avoided, as the property doesnot become part of the deceased estate. There are possibly otherways to resolve this problem, and a Notary is the best person toassist in this area.

High Cost Headache:

It is a well known fact that the priceof IRS and RES properties carry a premium. They are often sold atfour times the cost of construction. In the case of IRS propertiesthis is hard to avoid, for the buyer of the unit also has to pay forthe development of the estate, including roads, gardens, security,electricity, water and sewerage. The maintenance costs are also highfor the same reasons, but also because the property developer has thelegal exclusive right to sell these services to the owners and make aprofit from this.

Rental Headache:

IRS and RES unit owners are forced to rent their units through the property development company. The rental pool arrangement does have benefits as they are responsible for maintenance and can controlaccess and payment, as well as contribute to marketing. Unfortunately, this does make some owners feel that they are notreally owners, but rather tenants on their own property. Rentalreturns can be disappointing.

For those who don't believe me, here is an extract of the regulations relating to IRS and RES developments:

23. Rental of residential property
No owner of a residential property under IRS or RES shall offer the property for lettingotherwise than through –

(a) the IRS Company or RES Company; or
(b) a provider of property management services, designated by the IRS Company
or RES Company, as the case may be.

One estate (Villas Val Riche) hasdevised a plan where the owners eventually take over the rights tothe development company's income, and have a say within the companyfrom the start. Others will surely pick up on this innovativesolution.

Joint Ownership Headache:

Often two individuals wish to pooltheir funds to purchase a unit. If the unit is worth $500 000 onlyone of these buyers can be the appointed resident (regardless of whothe beneficiaries of the trust are, or the directors or shareholdersof the property owning company).

Two brothers each contributing $500 000to purchase a single unit worth $1 000 000 do not both get residency. If they had purchased separate units worth $500 000 then each wouldbe entitled to residence. I believe that if the case is strongenough, special representation to the BOI for both to get residencemay be considered. But this would be an exception.

Work Permit Headache

While a residence permit is provided to the owner of an IRS or RES costing more than $500 000, this residence permit is not the same as a Permanent Residence Permit, and therefore does not confer the right to work on its holder or his immediate family. A separate application must be made for a work permit. Please see my other post on Residence (above this one).

Misunderstanding the Point of this Post Headache:

Please take these comments as a guideto avoiding pitfalls usually not included in the sales pitch. If buyers know what to expect, they can plan accordingly. This is not aninitiative to destroy IRS and RES schemes. I personally believethese schemes are good for both Mauritius and its new residents.

Permanent Residents can buy an Apartment - it's official.

2011-12-30T17:28:00.001+04:00

Following on from my previous post discussing Permanent Residence Permits and the acquisition of freehold property, it now gives me great pleasure to show you exactly what has changed in the Non-Citizens Property Restriction Act:

An extract from The Non-Citizens Property Restriction Act showing the changes passed a few days ago: Deletions in Green and Additions in Yellow:

2. 3) No certificate shall be required -
(a) to enable a non-citizen to hold property in virtue of -
(i) a lease agreement for industrial or commercial purposes, other than a lease agreement or a sublease agreement in respect of a residential property, for a term not exceeding 20 years;
Amended by [Act No. 14 of 2009]
2. (ii) a deed of concession under the Fisheries and Marine
Resources Act 2007; or
3. (iii) a tenancy agreement for a term not exceeding 4 years;
Amended by [Act No. 18 of 2008] in the case of a non-citizen -
(i)
(ii)
who purchases or otherwise acquires or holds any property in accordance with any other enactment or any convention to which Mauritius is a party;
who purchases or otherwise acquires or holds property -
1. (A) while he is the spouse, married in accordance with
the régime légal de communauté, of a citizen;
2. (B) by inheritance; or
3. (C) by the effect of marriage;
(c) In the case of a non-citizen or a person not resident in Mauritius who -
1. (i) holds, purchase or otherwise acquires, sells or otherwise deals with shares or other securities of s company who is desirous of being admitted for quotation on the Official List of the Stock Exchange through a public issue, offer for sale of shares and private placement of shares, or quoted on the Official List of the Stock Exchange or admitted to any Second Market which may be established under the Stock Exchange Act; or
2. (ii) invests in a unit trust scheme and any other collective vehicle;
3. (iii) purchases or otherwise acquires any luxury villa,
apartment, penthouse or other similar properties used, or available for use, as residence with or without attending services or amenities from a company holding a certificate under the Real Estate Development Scheme, prescribed under the Investment Promotion Act;
Amended by [Act No. 21 of 2006]; [Act No. 17 of 2007]; [Act No. 18 of 2008]
(iv) being an investor purchases or otherwise acquires an immovable property, a right to immovable property or part of a building, for business purposes, upon production of an authorisation from the Board of Investment established under the Investment Promotion Act;
Added by [Act No. 21 of 2006]; [Act No. 17 of 2007]
(v) being an investor, a self-employed person who is a non- citizen, a retired non-citizen or a non-citizen referred to in section 5A(5AA) of the Immigration Act, and having been granted a permanent residence permit under the Immigration Act, purchases an immovable property or right to immovable property, villa, apartment, penthouse, flat or tenement, used or available for use, as residence only one apartment, in a building of at least 2 floors above ground floor, for his personal residence, on production of an authorisation from the Board of Investment, granted after it has obtained the approval of the minister.

Original including green bits added by [Act No. 21 of 2006]; [Act No. 17 of 2007];
Yellow bits added by [Act No. 38 of 2011]

To view the entire act as previously amended, I have pasted it below:

THE NON-CITIZENS (PROPERTY RESTRICTION) ACT 1975Act 22/1975
FORMERLY KNOWN AS PROPERTY RESTRICTION [ACT NO. 22 OF 1975]Date in Force: 12th July 1975
ARRANGEMENT OF SECTIONS

1 Short title
2 Interpretation
3 Non-citizens' property rights
4 Repealed
5 Consequence of contravention
6 Qualified Corporation

Short title
This Act may be cited as the Non-Citizens (Property Restriction) Act.
Interpretation
In this Act -
“acquire, alienate, hold or purchase" does not include the burdening of a propertywith a mortgage or a charge;
“Authority” - Deleted by [Act No. 13 of 2001]“business certificate” means –
a Category 1 Global Business Licence as defined under the FinancialServices Act 2007 or a banking licence issued under the Banking Act2004, in so far as it relates to its banking transactions with non-residents and corporations holding a Category 1 Global BusinessLicence or a Category 2 Global Business Licence;

Added by [Act No. 13 of 2001]; [Act No. 35 of 2004]; [Act No. 21 of 2005]; [Act No.14 of 2007]
“certificate" means a certificate issued under section 3 (2);
"Commission" means the Financial Services Commission established under theFinancial Services Act 2007;

Added by [Act No. 13 of 2001]; [Act No. 14 of 2007]
“Charge" means a fixed or floating charge under the Loans, Charges and
Privileges (Authorised Bodies) Act;
“Minister" means the Minister to whom responsibility for the subject of internalaffairs is assigned;
“non-citizen" means -

(a) a person who is not a citizen of Mauritius;
(b) an association or body of persons, whether corporate or incorporate,

where -

(c)

(i)(ii)
(iii)

it is not domiciled in Mauritius;
it is quoted on the Official List of the Stock Exchange or admittedto any Second Market established under the Securities Act andits control or management is vested in one or more persons whoare not citizens of Mauritius; or
it is not so quoted or admitted and one its shareholders is not acitizen of Mauritius;
a trust in so far as it is involved in any transaction referred to insection 22 of the Trusts Act;

Amended by [Act No. 14 of 2009]; [Act No. 20 of 2009]
“Offshore Bank” - Deleted by [Act No. 13 of 2001]“offshore certificate” - Deleted by [Act No. 13 of 2001]“offshore company” - Deleted [Act No. 13 of 2001]“offshore fund" - Deleted by [Act No. 9 of 1997]
“property” –

(a)(b)

means an immovable property, whether freehold or leasehold, inMauritius; and
includes –
(i) in relation to a trust or otherwise, any rights or interests inimmovable property, whether legal or beneficial; or
(i) any shares;

Amended by [Act No. 14 of 2009]
“qualified corporation” means -
a corporation holding a Category 1 Global Business Licence as definedunder the Financial Services Act 2007 or a bank holding a banking licenceissued under the Banking Act 2004, in so far as it relates to its bankingtransactions with non-residents and corporations holding a Category 1Global Business Licence or a Category 2 Global Business Licence;
Amended by [Act No. 13 of 2001];[Act No. 20 of 2002];[Act No. 35 of 2004]; [ActNo. 21 of 2005]; [Act No. 14 of 2007]
“resident in Mauritius” means -

(a) in relation to an individual, a person who has his domicile inMauritius;
(b) in relation to a body corporate, a body incorporated or registeredunder the laws of Mauritius;

"share" -

(a) means an interest, by any name called, in a company, partnershipor société or any other body corporate which holds or purchasesor otherwise acquires an immovable property in Mauritius; and
(b) includes -

(i) a share in a partnership or société or anybody corporatewhich reckons amongst its assets -
(A) any freehold or leasehold immovable property inMauritius; or

(B) any share in a company or in a company holdingshares in a subsidiary or any share in a partnershipor société or any other body corporate, which itselfreckons amongst its assets, freehold or leaseholdimmovable property in Mauritius;
(ii) a share in a company which reckons amongst its assets -

(A) any freehold or leasehold immovable property inMauritius; or
(B) any share in a company holding shares in asubsidiary or any share in a partnership or sociétéor any other body corporate, which itself reckonsamongst its assets, freehold or leaseholdimmovable property in Mauritius; or
(C) any share in a company holding shares in anysuccessive subsidiary company, or any share in anysuccessive partnership or société or any othersuccessive body corporate, which itself reckonsamongst its assets, freehold or leasehold immovableproperty in Mauritius;

“shareholder” includes an association or body of persons, whethercorporate or incorporate, which is a non-citizen.
Added by [Act No. 14 of 2009]
Amended by [Act No. 18 of 1992]; [Act No. 25 of 1994]; [Act No. 9 of1997]; [Act No. 10 of 1998]; [Act No. 13 of 2001]; [Act No. 20 of 2002];[Act No. 14 of 2007]; [Act No. 14 of 2009]; [Act No. 20 of 2009]
Non-citizens' property rights
(1) Subject to subsection (3), a non-citizen who wishes to hold or purchase orotherwise acquire a property shall make a written application to theMinister giving, wherever applicable -

(a) the precise location of the property;
(b) a site plan showing its extent and precise location;

(b)

(d) the reasons for which the application is made;
(e) such other information as the Minister may require.

(2) On receipt of an application under subsection (1), the Minister may issueto the applicant a certificate authorising him to purchase, acquire or holdthe property, subject to such terms and conditions as the Minister mayimpose.
(3) No certificate shall be required -

(a) to enable a non-citizen to hold property in virtue of -
(i) a lease agreement for industrial or commercialpurposes, other than a lease agreement or a subleaseagreement in respect of a residential property, for a termnot exceeding 20 years;
Amended by [Act No. 14 of 2009]

(ii) a deed of concession under the Fisheries and Marine
Resources Act 2007; or
(iii) a tenancy agreement for a term not exceeding 4 years;

Amended by [Act No. 18 of 2008]in the case of a non-citizen -

(i)
(ii)

who purchases or otherwise acquires or holds anyproperty in accordance with any other enactment or anyconvention to which Mauritius is a party;
who purchases or otherwise acquires or holds property -

(A) while he is the spouse, married in accordance with
the régime légal de communauté, of a citizen;
(B) by inheritance; or
(C) by the effect of marriage;

(i) holds, purchase or otherwise acquires, sells or otherwisedeals with shares or other securities of s company who isdesirous of being admitted for quotation on the Official Listof the Stock Exchange through a public issue, offer for saleof shares and private placement of shares, or quoted onthe Official List of the Stock Exchange or admitted to anySecond Market which may be established under the StockExchange Act; or
(ii) invests in a unit trust scheme and any other collectivevehicle;
(iii) purchases or otherwise acquires any luxury villa,

apartment, penthouse or other similar properties used, oravailable for use, as residence with or without attending servicesor amenities from a company holding a certificate under the RealEstate Development Scheme, prescribed under the InvestmentPromotion Act;
Amended by [Act No. 21 of 2006]; [Act No. 17 of 2007];[Act No. 18 of 2008]
(iv) being an investor purchases or otherwise acquires animmovable property, a right to immovable property or part of abuilding, for business purposes, upon production of anauthorisation from the Board of Investment established under theInvestment Promotion Act;
Added by [Act No. 21 of 2006]; [Act No. 17 of 2007]
(v) being an investor, a self-employed person who is a non-citizen, a retired non-citizen or a non-citizen referred to in section5A(5AA) of the Immigration Act, and having been granted apermanent residence permit under the Immigration Act,purchases an immovable property or right to immovable property,villa, apartment, penthouse, flat or tenement, used or availablefor use, as residence, upon production of an authorisation fromthe Board of Investment.
Added by [Act No. 21 of 2006]; [Act No. 17 of 2007];

[Act No. 18 of 2008]
(d) for the purposes of paragraph 3(c), 'company' includes a unit trust,an qualified corporation or any other collective investment vehicle.
Amended by [Act No. 18 of 1992]; [Act No. 25 of 1994]; [Act No. 17 of 1995]; [ActNo. 9 of 1997]; [Act No. 10 of 1998]; [Act No. 18 of 1999]; [Act No. 25 of 2000]; [ActNo. 13 of 2001]; [Act No. 20 of 2002]; [Act No. 21 of 2006]; Amended by [Act No. 14of 2009]

Repealed
Consequence of contravention
(1) An agreement which is in contravention of –
1. (a) section 3; or
2. (b) a condition imposed in a certificate, shall be void.
(2) Where property is purchased or otherwise acquired or held in contraventionof –
1. (a) section 3; or
2. (b) a condition imposed in a certificate, the Curator shall forthwith -
  1. (i) take possession of the property; and
  2. (ii) cause it to be sold in accordance with the Sale ofImmovable Property Act.
1. (3) A person, other than a non-citizen, who acquires property pursuant to asale under subsection (2), shall acquire a good title to the property.
2. (4) The proceeds of a sale under subsection (2) shall, after deduction of allcharges, be paid over, in such manner as the Registrar may direct, to thenon-citizen or other person who appears to be entitled to them.
Qualified Corporation
(1) Subject to subsection (2), a qualified corporation or an applicant for abusiness certificate who wishes to hold or purchase or otherwise acquirea property shall apply to the Commission, or in the case of a bank holdinga banking licence under the Banking Act 2004 in so far as it relates to its

banking transactions with non-residents and corporations holding aCategory 1 Global Business Licence or a Category 2 Global BusinessLicence, to the Bank of Mauritius.

(2) The Minister may -
1. (a) make regulations to provide for the manner in which applicationssubmitted to the Commission or the Bank of Mauritius, as the casemay be, shall be processed;
2. (b) delegate to the Commission or the Bank of Mauritius, subject tosuch directions as he thinks fit, his powers to issue a certificateunder this Act to a qualified corporation.
(3) Any certificate issued by the Commission or the Bank of Mauritius, as thecase may be, under powers delegated by the Minister, shall be deemedto be a certificate issued under section 3(2) of this Act.

Amended by [Act No. 10 of 1998]; [Act No. 18 of 1999]; [Act No. 13 of 2001];[Act No. 35 of 2004]

Permanent Residency Back on Track UPDATED 13 December 2011

2011-10-12T14:29:00.000+04:00

An artist's image of a Rs19m penthouse apartment in Bon Espoir that qualifies for this scheme.

New Update On Permanent Residence Scheme - 13 December 2011

In October 2011, we were greeted with the exciting news that the Mauritian Cabinet had approved a new Permanent Residence Scheme and that more information would be available 'as from next week'. That week and many others have passed without any further information.

I feel sorry for the BOI who I am sure mean well, but are messed around by officials who don't share the same sense of urgency when it comes to attracting foreign capital, both intellectual and financial.

The best thing that expatriates can do for the time being is 'Register their Interest' by writing to the BOI.

My suggestion to anyone who would like to give this a shot is to send a letter to the BOI making a case as to why they should qualify for Permanent Residence. Please look at the draft guidelines below...

BOI Announces a ten year permanent residence scheme

Below in blue, is an extract from an email just sent by Ken Poonoosamy, Managing Director of the Board of Investment. The BOI is in charge with coordinating applications for all expat visas. Read on...

We are finalizing the guidelines and these will be available as from next week on BOI’s web site.

Persons that will be eligible for permanent residency for 10 years with the right to acquire an apartment within a building of a minimum of 3 stories are as follows:

An investor deriving a minimum annual turnover of Rs 15 million rupees for the past 3 consecutive years, or
A professional drawing a minimum monthly salary of Rs 150,000 or,
A self employed with a minimum annual turnover of Rs 3 million for the past 3 consecutive years, or
A retired non citizen having transferred a minimum of USD 40,000 annually to Mauritius for 3 consecutive years.

The first step for eligible non citizens meeting the above criteria is to apply for PR and once the PR is granted, they may apply for acquisition of the immovable property. The forms, procedures etc will be available very soon.

Do not hesitate to contact us for any supplementary information that you may require on the above.

Many tks

Ken

This is a good start. It removes the insecurity of having to apply for a visa every three years. It will also revive a number of stalled developments on the island. Finally, it will bring some capital into the country, both financial and intellectual. Well done, BOI.

UPDATE: 13 October 2011

New measure to allow a non-citizen to buy residential apartment in Mauritius. 7th Oct 2011

On Friday 07^th October 2011, the Cabinet of Ministers of the Republic of Mauritius has agreed to a non-citizen, who has been granted a Permanent Residence Permit under the Immigration Act, being allowed to purchase an apartment in a block of residential dwelling of not less than three stories as his personal residence, instead of as in the past. With a view to giving a boost to the construction sector, the construction works for the three storied building in which the apartment is located, need to have started after 1 January 2010. Applications should be made at the Board of Investment.

Here is an example of what I think will apply. This project started construction this year and is featured in the image at the top of this post.

Getting Ready to Grow - What do we need to change to get better?

2011-10-03T15:37:00.000+04:00

It is difficult to prepare for the future when the present is changing so rapidly.

Mauritius is a small country, and the main advantage of a small country is that it can effect change quickly. It is easier to tidy your sock drawer, than it is to spring clean your house.

The Board of Investment say that we have decided to position ourselves as the investment and business gateway between Asia and Africa. They asked Singaporean consultant, Ong Boon, what he thought of this positioning and what we should do. His response is summarised in the seven points below, and I have added my ten rupees worth of evaluation to these points.

One, enhance connectivity like air travel and internet capacity & reach.

Oh yes! The more difficult and expensive it is to get here, the more we cut ourselves off from the world. There is no logic in our current air fare structure and the shortage of alternate service providers causes frustration.

Internet Capacity: It can't be too much to ask a little country like ourselves to get a decent bandwidth for our internet services. Our current internet speed is one of the WORST IN THE WORLD. And yet we have the submarine cable passing through our country. This is probably the biggest thing to fix with the least effort.

Two, invest in infrastructure to enable growth.

After many years of dreaming for a miracle, we are now building roads like crazy. Keep this up. Try for slightly wider roads, so that we can overtake that pesky moped. Another great move was the development of the Ebene business park. This reduced the pressure on Port Louis, and cut many hours travel time to thousands of workers. I wish we had a railway that circled the Island. The strain on the roads caused by heavy duty vehicles would be reduced, not to mention the frustration of driving behind them.

Three, create value by being a hub (again based on connectivity), beyond being just a gateway.

This is Ong's polite suggestion that our strategy of being a Gateway is not substantial enough. I totally back him on this. We don't appreciate how good we are sometimes. The added value Mauritians can provide by becoming the financial hub, or the information hub, or the head office hub, is immense. Of course, to become the financial hub we would have to adopt a more realistic approach to due diligence. To become an information hub, we need more bandwidth. To become a head office hub, we need a more friendly visa application procedure.

Four, map ahead on scenarios, but beyond creating options for scenarios, develop the agility to meet changing situations.

Agility requires speed. Bureaucracy is the sand in the economic gearbox. Get rid of it. Mauritius has a vast civil service for its size. In many cases it is protected employment, sometimes political. Fair enough, every country that I know has an unofficial 'Jobs for Votes' program. But politicians who love their country more than their jobs should know that there is a point of diminishing returns. The more tangled and unnecessary the red tape, the fewer jobs are created outside the public sector. For the economy it is great to have high employment, but if one bureaucrat kills the possibility of hiring two private sector employees, then we have a problem.

Agility also requires versatility. Businesses need to develop the ability to choose and execute an alternative action. This comes from experience more than anything. Mauritius has a disadvantage here. Because we are small, we don't get to see many things first-hand. Our judgement is often simplistic. This is where the importation of expatriates can help. Each foreigner brings with them their experience. If we want to be good in Africa, we need experts from Africa. And we need to integrate them into our country so that they form part of the team.

Five, remove hindrances and enhance productivity across sectors.

A lot of this is covered in the previous section. Mauritius scores really high in the 'Ease of Doing Business' category, when compared to other countries. I would like to see this efficiency working through the system to include customs and clearing red tape, visa applications, building permit applications, less 'licensing' for no apparent purpose, and a weeding out of unproductive civil servants matched with an increase in salary to those that produce. Singapore pays its civil servants salaries that are often higher than the private sector. And they are efficient.

Six, identify and build-up new wings or platforms for economic growth.

We were great in the late Eighties. We adopted Export Processing Zones and allowed textile companies into these zones. They mopped up unemployment and effectively changed Mauritius to what it is today. In 1992 we introduced a set of enabling legislation to develop the financial services sector. Five years ago, we introduced IRS and later RES housing schemes to attract capital and people.

The EPZ's are shrinking due to Chinese competition. The Financial Services Sector is battling in the face of additional reporting requirements, changing legislation and insane due diligence standards. The IRS schemes are stagnating due to the high purchase price, silly management (in some) and most of all because people seem to have run out of money. The RES schemes have a mixed performance with many half finished shells.

Nearly each success has come from removal of restrictions. Nearly each failure from the addition of restrictions.

Seven, and probably most important, continually develop human capital in a sustained and committed way.

Of all the things on the list, this is the most achievable. Mauritians are hungry to learn, enjoy the benefits of good role models and are well educated. We are good here. Let's build on this.

Thanks Ong Boon.

South Africans to Mauritius - the Second Wave

2011-08-19T09:51:00.000+04:00

Our sister site, Dodo Relocations, just told me that SA removals companies are experiencing a sharp increase in the number of enquiries about moving to Mauritius. They say that this is a reliable predictor for an actual increase in business. Coupled to that, we have a new Minister of Finance. The head of the Board of Investment, Prakesh Maunthrooa has also left. The Board of Investment falls under the Ministry of Finance, and is responsible for the coordination of all applications for residence / work permits, as well as requests to purchase property. So there are lots of new people doing things that directly affect people wishing to move to Mauritius.

What does this mean to those South Africans thinking of relocating? I can't say for certain. But I am fairly sure relocation will not be as easy as it was in the past. Before these personnel changes, a number of adjustments were made to the criteria for acceptance of expat applications. I wait with baited breath to see what changes, if any, will come under the new regime.

Four years ago, Mauritius opened its doors to foreigners. A flood of expatriates hit our precious shores. We had a bit of a shock to the system as the expats in general but the South Africans in particular, brought their brand with them. By brand, I mean their culture, tastes, values, communication style, languages, flags etc. A number of Mauritians felt threatened by these different brands.

But this is what South Africans are about. It is a bit silly to expect them to immediately morph into a Mauritian. And look at Mauritians: They enjoy pieces of their their French, Indian, African or Chinese heritages without being un-Mauritian.

There are a whole lot of earlier posts and comments on this subject elsewhere in this blog.

As a result of these negative experiences the admission criteria have been tightened. The $1000 per month salary minimum has been increased to $1500. By the way, Singapore has just increased theirs to $3000. Retirees now have to be at least 50 years old, and have to bring a Morality Certificate with them. Professionals now have to validate their expertise with documentary proof, rather than just a CV.

Get the latest criteria for admission to Mauritius here. This document only covers Occupation Permits (work combined with residence), it does not cover Retirees (residence only).

I am sure these criteria will change as the days pass, and the officials get replaced. Future expats should prepare for high levels of frustration. It is a testing experience for anyone to tangle with our officials. This is the nature of Mauritian bureaucracy. The more things change, the more they stay the same. Plus ça change, plus c'est la même chose.

But once you have made it through the barriers, you will find yourself in a warm, welcoming country, filled with people who have only help in their hearts. Embrace us and we will return the favour many times over. We may do things differently, but this does not mean we do them any worse.

On our side, I am happy to hear that interest in Mauritius has been rekindled. Perhaps our flagging Foreign Direct Investment will pick up. Expats bring a new energy to a stagnating economy. Ideas and capital coupled with the ability to learn quickly and work hard can only mean good things are on their way for all of us.

Finally, I have a message to those few but vocal Mauritians who don't like South Africans in our country. You should learn a bit from how Mauritian expats act and are treated in other countries. It boils down to the same old thing:

Treat others and you would have them treat you.

New Minister of Finance to give investors hope?

2011-08-08T14:17:00.000+04:00

Our neighbour, South Africa, is enthusiastically chasing investors and capital out of their country with the assistance of Julius Malema, head of the ANC Youth League, and the Congress of South African Trade Unions (COSATU). Malema is supporting Mugabe style land grabs and nationalisation of mines. Cosatu also supports the nationalisation of mines.

We in Mauritius have not been very clever either.

The following items are top of my pile of disappointments:

Promises to give foreign investors permanent residence have failed to materialise.
A negative campaign against South Africans has been waged in the press over the last few years, with many either choosing to leave or being forced to leave due to visa cancellations, or non renewal. Due to this, there is a feeling amongst South Africans that they are being discriminated against particularly when it comes to the following item.
The criteria for approval of visa's has been fudged, with the introduction of a committee at the Board of Investment to vet applications on individual merit, creating uncertainty and frustration.
Capital Gains Tax and Tax on Dividends was introduced earlier this year.

For two countries that depend on foreign investors the way fish depend on water, these moves are suicidal.

I am not going to explain why the SA proposals are so stupid, as this is outside the scope of this blog. Instead, I want to expand on the dangerous path the Mauritian government has taken.

Potential investors into our region (Africa and South Western Indian Ocean) are principally concerned about the reliability our governments. Africa has a sad history of despotic and kleptocratic governments. If governments in our region show signs of being inconsistent in their introduction and application of their laws, this insecurity will chase any investor away.

Mauritius has pursued a path of enabling tax friendly legislation since the introduction of Export Processing Zones and the International Financial Sector in the early nineties. This has lead to a reduction in the unemployment rate and remarkable economic growth, both in volume and diversity. But in 2011 Mauritius seems to have changed her mind and is busy reversing the effects of all this hard work. The positive image we have built over the last twenty years has been tarnished, if not quite destroyed.

Mauritius needs a strong, technocratic, and imaginative Minister of Finance. We are a small country and the effects of any change are immediately felt. I like to think of us as Mauritius Limited and we will only be as good as our financial governance lets us be.

In the past, we have had magnificent ministers of finance. I can think of two that really made a positive difference to Mauritius: Rama Sithanen and Vishnu Lutchmeenaraidoo both deserve a place in my Financial Hall of Fame.

Now we have a new Minister of Finance, Xavier Duval. Xavier was a partner at audit firm Coopers (now PWC) when I arrived in Mauritius. PWC has an associated trust company that competes with our company. Since then, he followed his late father, Sir Gaetan Duval, into politics and has been a minister in various portfolios including tourism and social responsibility.

Xavier Luc Duval

Following a recent rupture in the Ramgulam - Jugnaut alliance, a few Ministerial vacancies emerged. Minister of Finance was one of them, and Xavier Duval has been given this most senior of portfolios. He is technically qualified and has the intelligence, communication skills and physical presence to sell his ideas at home and abroad. I hope he surrounds himself with hard working experts to give him the muscle to do the job well.

The opportunity is here. The image must be repaired. There is a flood of capital waiting to leave South Africa, and a lot from the rest of the world that is looking for alternative investments in the region.

Mauritius needs to get its act together right now or become a fish out of water.

Throwing the Baby out with the Bath Water part 2

2011-06-17T10:35:00.000+04:00

Update (17 June, 2011)

I see in today's papers that Fixed Direct Investment for the first quarter of 2011 is 25% of what it was for the same period last year. One of these reasons is the global erosion of capital. Other reasons are described below. What investors of capital look for is long term security. If a government gets a reputation for changing laws and breaking promises, this does not create a climate of certainty about the future.

Original Post: (15 June, 2011)
Following on from an earlier post of mine in May 2010 about how Mauritius seems to be doing its utmost to chase out investers, here is an extract from an analysis of current economic policy by the Economic Intelligence Unit, dated 6 June 2011:

The dilemma for Mr Jugnauth is that much of the success of Mauritius's economy since 2005 has been attributed to the economic reforms introduced by his predecessor, Rama Sithanen. These have resulted in Mauritius being ranked as the top country in Sub-Saharan Africa for economic freedom. However, these reforms were politically unpopular and, to some extent, they have been relaxed by Mr Jugnauth, whose economic strategy is based on expansionary economic policies rather than continuing structural and economic reforms. This has been commented on by the IMF and heavily criticised by the World Bank, and could weaken Mauritius's attractiveness to overseas investors and undermine Mr Jugnauth's GDP growth target.

To highlight this point, in 2010 foreign direct investment increased by 67% with funds flowing into the property and financial sectors as well as one hospital (covered in another post).

Yet in 2011 we increased reporting and disclosure requirements for Global Business Category 2 companies, taxed dividends received by individuals at 10%, introduced capital gains tax and have failed to renew countless residence permits.

I heard yesterday that there is now a minimum age of 50 on retirement permits. In my humble opinion this is an old fashioned view, as many individuals who retire from the rat race at a fairly young age would love to move to Mauritius with their newly acquired wealth and then manage their portfolios from the comfort of their villas, purchased or rented. They may not be drawing pensions, but they are retired.

It looks to me and many others that certain Mauritians don't want foreigners here, just their money. This is further evidenced by the failure to deliver on the permanent residence scheme promises after cancelling the other schemes.

I love Mauritius, and am very proud of it when it does something clever. I fear that lots of those clever things are being undone for emotional domestic reasons, without considering the long term effects to the economy and eventual happiness of the average Mauritian. Please let us not fall into the Zimbabwean trap of destroying all that is good to win votes from the poor, who will end up worse off.

: Capturing the SADC opportunity

2011-06-14T10:28:00.000+04:00

: Capturing the SADC opportunity: "“Wow, the Africa as a mainstream investment story just gets stronger and stronger. I was speaking in Johannesburg to a visiting Chinese d..."

Serene Shopping in Grand Bay

2011-06-09T13:36:00.000+04:00

I went to buy a new electric razor at Kalachand, Grand Bay. Shopping here is quite serene. There are four large floors of goods from Barbecues, Quad Bikes, Boats and Bicycles on the ground floor, up to Office and Patio Furniture on the fourth. The small appliances were on the third floor, including the razor and a radio controlled helicopter that I want for Christmas.

I was greeted by about four assistants on my way until one led me to the razors, and showed me the three models they had. I picked one (not the most expensive) and he then led me to a desk behind which sat a lady with a computer. She entered my personal details and enquired whether I still lived in Piton, which I do. She printed a large document in duplicate and told me to take this to the glass window. Behind the glass window sat another lady with a computer and a credit card machine. She processed my card, and gave me the two pieces of paper with the words ‘paid’ stamped on them. I then met another lady who had access to a store-room. She went in and came out with a Kalachand Shopping Bag and a Potato Peeler. My free gifts. The razor on display (their last model) was packed into its box after all the bits were put out on display to me. These were then put in the bag along with the potato peeler, along with one of the sheets of paper with my credit card slip stapled to it, and off I went to retrieve my car from the almost empty car park.

If I had been in a hurry, the highly segregated shopping assistant labour division would have been a bit frustrating. But the smooth flow from one person to the next, all of them wonderfully polite, was a pleasure.

I compare the experience to Game, which is not near Grand Bay, and has queues at the tills and a far less tranquil environment, and have resolved to give Kalachand a go when ever I can.

And another thing: Kalachand’s top of the range gas barbecue (not a Weber) cost Rs27000. It has three bars, plus a rotisserie with side heater, all in a stainless steel cabinet. The equivalent Weber at Espace Maison cost Rs124000 and their most expensive Weber was Rs179000. Unfortunately it was already sold!

Mauritius: The Head Office for Africa

2011-05-20T14:19:00.000+04:00

Graphic: Financial Times Analysis.

The Financial Times in an article yesterday (19 May 2011) said that the world is waking up to the fact that Africa is poised for growth as a result of foreign direct investment. The commodities boom has led to other areas of growth such as telecommunication and other infrastructure. The vast untapped agricultural resources are waiting for exploitation.

"The perception that Africa has reached a turning point – one qualitatively different from previous false dawns – stems from a combination of global and regional circumstance." The FT article says.

"With many of its 48 economies rebounding from the crisis faster than the rest of the world, sub-Saharan Africa is increasingly viewed as an opportunity rather than a burden." FT says.

The problem that keeps getting in the way seems to be dishonest politicians. I know...this is an oxymoron, with less emphasis on the oxy bit. One spin-off from the ever tightening web of bank supervision is that it is getting really hard for these politicians to transact their personal affairs internationally.

In the world of international financial services where I have worked for the last 18 years, it is our job to separate the good guys from the dodgy ones. We come across many potential and existing clients that are keen to do business in Africa. But the future investors find it impossible to buy shares of companies, or enter into contracts, where one or more of the parties involved is a 'Politically Sensitive Person'. PSP's cannot receive funds from Mauritian banks, nor can they pay into our bank accounts.

While this puts an incredible burden on our small businesses resources, the banks are also gate keepers and we work together with them.

All this due diligence gets in the way of legitimate commerce, and it is no different in Mauritius. But when it comes to dealing with Africa, Mauritius makes the perfect regional head office.

Here's why:

For the senior executive, Mauritius is a lovely place to live. Safe, warm, beautiful, good lifestyle, not too expensive, and multi lingual. Time Zone centrality makes it easy to talk to the bosses, and other regions. Flights out of Mauritius are plentiful, and regular.

For the business, Mauritius has good banking support, telecommunications (internet speed is still not great, but good enough for most needs). The graphic at the top of this post shows Mauritius as the easiest country in Africa to do business and ranks 20th in the world.

While Mauritius is part of Africa, it could be argued that it is also part of Asia, with exceptional volumes into India. So from China to the USA, business interested in Africa are starting to give Mauritius a good hard look.

What do Regional Head Offices do?

The first thing that a regional head office in Mauritius could do would be to create subsidiaries in the target countries. The basic business model is to keep the capital in Mauritius, and manage the operations on the ground accordingly. The key risk, nationalisation or theft or dissipation of assets is therefore minimised.

Expatriate staff could be hired and remunerated out of Mauritius. Mauritius would not tax these employees unless they physically worked in Mauritius. Intellectual property, contracts, royalties, purchasing, treasury operations, marketing, credit risk, insurance and many other aspects of the business could be managed from Mauritius. And the best of it all, the Mauritian company would only pay 3% tax on its foreign earned income and 15% on the balance, if any.

As Africa is set to grow, Mauritius is set to explode.

Mauritius: Gone to the Dogs

2010-10-27T14:38:00.000+04:00

There is one subject that is constantly on the lips of Mauritian visitors and inhabitants, and that is Dogs.

We are plagued by stray dogs. The sight of them upsets the tourists. They cause accidents on the roads. They roam the streets tearing up trash bags. They bark and fight. They crap everywhere. They are a blot on our pristine landscape. One lunch-time I was walking near the Opera House in Port Louis when a pack of about fifteen dogs calmly wandered past me. In the middle of the city?

The SPCA puts out an annual request for dog owners to 'be responsible' and sends a van out with a big net for catching stray dogs. The Government puts out tenders for 'the capture and elimination of stray dogs' and PAWS is a private organisation that sterilises dogs for free. But still they roam wild, and occasionally cross the road at the wrong time.

And then we had the tragedy of young children being attacked by a Rottweiler and an Alsation. These dogs were not strays. They were badly secured. The dogs were eventually put down.

Because of this attack which was covered in all the papers, the government decided to put a moratorium on the importation of dogs. The logic being that both these dogs were imported. What this means is that any expatriate thinking of moving to Mauritius will have to do so without their animals.

This is already causing major headaches for companies that have employees they want to bring to Mauritius. I know of a very large South African pharmaceutical company that was on the point of bringing a senior chemist to Mauritius. This is now on hold. Economic growth is going to suffer because companies will not have a free choice as to who to bring to their businesses.

So I beg you please, Mr Mauritius Government, lift the moratorium on dogs. It is a knee jerk reaction and will achieve absolutely nothing positive for Mauritius.

UPDATE: It now looks like the government allows dogs but on a case by case basis.

And while you are about it, please increase your efforts and budget on the sterilisation of pets, and the 'capture and elimination' of strays. It will positively effect the tourist experience in Mauritius and maybe save a life or two on the roads.

Change your strategy on dogs and you will improve the economy, road safety and tourism!

PS: You can ban Rottweilers if you like. They, like guns, are very dangerous in the wrong hands.

Cosmetic Dentistry in Mauritius - Before and After

2010-10-14T14:00:00.000+04:00

The journey is now complete. My teeth are transformed.

Before the exercise this is what they looked like:

And now, two weeks and Rs100 000 later, this is my new veneer enhanced smile.

Damn fine job if I say so myself. I wish I had done it years ago!

Mauritius Health Services - Part 3 - Cosmetic Dentistry

2010-10-06T12:05:00.000+04:00

In the interests of bringing the best possible information to the readers of this blog, I decided to fix my front teeth.

Since adulthood I have had a crowded mouth with my front teeth skewed and overlapping. I have been self concious about this and as a result have not smiled much. So, no, I am not a grouch, just a guy who smiles in secret.

Three different times I asked dentists to fix my teeth and they would say no, they don't like messing with healthy teeth. If I wanted them fixed then six months in steel braces with scaffolding outside my head would possibly solve the problem. I got as far as going to Curepipe and letting the orthodontists there poke around. They were about to start when I said no, I would think about it, never to return.

Then when I was visiting Dr C for my root canal (see part 2) I casually asked him if he could do a cosmetic job on my front teeth. 'No problem,' he said, 'It will take about a week'.

I could not believe it! Here I have endured this disfigured dashboard for ever and I could have had it fixed in a few days.

Monday 10 am:

I arrive and am warned that this session will take two hours. The worst bit was the first bit. Four injections into my front gums, the most sensitive part of the gum department. Soon my nose and lower face were numb and the grinding commenced. In an hour, my front teeth looked like your average Redneck's. Four teeth far apart from each other, all pointing in different directions.

The second hour was spent fitting the temporary teeth. Three went over the stumps and the fourth was fitted in front of the stump. The result was a set of gnashers that would have made Jack Nicholson proud. And these are only the temporary teeth.

Next Thursday, I go for my fitting of my new teeth. Cost: Rs 110 000 ($3 600)
I also got a quote for putting an implant into a gap I have had ever since an Air Mauritius pilot (Duncan G) dropped his plane on the runway causing my tooth to fall out. Quote: Rs 50 000 ($1 600).

The good news here is that you pay half to have the post put in (plus temp tooth) and the other half six months later when the bone has bonded with the post. This compares favourably with the equivalent done on my friend in the UK for over £2000 which is almost double the Mauritius price.

Mauritius Ranked 9th in World Economic Freedom Report 2010

2010-09-28T13:26:00.000+04:00

The 2010 Economic Freedom Report, produced by the Fraser Institute of Canada, ranks Mauritius 9th (using 2008 data).

So who was in the Top Ten? The winners are...

Hong Kong
Singapore
New Zealand
Switzerland
Chile
United States
Canada
Australia
Mauritius
United Kingdom

For those with an interest in how the rest of Africa did, it is better to start at the bottom and work your way up. Yup, I am sorry to say that Zimbabwe gets the wooden spoon yet again.

Top of the African list was Zambia at 48th. Other notables were Botswana (54th), Uganda (57th), Namibia (71st), Ghana (72nd), Kenya (75th), South Africa (82nd) and Nigeria (110). Our troubled neighbour, Madagascar came 102nd.

So lets have a closer look at the specifics, both for Mauritius and for those that were better than us:

This year, the score was made up of the following components: Size of Government, Legal System & Property Rights, Sound Money, Freedom to Trade Internationally, Regulation, Credit Market Regulation, Labour Market Regulation and Business Regulations.

For a more detailed description of what these components are and to read the full report, go to http://www.freetheworld.com/2010/reports/world/EFW2010_BOOK.pdf

Mauritius: Size of Government (7), Legal and Property (47), Money (42), Trade (38), Regulation (14), Credit Regulation (14), Labour Regulation (24), Business Regulations (25).

Lets look at who came first by category:

Size of Government: Hong Kong (obviously not counting China)
Legal and Property: New Zealand with Norway and Denmark in 2nd and 3rd place.
Money: Japan followed by the USA and then Taiwan.
Trade: Hong Kong followed by Singapore.
Regulation: Bahamas, followed by Hong Kong
Credit Regulation: Estonia, Kuwait and New Zealand tied first with 10/10.
Labour Regulation: Bahamas, then Hong Kong
Business Regulations: Belize followed by Singapore and then New Zealand.

I wrote a blog about this survey in January. It must have been the previous year's survey. You can read it here: http://mauritiusinsider.blogspot.com/2010/01/our-forgotten-right.html
Interestingly they have removed the Freedom from corruption score this time around. Also interestingly, Mauritius has improved from 12th behind UK to 9th ahead of UK. I am not implying anything!

Mauritius Health Services Part 2 - Dentists and other Private Practioners (updated)

2010-09-27T12:15:00.000+04:00

Most of this blog will be devoted to dentists.   But before I touch on teeth, let me quickly - and very superficially - discuss the other medical practitioners:

As we all know, people are different, and as some of us may know, doctors are people too. Therefore it will be extremely unwise for me to generalise. Instead I give three simple anecdotes that hopefully give some idea of private practice in Mauritius.

Anecdote One: Readers of the previous blog will know that I have a bit of medical training - not much, just enough to be dangerous. Back in March, 1994, a friend and I were preparing our house for a combined 40th and 50th birthday. I was the younger one. Keith bumped into a bush that housed a nest of Yellow Jacket wasps. These attacked him under his shirt and I guess he had about 20 stings in all. I was worried about an allergic reaction and noticed that his pulse was a bit thready and his skin pasty, but his breathing was OK. I called our local GP and in less than fifteen minutes she was there, administering anti-histamine and probably saving his life.

Anecdote Two: I was called by a friend who was having lunch at a seafood speciality restaurant. She is extremely allergic to fish (spot the mistake). She called me and said she was having an allergic reaction to her food although it was meant to be a beef curry. The GP in the first anecdote was not available, so I called another whom I hardly knew. In no time he was there, administering anti-histamines to my friend.

Anecdote Three: There is a Paediatrician in the North who is known and liked by all. In addition to this, he is a very good doctor. A couple with two young kids who had moved from Mauritius to London returned recently. When I asked the mother what was the best thing about coming back, she said it was this doctor.

The point I want to make here is that we are a village-like community and our doctors are part of our social world. As a result, their dedication and attitude to their patients is often at a higher level than you would normally expect.

Dentists

My wife and I are a dentist's dream. Together we could keep a team of twenty dentists permanently employed. My journey down the rocky road of root canals did not start well.

Our offices are based in Port Louis. In 1995, tooth ache occurred and I needed urgent relief. A colleague gave me the number of her dentist. It was just over the road. My first Mauritian dentist. I walked into the room which was a surgery with a tiny panelled-off waiting room. I should have realised something was amiss when I noticed the arm pads on the dentist chair were badly scratched.

In seconds he had me on my back, mouth agape. Then the drill started. I have never experienced such pain. My fingers clawed at the armrests, removing bits of fake leather and sponge. Some wood too, I think. As soon as he stopped, I jumped from the chair and dashed out the door. I paid later. It was not a lot.

Back in office, I went to my colleague and asked her why she had recommended this dentist as he was a barbarian. 'Oh, I hate injections,' she said.

I have since had a number of treatments from dentists in Port Louis and Grand Bay. The Grand Bay dentist did not have an X-Ray, so I never went back.

Apart from the lack of x-ray machines and aversion to Lidocaine, my other general complaint about these dentists is that they never finish the job in one go. Drill today, fill. Come back next week. Remove fill, put new fill. Measure crown. Come back next week. Remove fill, put new fill, fit crown. Come back next week. Move on to next tooth. Drill, fill, come back next week. I think you get the picture.

It gets worse. The orthodontists and their preferred dentists all live and work in the middle of Mauritius (Quatre Bornes / Curepipe). So if add the travel time from the North or West, it is easy to spend half a day a week getting your teeth done.

And now for the good bit...

I never thought I would use the words DENTIST and PARADISE in the same sentence, but I must tell you about the best dentist experience I have ever had, in any country, and yes, this was in Mauritius, and it was close to where I live.

First of all, the practice involves two dentists and an orthodontist and a dental surgeon, and is set in the tranquil grounds of a Colonial Plantation Home near the private schools in the North. Their rooms are a converted farm building, and they have managed to create the effect of a professional clinic inside the old stone and wood architecture:

They have the best equipment I have ever seen. Below is their x-ray machine, which to an ignoramus like me, looks very nice. In addition to this, the practice is network linked. So the dentist refers to the x-ray on his screen next to the dental chair. He can also see when his next appointment is due, and when I walk out, my invoice is waiting at reception.

There are three or four theatres all equipped like the one below. There is also a crown making machine. This is a high tech surgery.

All this equipment comes at a price, so don't expect to be charged the 'normal' rate when you come here. This is a five star practice and the prices are five star. I have an appointment here tomorrow. I will update this blog with my experience and prices as soon as I can.

Update 28 September 2010

Met with Dr C (I waited exactly 2 minutes) who x-rayed my fangs. We then compared this x-ray to the one he took two years ago, zooming in on the offending tooth that has been quietly harbouring an abscess for the last two years. He also noted a broken crown. Then it was off to his room (what do you call it? Theatre, Surgery). Anyway, it looked like the one in the picture above. As I reclined myself in the chair, I could see my x-ray of the offending tooth above me on a flat screen. On my right, Dr C showed me a computer generated 3D model of the broken crown, which he studied to see why it had broken. Perhaps he had ground the wall on the one side too thin when fitting it, he mused. I was suitably informed. His crown machine would make another to the original design ready for me tomorrow.

Then it was time to open my mouth and endure drills, crowns being forcibly removed and almost no pain (he hit a nerve at the end). No injections this time. No prices yet, and I must come back tomorrow, for part two of root canal and crown replacement. The antibiotic prescription and appointment card were waiting at reception on my way out.

29 September 2010

My face is numb. At least four injections into the tooth and its surrounds have turned my face into a lump of putty. What was left of the nerves were deleted from the canal, and a lot of cleaning was done. Lazer sterilization complimented the mechanical scraping. Then neat plugs of gunk were piped into the now vacant canals. Two on site x-rays confirmed all was well.
All the time, I knew what was being done. Dr C kept me briefed, and I could see the x-rays on the screen above me as they recorded the progress.

The broken crown was replaced free of charge as Dr C felt it was his fault the first one had failed. My bill for yesterday and today was Rs16 000 (about $320). You can get this done much cheaper in Mauritius, but not in the same way.

Forthcoming Attractions:

Starting next Monday, I will get four caps put on my front teeth. I have had a crowded mouth the last 40 years and would like to smile with confidence. Quote: Rs110 000 (about $3500).

Health Services of Mauritius - Part One

2010-07-21T20:17:00.000+04:00

To summarise, for those in a hurry:

Mauritius had a third world health service seventeen years ago, but now in some places, it is as good as many first world countries and constantly improving (unlike some countries nearby that I could mention).

___________

Here follows part one of my random wander through the health services of Mauritius:

My first exposure was in August 93 when I needed a medical check-up to get my work permit. I was sent with a personal letter of introduction to the City Clinic in Port Louis. I walked into a fairly Spartan medical facility where I was efficiently processed. My blood was taken, my rays were x'd and my bottles were handed in. Unremarkable. Afterwards, I was informed that these guys were the only ones in Mauritius with an MRI.

My second exposure occurred when I was called from our bungalow on the beach in Grand Bay to attend to an injured man. I worked as a volunteer paramedic in South Africa before moving to Mauritius, and had brought my spine-board with me. The man had been stabbed and had fallen into the sea from the road, hitting his head. We loaded him onto the board, and flagged down a truck. In those days an ambulance was too far away. If it had happened today I could have called on two ambulances less than a kilometre away in either direction.

The truck took the patient and myself to SSR Hospital near Pamplemousses. SSR (Sir Seewoosagur Ramgoolam) is famous for its cardiac unit. It is not a private hospital, and is not going to win any inter hospital beauty competitions. We carried him into the emergency ward and after giving the doctor my assessment, we left (with my spine board and without my patient).

The injured man came to our house a few days later to thank me. So the hospital worked.

A number of private clinics have popped up over the years, and many expatriates have visited them. There are three in the north. The only criticism I can give one of them is that they tend to go overboard with their diagnosis and treatment. My wife's sprained wrist was put in plaster, for example, when a bandage would have done the trick.

The worst example was when the same clinic diagnosed a young girl with a brain tumour causing incredible stress to the family, who went to South Africa for a second opinion. The clinic's diagnosis of a tumour was in fact a bone.

Over-diagnosis is a constant problem and I think it is part of typical Mauritian conservatism. We use up our capacity for risk taking driving to work, so the rest of day is spent being very careful, restocking our bravery bank for the drive home. Erring on the side of caution is better than the opposite, I suppose.

I have stayed overnight in a private hospital once in Mauritius. Seven years ago, I was put into a private ward. This had one bed and a shower / toilet en suite. No extras. My wife had to bring me a decent pillow, toilet paper, shampoo, food and water.

My heart was 'racing away', as my cardiologist described it, so I was hooked up to a heart monitor. This 'private ward' had a huge glass window in it facing the nurses station (which was fine) and the lift lobby (which was not fine). Visitors and mobile patients walked past the window, peering in at me lying in state, plugged into the machine that goes 'ping'. They would call their friends and gaze at me and the machine through the window. I would chase them away by moving my hand up and down under the sheets.

The next morning a crowd of nurses came to tend to me. One of them tried to take my blood using a very thin needle. Blood is thick and needs a reasonable gauge needle to effect extraction. All she did was poke around like some blind mosquito until I chased her away. I don't know who trained her, and none of those with her helped her.

I suppose this was a good hospital in retrospect, as it made me determined never to get sick again.

The Grand Bay clinic recently treated a friend over two nights with a kidney stone. They were fast, efficient, well equipped and reasonably priced. And it was an emergency admission. The friend was impressed. I was treated there once two years ago by a podiatrist who injected my foot with cortisone. I hardly waited, it was cheap, and most importantly, it worked.

And now, finally, what I have been building up to in this blog, is the pinnacle of Mauritian Medicine...The Apollo Bramwell Hospital. This is a new private hospital on the grand scale and we gave it a test drive yesterday.

The Apollo Bramwell Private Hospital in Moka

My wife went went in for a surgical procedure requiring anaesthetic.

Registration went without incident and twenty minutes later, she was in her private room (Rs4 500 per night but included in the package). It had its own cable TV (hotel bouquet of channels), shower/toilet complete with soft fluffy towels, two-ply toilet paper and a welcome pack of toiletries and slippers. A very large arm chair which converts into a bed for visitors (great idea), three remotes - TV, Nurse Call and Bed Adjust, a programmable safe, a telephone and adjustable airconditioning.

Areas to improve: No Wifi and the north facing wards get blasted by afternoon sun. The blinds are ineffective.

The operation package (two and a half hours of anaesthesia) cost of Rs140 000 compared to the same quote from an SA day clinic of Rs170 000 (verified and excluding air fares), and from Reunion / France Rs360 000 (not verified). We were tempted to go to Reunion or South Africa but chose Mauritius, and Apollo Bramwell instead.

The staff were plentiful, attentive and professional. There were lots of trainees taking blood pressures and temperatures and I saw from their badges that they were attending the Apollo Bramwell Nurses College, so consistent training of nurses is to be expected at last. There is a healthy dose of staff with experience from India or the UK.

Many of the doctors in Mauritius are trained in France or India, and I rate the French medical system as one of the best in the world. The Indians have the advantage of getting lots of practical experience, plus a good education. Nurses in Mauritius are a different kettle of fish and I have seen a broad spectrum of nursing competence. I am sure this is improving, having seen what Apollo Bramwell are producing.

The dinner menu last night was:

Vegetable Soup

Green Salad

Roast Chicken in honey with vegetables and rice / stir fry beef / vegetarian option

Fresh Fruit Salad with Yoghurt.

Not bad!

The only unsettling thing was the sign saying 'Basement: Mortuary and Kitchen'.

That was a joke. It just said Mortuary. I don't know where the kitchens are. Still unsettling.

Please take this blog with a pinch of salt. It was a personal survey taken over seventeen years, and I have left out one of the best private hospitals in Mauritius - Clinic Darne. I have not experienced it in its newly renovated state, except to have an X - Ray (which was fine, and I liked the aquarium and the short wait in the waiting room).

Part Two will cover Dentists and Private Practitioners.

Residence in Mauritius - The Whole Revised Picture

2010-07-19T12:55:00.000+04:00

This post was first published on the 7th August 2008. A lot has changed since then, and so here is the revised version.

To save you having to read this whole blog, and to keep pace with the ever changing rules, please contact our office or click here to go to the Board of Investment's latest update.

In the budget of 2007, the Government announced 'eligibility for Permanent Residence Permit and the right to purchase property to foreigners having at least three years' working experience in Mauritius and earning a minimum monthly basic salary of Rs150 000'.

To see where I got this, click on http://www.deloitte-mu.com/NewsRoom/Budget2007/Budget2007.pdf

So three years ago, many expatriates and potential expatriates got excited by this budget promise. And what do we have to show the patient foreign investor / resident three years later?

Nothing.

The Board of Investment tells us it is 'with the Prime Minister's Office'. While this is correct and is where it should be, it has been there since 2007. The PM's Office is not receiving applications for permanent residence because the guidelines have not been finalised yet, they tell us repeatedly.

Regular readers of this blog know that I try to put a positive spin on as much of Mauritius as possible, but in this case, I have to tell it like it is.

Permanent Residence is an unfulfilled promise.

Ahhh, but what about people who buy in an IRS or RES scheme? Are they not Permanent Residents? The estate agents selling you these homes will be quick to say that yes, you are. Well sorry to disagree, but in my book, a Permanent Resident gets the right, subject to PM's approval, to buy (and build) residential property anywhere, not just in some fancy enclave.

In addition to this somewhat skittish approach to attracting foreign investment, we have had a bit of a negative reaction to the inflow of foreigners to Mauritius, particularly South Africans.

Emotions are high on all sides. Rumours, some justified, most based on fiction, abound. The bottom line is that across the spectrum, Mauritians are a bit uncomfortable with certain types of South African. Some don't like the loud short tempered types, some don't like the senior executives hired in to streamline organisations, some don't like the restaurant owners who offer something that attracts foreigners, and some don't like South African expats because they are white.

This anti foreigner reaction has had the effect that the requirements for a residence permit have been tightened. I must personally agree that the door was opened a bit too wide. Every country has the right to set its entry standards to a level that will not threaten their social or economic future.

Therefore, the new revised menu is now presented for your enjoyment:

The Mauritius Menu of Residential Options

Starter

Occupation Permit without the option to convert to Permanent Residence (yes I know, none have the option for the time being, but in case the guidelines do come through one day, I must assume that the Government will deliver on its promise).

Main Courses

Occupation Permit with the option to convert to Permanent Residence
Retirement Residential Permit with option to convert to Permanent Residence
Right to Occupation Permit due to ownership of an IRS unit.
Permanent Residence (currently not available).

Desert

Citizenship
Tax residence

Occupation Permit without the option to convert to Permanent Residence

This is the closest thing to the old combination work and residence permit. It is issued for a period of three years, and can be renewed on application, indefinitely. The minimum requirement is that the bread winner earns a salary of more than Rs75 000 per month (up from Rs30 000). This is about $2500 per month.

UPDATE: This threshold has been changed (yet again) to Rs45 000 per month.

In view of the constantly changing of requirements, I recommend that any serious applicant contact our office, or the Board of Investment for the latest updates.

The breadwinner and his dependent family may work and live in Mauritius. As soon as a child turns 18 and is not a student, they need to get a job, get married to a Mauritian or get out. That job also has to pay more than Rs75 000 (now Rs45 000) per month. This is called the Professional Occupation Permit.

Other ways to qualify for this permit are

As an Investor and have a company with an annual turnover of Rs4 million with an initial investment of $100 000 (plus Rs50 000 guarantee).
As a Self Employed person and earn Rs600 000 p.a. ($20 000) with an initial investment of $35 000 or equivalent (plus Rs50 000 guarantee).

Occupation Permit with the option to convert to Permanent Residence (not official)

The guidelines below have not been confirmed and while we wait for the Prime Minister's Office to issue these, we cannot guarantee that they will apply. We have kept them as an indication of how the government was thinking in 2008.

In order to have the option to convert to Permanent Residence, the holder must achieve the following minimum levels for three consecutive years and then apply:

have a salary of over Rs150 000 per month ($5, 500)
have a company with turnover of at least Rs15m p.a. ($555 000)
be self employed and earn at least Rs3m p.a. ($111 000)

Retirement Residential Permit with option to convert to Permanent Residence

A retiree may acquire a residential permit (that does not permit him to work, obviously because he is retired!) by depositing $40 000 per annum into his personal rupee account in Mauritius. He may then spend this amount as he sees fit. This requirement refers to only one individual in the family.

After three years, the retiree may apply for Permanent Residence once the guidelines for permanent residence have been issued. Until then, renewal of the permit will be required.

Right to Occupation Permit due to ownership of an IRS unit

The owner of an IRS (Integrated Resort Scheme) unit may acquire an Occupation Permit that entitles him to live and work in Mauritius for as long as he holds the permit. After three years there is no clarity as to whether this may be converted to Permanent Residence - this is a common misunderstanding. If the IRS is owned by a Company, then this company can nominate one individual to be the 'resident' who then gets the occupation permit.

Permanent Residence

What's so great about Permanent Residence? The main benefit of being a Permanent Resident is that you may apply to purchase a home anywhere in Mauritius. This is a much cheaper option than purchasing a home in an IRS, unless you want a house on the beach. In this case, I refer you to my blog on property.

The other great thing about permanent residence is that if you have built a business or career in Mauritius, it does not hang on the thread of permit renewal. I have been in this position, and it can be very scary to build a business over the years and have your livelihood subject to the renewal of your occupation permit.

The finer details of permanent residence are still being thrashed out by the government and we eagerly await clarification on a number of issues. Of particular interest is the the question of how long this 'permanence' is. When the dispensation was first described, it set the term for ten years. Some have said that implicit in this ten year threshold, is the ability for the permanent resident to apply for citizenship. Watch this space.

Citizenship

A person may apply for citizenship by Naturalisation if one has lived 'continuously' in Mauritius for 5 years. The law is vague and the application thereof highly discretionary. The Prime Minister administers this and citizenship is a privilege. If someone has been living in Mauritius for over five years (aggregate having subtracted all the times of absence) they may start the application process. It may be declined or it may be successful. I don't know of any magic formula that can guarantee success. Perhaps it will be easier for permanent residents to apply for citizenship in the years ahead. I hope so.

Tax Residence

Tax residency has got nothing to do with any type of permit or citizenship or residence status.

You have to reside in Mauritius for 182 days per year in the first two years, and 91 days each year thereafter to qualify for tax residency. When you have stayed in Mauritius for the first 182 days that year, you may apply to the Mauritius Revenue Authority for a tax residence certificate. Once this is in your possession, it is possible that you may not be taxed in other countries that have tax treaties with Mauritius (including UK and South Africa).

Extinct Scheme for Residence

Please note that the Permanent Residence Scheme whereby an investment of $500 000 in Mauritius gave one permanent residence status is now, like the Dodo, extinct.

For more detailed information on any of the above schemes please go to http://frontfin.com/prs

Throwing the Baby out with the Bath Water

2010-05-13T14:10:00.000+04:00

The cacophony of complaints about South Africans living in Mauritius has started to hurt my ears.

The reactions of the Government have been understandable to a point. But now it's time to have a hard look at all this nonsense, and the damange we are doing to ourselves in the long run.

Mauritius opened its doors to foreigners about three years ago. In fact, it almost took the doors off their hinges making it easy for almost anyone to move to Mauritius and get a permit for three years.

The result of this relaxation was that a broad spectrum of hopeful settlers arrived en masse and started setting up businesses, opening restuarants, acquiring board positions on local companies, entering into joint ventures with locals, putting their kids in private schools, saving dogs, teaching sports, donating to charity, soaking up the top end of the rental market in Black River and Grand Bay, developing property, and occasionally acting in a loud and uncouth manner towards locals.

And what have we locals done in response?

We have gathered in huddles within each of our communities and pointed our fingers at them for failing to integrate. That they cluster in Grand Bay and Black River because they don't like Quatre Bornes or Suillac.

As a result of our outcry, the Government then raises the entry levels for expatriate employees from Rs30 000 to Rs75 000. And adds a bit of discretion (and uncertainty) to the exercise by creating a panel at the BOI to evaluate who should come in and who should not.

The net result of this is that South Africans in and out of Mauritius have got the message. They are no longer welcome on this island. So not only is Mauritius missing out on South Africans with great skills, business ideas and fat bank balances, but it is also chasing the ones they have here out of the country.

For example, I met a lovely lady yesterday. Her application for a work permit was turned down because Mauritius does not need people with her artistic skills. So she must stop doing the things she is good at and lives for, and at the age of 35 must remain at home, looking after her children.

The problem is that her husband sits on the board of a major Mauritian financial institution and has his own job of looking after a portfolio of funds in excess of Rs4 Billion. They are both now going to return to South Africa. Obviously their feelings will not be that warm to this country in the future.

Maybe Australia or England will be lucky enough to get them if they decide to move to another place that promises a good future for their children.

So listen to me please, fellow Mauritians. Open your hearts before you open your mouths. Consider what it must be like to arrive in a foreign country where you don't understand half of what everyone says, where you have no constitutional rights, where everything is new and strange. Consider what it must be like to move here three years ago with promises of permanent residence and the ability to purchase your own home, only to have your wife denied a work permit, the promise of a home of your own broken. And to be told you are not really welcome anyway.

I sadly fear that we have thrown the baby out with the bath-water.

PS I got a comment from the lady I describe above.

Thanks Captain Kirk, how funny to see my story : ) I have really loved my three odd years here... In fact, because I so enjoy the culture and the different life here, I have gone all out to get local! I have taken weekly French lessons, and can now follow a conversation in French, and basic Creole. I shop at the Vacoas market every week with relish. I have moved away from Grand Bay and Black River, and live in the middle of the Island, which I love. And my best friend is a local Hindu Mauritian. We have donated generously to PAWS, which is fantastic and I have used my newly learnt creative skills to raise funds for the poor. I have put my heart and soul into Mauritius, and have loved being here. It's a very special, and beautiful place with awesome spirit and joy. All we need to do is look.

Boy, did we mess up with this one!

Ghettos and Aliens

2010-02-02T15:15:00.000+04:00

When I read the steady stream of anti-expat articles in the press, usually levelled at the South African community, I notice one of the common threads is that South Africans live in enclaves, or ghettos.

Let me address this.

On Sunday evening, we were entertained at the home of an expat.

Now before you read on, test yourself: Guess where this expat lives and from whence he came?

Most of you will probably guess that he lives somewhere on the north or west coast, and that he is South African. Well you would have been wrong on both counts. He is an expat from India and he lives in Quatre Bornes.

Now let's have a look at this argument from the other side: How many expats from South Africa do you know that don't live in Blue Bay, the West Coast (Tamarin / Black River) or the North - within 15 minutes of Grand Bay, on or near the beach?

Very very few, we will all agree.

Why is that?

English Schools and Near the Beach are the two principal requirements of most South Africans arriving in Mauritius.

What about Moka?

Moka is inland from Port Louis and sits at the base of Le Pouce mountain just off the freeway.

Moka has a junior and a senior English private school. It is close to Nandos, Milky Lane, Game, Shoprite, hospitals, VW and Audi and is only 30 minutes from Black River, or Blue Bay.   And my Indian friend lives about ten minutes from Moka. So why do no South Aficans live in Moka? Is the beach really that important?

For the new arrivals, the beach is usually a non negotiable aspect to their choice of abode. They have chosen to come to Mauritius, tropical paradise. White sand, blue water, pretty boats, a tourist lifestyle. So yes, the beach is that important. And then the fact that there are so many other South African's living nearby makes the choice easier.

Any expat arriving in a new country feels alienated. They are Aliens after all. To be close to others in the same boat is a comfort, and also a confidence builder as the longer serving expats show the newbies the way.

Hopefully this explains why the SA expats live in enclaves or ghettos. It is not that they shun everyone else. That does not cross their mind.

Moving onto my next point about Expats:

The huge adjustment for every single expat is coming to terms with being an Alien. You can't just dump your suitcase in your new house and get on with life.

No, there are many stumbling blocks. Here is a short and very incompete list of nasty surprises:

You put 'holiday' on your entry form, and yet you came to live and work here. That will take a morning at the passport office to fix.
You did not bring your UNABRIDGED birth certificate with you. That means another slow dance with SA Home Affairs.
There is a deposit or guarantee of Rs40 000 per person applying for an Occupation Permit. What's this for? No one tells you. Let me tell you, then...It's so the government will not be out of pocket for the airfare if they have to deport you.
The expat private school fees are higher than those for the locals. No idea on this one. The reason I was given was that 'expats are richer'.
Renting a house means you pay the agent one month commission. And the landlord does the same. Why. Because that is the way we do things here. This is not effing SA!

I am sure there are many more possible additions to this list. But each one of these 'surprises' has a lesson in it.

Don't fudge the bureaucracy. Be honest, and complete. And ask if you don't know.
SA has this unique 'Abridged' birth certificate. No one else in the world has them as far as I know. Sorry, but you can't use it outside of SA. Not our fault.
The deposit or guarantee makes sense to me. Only it never gets explained to anyone so the Alienated Alien thinks that it is just another attempt to irritate him. Cool it. Accept it.
Expat school fees are unfair. I can't defend this one, they are.
Both renting parties paying the agent is the Mauritian way. As a new arrival here it is one of your biggest challenges to stop using your previous country's frame of reference. Nothing irritates us more than hearing "This would never happen in SA!"

The biggest general message I can give to all Expats is to understand that you are not Mauritians, you are Aliens. You are different. And the more different you act, the more you look like Aliens to the Mauritians. Blend in. Learn Creole. Make some local friends. You will be amazed at how many nice Mauritians there are out there.

.

Mauritius comes 6th in the Green World Cup

2010-01-29T21:44:00.000+04:00

Green Parakeets - Seen Occasionally in Mauritius

Ha! At last we beat Singapore at something.

The Environmental Performance Index put Mauritius 6th in world.

Those better than Mauritius in descending order were Iceland (1), Switzerland (2), Costa Rica (3), Sweden (4) and Norway (5). Since all these countries except for Costa Rica are hidden under a block of ice for most of the year, it's not surprising that they beat us. No one went outside to mess things up. Well done Costa Rica. We'll get you next year!

How did my usual benchmark countries do? UK came 14th, Singapore 28th and South Africa, a top wildlife tourist destination, came 115th out of 163. We Mauritians will have to show you guys how to fill out these surveys!

This biannual joint production from Yale and Columbia Universities measures no less than 37 categories listed below, many of which I don't understand. It is clear that Mauritius is not a perfect green state by any means. Categories 21, 22 and 23 to do with nasty industrial emissions are very low down in the world pecking order.

Our water quality index at 93rd is a bit embarrassing considering how small our country is. I would have thought that it is much easier to control quality with small production facilities compared to huge diverse countries. South Africa came 32nd here. But at least in Mauritius everyone is close to a tap. Mauritius came 5th on access to drinking water. Just don't drink it.

Below is the long and largely incomprehensible list of categories. These academics should try to make this survey a bit more user friendly. And their website http://epi.yale.edu does not show you much without forcing you to download large pdf files.

Environmental Health 35
Ecosystem Vitality 16
Environmental Burden of Disease (category) 45
Air Pollution (effects on humans) 6
Water (effects on humans) 42
Water (effects on ecosystems) 57
Air Pollution 106 (not very good considering our size and lack of industrialization).
Biodiversity and Habitat 108
Forestry 119 (reasonable since we have no forests)
Fisheries 2
Agriculture 21
Climate Change 29
Environmental Burden of Disease (Indicator) 45
Urban Particulates 4
Indoor Air Pollution 5 (surprising considering the amount of curry consumed in Mauritius)
Access to Sanitation 51
Access to Drinking Water 5
Water Quality Index 96 (Drink bottled or filtered water)
Water Scarcity Index 5
Water Stress 4
Nitrous Oxide Emissions 146 (not good at all)
Sulfur Dioxide Emissions 137 (ditto)
Non Methane Volatile Organic Compound Emissions 152 (there is a pattern here)
Ozone Exceedance 3
Biome Protection 114
Critical Habitat Protection 12
Marine Protected Areas 109
Growing Stock 98
Forest Cover 106
Marine Trophic Index 3
Trawling Intensity 3
Pesticide Regulation 30
Agricultural Subsidies 2
Agricultural Water Intensity 120
Geenhouse Gas Emissions Per Capita 42
Industrial Carbon Intensity 2
Electrical Carbon Intensity 137 (This should improve).

With all these high numbers I don't know how we came 6th. We came 54th in 2008.

Welcome to the Land of the Free!

2010-01-25T14:00:00.000+04:00

I love these surveys!

This time the yardstick is Economic Freedom. Here are the rankings I always look at first: UK 11th, Mauritius 12th. South Africa 72nd. Oops.

This survey is conducted by the Wall Street Journal together with top Washington think tank The Heritage Foundation. Their definition of economic freedom is as follows:

"Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself."

So well done, super democratic Mauritius.

The survey measured economic freedom in ten categories and I have put the scores of the UK, Mauritius and South Africa next to each one.

Business Freedom, UK 94.9, MU 82.2, SA 73.0
Trade Freedom, UK 87.5, MU 85.6, SA 76.0
Fiscal Freedom, UK 61.8, MU 92.5, SA 69.1
Government Spending, UK 41.9, MU 83.4, SA 76.8
Monetary Freedom, UK 73.7, MU 71.2, SA 70.2
Investment Freedom, UK 90.0, MU 85.0, SA 45.0
Financial Freedom UK 80.0, MU 70.0, SA 60.0
Property Rights UK 85.0, MU 60.0, SA 50.0
Freedom from Corruption UK 77.0, MU 55.0, SA 49.0
Labor Freedom UK 72.8, MU 78.5, SA 59.0

The top ten countries/territories in descending order are Hong Kong (1), Singapore (2), Australia (3), New Zealand (4), Ireland (5), Switzerland (6), Canada (7) , USA (8), Denmark (9), Chile (10) and then UK (11) and Mauritius (12). Not a bad list of countries although I think Hong Kong is a bit lucky not to be thrown in with China (140).

The worst countries include the usual candidates, namely North Korea, Burma, Zimbabwe, Eritria and Cuba.

Iraq, Afghanistan and Sudan failed to write the test as did enigmatic Liechtenstein.

This survey is full of useful information including a qualitative analysis of each country. The analysis for Mauritius is quoted below:

"Mauritius’s economic freedom score is 76.3, making its economy the 12th freest in the 2010 Index. Its overall score is 2 points better than last year, reflecting major improvements in freedom from corruption and labor freedom.

Mauritius is ranked 1st out of 46 countries in the Sub-Saharan African region, and its overall score is well above the world average.

Despite the global economic turmoil, Mauritius’s economy has shown a considerable degree of resilience, and an environment already conducive to dynamic entrepreneurial activity has moved further toward economic freedom.

The island’s institutional advantages are noticeable. A transparent and well-defined investment code and legal system have made the foreign investment climate in Mauritius one of the best in the region.

Taxation is competitive and efficient. The economy is increasingly diversified, with significant private-sector activity in sugar, tourism, economic processing zones, and financial services, particularly in offshore enterprises.

Although state monopolies exist, Mauritius has improved its management of public spending.

The judiciary, independent of politics and relatively free of corruption, provides strong protection of property rights."

There is more about Mauritius and the other countries on their website:

http://www.heritage.org/Index/Ranking.aspx

This is a very informative website, and I have not done justice to the information in it. Go look.

New Eyes bring Bright Ideas.

2010-01-23T15:25:00.000+04:00

One of my first friends in Mauritius was a Brit called Jim. It was 1993 and Jim was ex army. His business idea was to bring a converted military landing craft to Mauritius and adapt it for para-sailing.

Until Jim came along, if you wanted to para-sail in Mauritius you were either pulled up off a beach or off a platform moored in the lagoon. That was the easy bit. Landing was much trickier, with wind direction, boatmanship and the actions of the dangling tourist all contributing to dodgy landings.

Jim's boat (like the one above) had a flat deck at the back, and a winch between it and the helm. Tourists were gently released off the back of the boat, and at the end of the ride, gently wound back in. The boat could adjust its speed and direction to cope with any change in the wind. Everything was controlled, while both safety and enjoyment were improved. His idea was a winner.

He went through the bureaucratic hurdles of setting up a company - it was much more complicated in those days - and formed a partnership with a fiberglass company to make the molds. Soon there were three of these boats working in the Grand Bay, Trou Aux Biches area.

We had a great time, using his boat for diving and taking the kids for flips in a parachute. Then, one day he dropped by our house to tell me his boat had been stolen. The rumor was that an operator with a speedboat and a platform had taken the boat off its mooring and scuppered it where the water was too deep for salvage. It has never been found.

Jim was short one boat and out of a livelihood. He had also got tangled up with officials who claimed he was licensed to manufacture the boats but not to use them. He disagreed and was getting frustrated. With his money and his work permit running out fast, he had to leave.

Goodbye Jim. His boat design is still being used, and probably the fiber-glass company is doing well out of the molds.

I have told this story to highlight a few facts of life in Mauritius for anyone thinking of starting a business here:

Mauritians are like anyone else in the world - they don't like competition. The difference here is that in this small community, it's easy to get at an outsider. Everyone has a friend somewhere.
Don't try to fudge the bureaucracy. Make sure of your facts and don't give someone an easy excuse to mess you around.
New eyes see many opportunities - just make sure the market is big enough (it usually isn't)
Choose your partners with great care. The perfect foreigner is the one who comes here, gives us a good idea, and then goes away again.
The worst kind of foreigner is the one who comes here with a good idea and puts us locals out of business. I know it's survival of the fittest and all that, but try and tell that to the guy going out of business. He is going to play dirty. Plan for this.
It's a small market. One idea might not be enough. I remember someone had a great idea to bring in jumping castles. Parties are on the weekend. There are probably three that would need a jumping castle each weekend in Grand Bay. Is that going to be enough to live off? The jumping castles are still here by the way. I don't know if those foreigners are.

And now for an idea that was given to me by a new arrival from Cape Town. I have put this idea in this blog because I want Mauritians to use this idea - no strings attached.

A Great Business Idea For Mauritians in Mauritius.

Mauritius has one of the largest ring reefs in the world. This reef encircles the island, and acts as a barrier to the big seas outside. As a result we have masses of safe lagoons.

What about a boat taxi service?

There are many fishermen who struggle to make a living who could adapt boats to pick up people at pre-arranged spots on the beach and drop them off at other 'boat stops'. We could use existing jetties as they are all required to give the public access in any case. The beaches are free for all.

The government (Tourist Authority probably) could regulate the boats from a safety aspect, and suddenly a tourist who is at Club Med and wants to go to Grand Bay could get on a boat and enjoy the experience. The shops and restaurants would also benefit.

There is a boat taxi that exists between Le Canonnier Hotel, Royal Palm and Le Mauricia, as they are all Beachcomber Hotels. But it only stops at these spots and it is only for hotel guests.

In fact the only opponents to this idea would be some hotel operators who don't want to see all those precious wallets/guests leaving their premises.

So how about it, fellow Mauritians? Are we going to be thwarted by a few big hotel owners, or is there something in this idea that will benefit many good hard working Mauritians? And it will give the tourists something else to enjoy on their holiday.

A last word to all those Mauritians that are feeling uneasy about the influence of foreigners...remember your forefathers were foreigners too.

Welcome to the "Tens"

2010-01-01T12:59:00.000+04:00

What do we call our new decade?

The first ten years (2000 to 2009) were called the 'noughts'. Or Naughties? Really? I can't imagine a cd with the title 'Noughts Greatest Hits'. It doesn't quite have the same feel as 'Sixties Greatest Hits'. And in keeping with this numbering tradition, we are now in the ten's. Until 2013, when we will be in the teens. This millennium is still clearly suffering from the same identity crises that any child has as they transit adolescence.

On the other hand, I left my adolescence behind in the seventies. At the age of 53, I look at the next ten years in front of me with some panic. Will this be my last active decade? How long can I keep on skiing? Or mowing my lawn? Or taking those magnificent walks around Piton?

View from one of my favourite walks above Piton.

So this is my decade dedicated to health. Shed the lard, avoid alcohol, cut the carbs, exercise regularly and enjoy life as much as possible within the above restrictions.

Ahhh. Now the panic has been replaced with excited anticipation.

The Captain wishes all Mauritian residents a peaceful, healthy and fulfilled next ten years.

The Holiday Tree

2009-12-09T11:20:00.000+04:00

It's that wonderful time in Mauritius again.

The tourists are everywhere. The taxi drivers are starting to smile - it's been a while.

Bodies bask on the beaches, enjoying the 30 degree warmth as Europe braces for another snowy snap.

From Anahita to Bel Ombre, the blue sea sparkles invitingly from lush green fairways.

Flamboyant Tree - Ritesh SEEBORUTH, http://mauritius22.blogspot.com

And everywhere you drive, the fabulous Flamboyant trees show off their splendour. Until the first cyclone blows all the flowers off, that is. Then we have a red carpet for a day or two.

We also have a carpet of mangoes after a cyclone. In fact, it is an interesting study of demand and supply. Compare the price of mangoes before the first cyclone (Rs10) and after (Rs1). The price goes back up after about a week when there are suddenly no mangoes to be had, come hellishly hot weather or cyclonically high water.

You may notice that I seem to be a bit stuck on this cyclone theme. At the time of typing, Cyclone Cleo is heading this way. Winds inside the cyclone are over 200 km per hour. The forecasters are predicting that Cleo will start weakening before she hits Mauritius on around Monday 14 December. I hope so. I want to play golf at Bel Ombre this weekend.

But back to the main topic of this blog...Flamboyant Trees. They are our Holiday Tree, the symbol of Summer in Mauritius. Who needs a Christmas Tree when you have bright red and orange Flamboyants decorating the island?

If you really must have a Christmas Tree, get a fake one. We have so few conifers in this country, I suggest we spare these poor pines their annual execution, and rejoice instead in the natural beauty of the Flamboyant. And the unnatural beauty of the little plastic tree that folds away for next year.

The Crook Hit Parade

2009-11-19T09:02:00.002+04:00

The Corruption Perception Index is out. How did we do out of the 180 countries included?

Mauritius 42nd. That's down one place from last year. Oops.

Our friend Singapore nailed this survey, coming third after New Zealand and Denmark.

And our African neighbours?

Botswana was the least corrupt at 37th. Then Mauritius. Next down was Cape Verde on 46th, then South Africa on 55th. Well done? I suppose relatively speaking it could be worse...see below:

Other SADC countries were less impressive: Namibia 56th, Swaziland 79th, Lesotho 89th (with Malawi) Madagascar 99th. Bottom of the SADC pile are Mozambique 130th (equal to Nigeria) and our sick friend Zimbabwe at 146th. Other regional notables were Angola and the DRC tied at 162nd.

No surprises who came stone last. In descending order are Iraq, Sudan, Myanmar, Afghanistan and finally Somalia.

Draw your own conclusions.

To read the actual survey, go to:

http://transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table

Chronically Cyclonic?

2009-10-26T11:58:00.000+04:00

I consider myself to be a cyclone guru. Most people in Mauritius would agree with me. They also consider themselves to be cyclone gurus.

Today is November 15th, 2009, the official start date of the cyclone season, so I snuck in and updated this post. Our first cyclone of the season arrived on time. Early this morning Cyclone Anja was given her name. She has been hovering as a numbered storm near Diego Garcia for the last few days, but is now heading south south-west. Anja looks like she could threaten Rodrigues (an island to the east of Mauritius) and then head south. No cause for concern at this stage.

Cyclone Anja - 15 Nov 2009

Risk of cyclones exists from Spring to Autumn, with peak season in February.

Cyclone info for Dummies:

Warm seas cause cyclones. That is why they appear in the southern hemisphere in our summer and the northern hemisphere in theirs.

What is the difference between a Cyclone, a Hurricane, a Typhoon and a Tornado?

Cyclones in the Indian Ocean, Hurricanes in the Atlantic and Typhoons in the Pacific. Tornados? Twisters, usually found hurling cows and cars around the southern US. Nothing to do with this blog.

What happens?

A low pressure system forms over a warm bit of water, clouds form, then storms. These storms become bigger and combine. Winds in the storm cell begin to grow, the wind caused by the rotation of the earth starts spinning the clouds around (clockwise in the Southern Hemisphere and anti-clockwise in the Northern Hemisphere.

The air then behaves like water down a plug hole and the storm (low pressure system) draws ever increasingly powerful winds spinning in at right angles (cariolus effect, I think) to the centre of the system. It also draws more water vapour into the system. Soon you have this massive lump of spinning storm that wanders around the sea being guided by the air moved by the spinning earth, nudged by high pressure ridges, and chipped away by wind shear, until it hits land. The cyclone then runs out of water vapour to suck into the system, and starts losing power, until it fades away. Or it gets pushed into cooler seas and collapses by itself.

If you want to track a cyclone

If you want to track a cyclone and don't have the internet to do this, all you need is a barometer and your left arm. For the smart asses out there who are sniggering at the absence of logic in the previous sentence, let me just inform you that when a cyclone gets close, the lights go out. Internet will be patchy at best, and subject to battery life or generators. You will also have no radio, or TV. A barometer and a left arm can then be quite appreciated. Read on...

As the barometer falls to around 1000 Mb (millibars) and then below, the wind will grow. Clouds and rain will probably be significant weather features at this time.

When the winds are gusting at a fair rate, turn your face into the wind (so that it blows your hair back), and point out your left arm sideways (away from your left ear- but don't look at your finger or you will end up pointing behind you!). Your finger will be aiming at the cylcone. As the storm tracks around you, the wind direction will change, the pressure will drop and you will be able to work out the rough direction of the cyclone. Take care not to get hit by a flying branch or piece of corrugated iron. Winds of 270 k's per hour have been recorded. A solid object flying at that speed is likely to go straight through you.

If the wind suddenly stops and everything is calm, you are in the eye. Don't go fishing. In a short period of time the storm will return with a vengeance. When you notice the barometer going back up, you will know the storm has passed and the weather will be improving.

Here are the storm tracks for last season (2008/2009) compliments of Meteo France - Reunion

Visit them on: http://www.meteo.fr/temps/domtom/La_Reunion/#

You will notice that there are ten tracks above, because there were ten 'named' storms. Also notice how lucky we were in Mauritius.

Once a storm is named, it becomes official and then applies to the small print of your insurance policies. Earlier in this blog, I referred to numbered storms. These don't get included. Cyclones all start their life as numbered storms and then as they get big and strong enough, they get names in alphabetical order as the year progresses.

Our list of names for this year is:

Anja, Bongani, Cleo, David, Edzani, Fami, Gelane, Hubert, Imani, Joel, Kanja, Lunda, Mohono, Nigel, Olympe, Pamela, Quentin, Rahim, Savana, Themba, Uyapo, Viviane, Walter, Xangy, Yemurai, Zanele.

The countries in the region all have a chance to propose names for cyclones, so if you ever want to have one named after you, become friends with someone who works in the met office of any country in our region (South Western Indian Ocean).

The met office predicts ten named storms for this season. This is an average and is not news.

Mauritius is due a big cyclone.

We haven't had a serious one since 1994 (Hollanda) and it seems that a major cyclone hits Mauritius every ten to fifteen years. Oh Oh. 2010-1994=16 years.

But being the eternal optimist, and armed with my own theory of how global warming has affected cyclonic behaviour, I will predict that we will have a number of bad weather days with clouds and lots of rain but no damage, as cyclones form over us, to move on and descend on poor Madagascar, as well as the east coast of Africa from Durban to Beira.

What is my theory?

Cyclones are like Goldilocks, and like forming in water that is not too hot, and not too cold.

This perfect temperature has been moving slowly southwards as global warming heats the oceans. The optimum place for formation of cyclones has moved from somewhere near Diego Garcia (1000 odd kilometres north north east of us) in a south westerly direction towards us. More and more cyclones are being formed further and further south west. This bodes well for us as we may miss more and more. Bad news for the dudes in Madagascar and South Eastern Africa. The counter argument is that as the sea warms we will simply get more cyclones. I don't like this argument, it makes me uncomfortable!

What facts do I have to support this theory?

OK, the facts I have are unlikely to put me on any Nobel Prize Winner's list, but here they are:

Using Meteo France's past cyclone maps of cyclone tracks (see image above) I looked at all their maps, from the season starting in 2003, to the one that ended this year. That's only five maps. I then counted all the named cyclones that made it to the Mozambique Channel each season. Here are my results:

2003 3/10 (season starting 2003, 3 named cyclones out of 10)

2004 2/10

2005 1/6

2006 5 / 15

2007 4/14

2008 3/10

Not conclusive, but certainly not getting any less.

I then looked at the number of cyclones each year that formed below -10 degrees south (roughly where Diego-Garcia Island is).

Here are my results:

2003 5/10 (season starting 2003, named cyclones formed south of -10 degrees south)

2004 1/10

2005 3/6

2006 9/15

2007 9/15

2008 7/10 This shows that a growing percentage of cyclones are forming further south.

Now any weather man will tell you that you can't detect a weather trend over such a short period of time. So let's keep watching, and see if I am wrong.

For the latest cyclone bulletin, sat photo or storm tracks for this season, go to frontfin.com and click on weather links.

Are the Permanent Residence Rules on their way?

2009-10-12T09:33:00.000+04:00

The Captain was has heard that the Board of Investment says that any investor who sets up a business that generates a turnover of over USD500 000 per annum will get permanent residence for 10 years.

This is nothing new. On the frontfin.com website, we have been saying something similar for a number of years. The only change is that it is US denominated and not Rs15 million (roughly equivalent to half a million USD).

What is new is that they are waiting for the start of Mauritian parliament next week to get this going.

What is also new is an indication of what happens after the 10 years 'permanent residence'. Here they say that the permit will lapse after ten years, after which the holder may stay in Mauritius indefinitely and seek citizenship. Nice!

What is disconcerting is that this may only apply to those with occupation permits based on turnover. What about the other categories of Occupation Permit, namely the Self Employed and the Professionals.

And what about the retirees?

Watch this space.

Can Mauritius ever be like Singapore?

2009-09-13T14:00:00.000+04:00

My previous post showed Singapore once again top of the global log in ‘Ease of Doing Business’. While Mauritius did really well at 14^th place, how do we get better?

The obvious answer is to use Singapore as a role model.

I have been to Singapore a number of times, the first when I was five years old, looking for a school. The country was then part of Malaya. Every country in the region was trying to kick out their colonisers (the English) and my family were leaving Sarawak (also part of Malaya) due to political insecurity.

For the geographically challenged, Singapore is a pimple below the Malaysian Subcontinent. It is separated from mainland Malaysia by the Johore Strait, so it's a sort of island. Mauritius is a pimple three times the size of Singapore in the middle of the Indian Ocean, so it is definitely an island.

Both Singapore and Mauritius are challenged when it comes to natural resources. Singapore has none, while Mauritius has a sugar crop and tourist beaches. The sugar crop is at its maximum productive capacity, and there are only so many beaches, So long term, if Mauritius is to grow, it has to use something other than its natural resources.

Singapore was always been a trading post. It has an edge on Mauritius when it comes to being a commercial hub due to its proximity to Malaysia, Indonesia, Thailand, India as well as Korea and China. And a quick look at Changi’s magnificent airport or the sprawling harbour makes one realise that it would be folly to try to copy those, except in a small way.

We have a Freeport, and Mauritius took a very hard look at Singapore’s legislation when it set this up in 1993. The positive effect the Freeport has had on Mauritius is that it improved our light industrial infrastructure and makes it easy for new small added value operations to benefit from the enabling business environment and our fist-full of export friendly treaties. We are very far from being an attractive air transit location, and I don’t believe we should try to copy Singapore here. There is just too much sea to cross.

So what is left?

Shopping:

Singapore is famous for its shopping, and Mauritius set itself a target of becoming a duty free island, a shopper’s paradise, some years back. Import duties have come down, and shopping centres have gone up. So we are getting there. We don’t have much of a domestic consumer base compared to Singapore. They have 4,84 million people (compared to Mauritius with 1,3m) with an annual per person spending power of $47 940 (10^th in the World) compared to Mauritius at $12 480 (85^th). Simply put, that is four times as many people with four times as much money.

So our target should be to have a shopping paradise about one sixteenth the size of that on Orchard Road. Not so far to go.

Banking:

The financial services sector of Singapore has been the envy of many countries, big and small. They have had enabling legislation and their sector has thrived. Expatriates once dominated this sector and to an extent are still prevalent, but the quality of home grown banker or stock broker is now world class.

Singapore is very business friendly when it comes to banking. I am afraid Mauritius has a long way to go here, with some of the most demanding due diligence requirements in the world that stifle efficiency and destroy transactions.

This is a Must Fix.

This leads me to the next area where we can do better:

Bureaucracy

Singaporean government officials are some of the most highly qualified, and well paid in the world. They fight for their jobs and are measured on performance. Unfortunately, in Mauritius, too many jobs go to friends or are given out as political favours.

There are many very competent hard working individuals in government and it is always a pleasure dealing with them, but behind these hard working few, are the many who could do more.

Ok, so where is Mauritius better?

Unless you like living in an apartment in a city, with the air conditioner running 24/7, Mauritius is a nicer place to live. There is more space, nicer beaches, less city. It is warm but not unbearably so. As a tourist destination or place to retire, we have got Singapore licked.

I think there are more business opportunities in Mauritius because we have further to go in terms of development. Our population is well educated but not as crazily stressed about education as Singapore, where schools operate two shifts per day. Where children never get a chance to play. (I should write a song!)

India and China

Our biggest hope for growth and development comes from India and China.

After India and Nepal, Mauritius has the highest percentage of Hindu population (around 50%). Mauritius is in many ways a home from home for Indians wishing to do business here. This plus the fact that Mauritius is the biggest foreign direct investor into India (44% as of June 2009) gives India a very important role in the future of Mauritius. Singapore is the second biggest investor into India at 9%. Just this statistic on its own gives a hint at how Mauritius can develop, and also shows how important the double taxation avoidance treaty between India and Mauritius is - for both countries.

And then we come to a huge pot of gold at the end of the Mauritian rainbow: China.

President Hu Jintao visited Mauritius in February this year. He is a busy guy, so to come to a country with a population equivalent to 0.1% of his country says something. Here is the difference: Mauritius 1,3m - China 1 338,6m

It also shows that all we need is a tiny piece of the Chinese action to make a huge difference to Mauritius.

Mauritius has apportioned a zone to the north of Port Louis for Chinese development, and I watch the development there grow each day on my way to the office. The natural resources of Africa, and to a lesser extent, Madagascar, are obviously the ultimate objective of the Chinese, and with Mauritius the leader in political and business friendliness in the region, including Africa, I can see our role evolving as a result of these forces. I suspect we will see a push into our services sector coming from Hong Kong and Singapore. It may already be happening for all I know.

Most Important things for Mauritius to do:

Improve Telecoms especially internet
Improve road infrastructure
Reduce financial sector over-regulation

That’s not such a big job.

We are working on our roads – after a long rest.

Fibre optical cables are being laid all the time. Technicians are getting better (I hope and trust).

Financial regulation must change - away from appeasing high tax countries and towards greater business orientation. Less repetitive due dilligence, information sharing and wasteful reporting and more transactional efficiency.

Or the heart will stop beating.

Ease of Doing Business: Mauritius 14th in the World

2009-09-10T11:19:00.000+04:00

I am so proud.

I noticed a buzz of activity yesterday in our neighbour's offices. TV cameras, rows of coffee cups, smartly dressed execs. I wondered what was going on. Our neighbour is the World Bank and they were releasing the results of their latest annual Doing Business Survey.

A total of 183 countries were surveyed. Did we do well? DID WE DO WELL???

Let me show you how well we did!

Ease of Doing Business - 14th (in the world)
Starting a Business - 10th (10th!!!) (In the world)
Trading Across Borders - 19th

For our South African readers, here's how you did:

Ease of Doing Business - 34th
Starting a Business - 67th
Trading Across Borders - 148th Wow...how about that? Time you opened an office in Mauritius, non?

Those better than Mauritius at Ease of Doing Business (the summary statistic) are, in ascending order:

Finland (16), Japan (15), Iceland (14) - this is the only 'small country' better than Mauritius, by the way - Saudi Arabia (13) but try buying a beer there, Thailand (12), Georgia (11), Norway (10), Australia (9), Canada (8), Ireland (7), Denmark (6), UK (5), US (4), Hong Kong (3), New Zealand (2)...and the winner is Singapore (1).

Out of interest I went to Wikipedia and pulled the maximum tax rates for Corporate and Individual Taxes for this same illustrious group and the countries.

Guess what?

Lowest maximum corporate tax rates go to:

Singapore (17%), Hong Kong (16.5%), Georgia (15%), Mauritius (15%), Ireland (12.5%)

Lowest maximum personal tax rates go to:

Hong Kong (15%), Mauritius (15%) and Singapore, Georgia and Saudi Arabia at 20%.

No country taxes less than Mauritius if you add both the corporate and individual maximums.

Why have I used maximum rates? The simple answer is that most countries have differential tax rates and it is not easy to compare one to another any other way. It is possible to be taxed less than 15% in Mauritius, for example, but that requires some planning. The same applies to every country in the world to some extent.

Oh and by the way, South Africa's maximum tax rate for Corporates is 28% and for Individuals, it is 40%.

If you would like to have a look at the World Bank 'Doing Business 2010 Report'
go to

http://www.doingbusiness.org/economyrankings/

I am so proud!

Tamarina and Villas Valriche

2009-09-09T11:24:00.000+04:00

Our annual three day golf tournament against eight South Africans ended on Sunday.

This year it was held at Tamarina and Golf du Chateau (Villas Valriche) Golf courses, with us staying in two Tamarina Villas kindly donated for this purpose by the owners.

Apart from being a great week and a good result for the Mauritian Cane Rats against the South African Warthogs, it was also a chance to take stock of two IRS developments...Tamarina Golf, Spa and Beach Resort and Villas Valriche.

Tamarina:

Tamarina is an Integrated Resort Scheme that is set on the West Coast of Mauritius near the towns of Tamarin and Black River. The Villas are very comfortable. We stayed in a four bedroom unit overlooking a ravine with the Black River Gorge in the distance. Tamarin Trees and a Mirador (old wooden hunting tower) framed our view, over the sparkling rim flow pool.

We would watch the clouds dump their rain in the gorge and then wait for it to hit us. But it usually petered out. Tamarina has a very low rainfall and is protected from the wind, and the golf course looks like your typical bush veld course in South Africa.

The greens were true and the fairways manicured and well maintained and a lot of fun to play.

Club House staff were attentive, efficient, and friendly. They went to a lot of trouble to make our round and our stay as pleasant as possible. Thanks to O'Brian Barber for welcoming us and organising things.

One evening we went down to the Beach Club, where you can sit perched over the beach on your lounger or in the pool and enjoy the waves breaking below. We had a lot of fun kicking a rugby ball on the beach or simply standing in the sea, sipping a beer and enjoying the evening.

My only niggles were that the hot water took a long time to get to the showers, even though the hot water circulation system was switched on, and that it is a long drive around for cars to the Beach Club. Golf Carts have their own more direct route.

Villas Valriche

Villas Valriche is perched over the Peter Matkovitch designed course of Golf Du Chateau, on the South Coast. We have played the course many times and love it. The greens are perfect and the fairways manicured. The prevailing South Easterly can make the course challenging and anyone with a par on 17 should be happy if not surprised.

Villas Valriche IRS units are currently under construction.

The Villas are arranged around the high ground behind the golf course with stunning sea views. The south coast is indisputably the prettiest part of Mauritius and there are miles and miles of public beaches with closely mown grass running down to the coral sands. Two five start resorts offer privelaged access to owners allowing for the enjoyment of the best of both worlds, self-catering independence, with five star pampering if desired.

The golf team under golf director Steven Shearer is friendly, professional and attentive. Their eye for detail is a pleasure. The resident golf pro, Garrick Barnard, is an inspiration and has a wonderful effect on my game while he is watching. It is a pity I seem to forget everything the next time I play. The practice facilities are fantastic.

There is one completed Villa overlooking the Tee Box on the Second Hole, and the design is not that different from the Tamarina Look. Shingled roofs with Bali Accents. Nice big windows to take in the views

I am told that a beach house will be available to owners but personally, I would like to explore all the coves and beaches nearby. I am sure I could find one just for me. I also like the fact that I can use two hotels, their pools, restaurants, spas and beaches, if I feel like it.

Surfers (Wind, Kite and Board) will be happy to be based at either location. It is less than half an hour from both Villas Valriche and Tamarina to Le Morne. This is the principal kite and wind surfing spot in Mauritius and attracts serious participants from around the world. Board surfers are looked after at nearby One - Eye, where a wave is present most of the time. Tamarin Bay is also surfable with a southerly or westerly wind. There is another beach near Valriche that attracts surfers but the name escapes me. I do know that it has a sign that says Swimmers Will Be Drowned if they use this beach.

Which do I prefer? I can't say.

Valriche is not finished yet, and with prices ranging from $1.2m upwards, they look like a good deal. High points for me at Valriche are the awsome views, established Championship golf course plus a good quality Mashie Course, shared by two excellent hotels. And I love the beautiful coastline.

Tamarina is finished and resales are upwards of $1.6m to $2.5m. It is very close to supermarkets, shops, some restuarants and Big Willy's - the local hang out. No sea views unfortunately, but access to a brilliant beach and I love the Beach House.

Mauritius Cuisine (Sept 1993)

2009-08-05T23:38:00.000+04:00

The following is an excerpt from a newsletter sent to friends and family in September 1993 and forms part of our 16th Year in Mauritius Anniversary Celebration. As usual, there has been a greater emphasis on a light hearted reflection of our life in Mauritius than an accurate portrayal of the culinary truth.

-----------------------------------------

La Cuisine Bongo

J and I have adapted very well to island style food. This can be grouped into three categories: Chinese, Indian and Creole. It is everything we like.

What follows are uncensored excerpts from J's cook book collection. It is important to note that these cook books have all been translated from another language. This strikes the novice cook when she turns to the first chapter titled “Alimentary Products.”

---------------------------

Quotations from cookbooks follow...exactly as written (except for comments within parenthesis).

The Monkey Curry (read this with any accent you think appropriate)

Nothing is better than our like, and as we are supposed to have monkey ancestors it follows that the meat we should appreciate mostly should be monkey's. It is much better to use the monkey that has been killed at hunting (rather than the one that died in the monkey breeding scheme - see 10 May 2008 posting - Monkey Business). Tie and hang animal by the legs, cut the skin round neck and wrists and pull off fur. Take out bowels and wash thoroughly. (Wash the cook, the monkey or the bowels?). Take out all the bones with a very sharp knife then cut the meat into slices of 2 cm cube. (?).

I skip over the details of Fritters of Venison Brain, and turn to Stew of Flying Fox Bat:

Take six fox bats (tough critters to catch, or find at the deli), discard wings, skin and heads. Remove interior organs and guts (not much left after all this, a bit like eating a guava after you have peeled it and removed the pips). Wash well and cut into pieces.

Galantine of Wild Boar

(ANC can adapt this to Galantine of Wild Boer). Take one wild boar head. The boar's head must be shaved first (watch out ET). Then delicately detach the skin and reserve. Debone the head, wash meat, brains, tongue, etc. (don't think too much about the etc). Mince it all up with pork fat and stuff it back into the skin. Sew it up, boil for four hours, cool, drain and emigrate (I think that should have been refrigerate).

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Commentary:

One of the most important things about tuning into our new culture was developing an interest and taste in the cuisine of the community.

What is Mauritian cuisine? This question is nearly as hard as answering the similar question 'What is South African cuisine?”.

The obvious point is that both cuisines are combinations of a number of cultures. In Mauritius the dominant influences on our cuisine are Indian, Chinese, a bit of French, and, until recently, a shortage of protein and an absence of refrigeration. The weird recipes above are mostly from very old cookbooks. Although I must confess I had Fried Wasp Grub with Bombay Onions just the other day!

Truly!

South African Bashing

2009-08-05T14:16:00.001+04:00

The following article was translated by me from l'express of 5 August 2009.

Foreigners in Mauritius
Raju Jaddoo stands against South African Bashing

A board of inquiry on the illegal real estate purchases by foreigners met yesterday. The Director of BOI, Raju Jaddoo believes that South Africans should not be targeted.

"We must stop this obsession, this systematic attack against South Africans! It's South African bashing! It's cowardly!" said Raju Jaddoo, Managing Director of the Board of Investment (BOI). L'express was contacted at the first meeting of a High-Powered Committee, to investigate the illegal purchase of real estate by foreigners.

Reliable sources have said that Raju Jaddoo did not express the depths of his thinking at the meeting yesterday. In addition to Raju Jaddoo, this committee consists of the President of the Commission for the democratization of the economy, Cader Sayed Hossen, a representative of the Office of the Prime Minister, a representative of the prosecutor, a representative of the Financial Services Commission (FSC) and representatives of Ministry of Land and Finance.

According to our information, a decision was taken a few days ago to expand the mandate of this committee to also examine the social impact of immigration of all aliens. They are seen to be creating enclaves in the country, specifically on the coast north, south and west of the island.

"Mauritius has to be an open country"

However, these people live in Mauritius through the open-door policy advocated by the same government. Does it now seem that the easy entry of foreigners to Mauritius to live and work is having an undesirable effect? The establishment of this committee is a little discomforting for the Board of Investment (BOI) as the role of this department is to attract and encourage foreign investment. And the Director General of the BOI has not sought to hide his feelings yesterday.

South Africans, he says, are not "the majority" amongst the foreigners living in Mauritius.

But he refuses to give us the official figures of the number of foreigners living in Mauritius since the decision to open up the country, referring to the Passport and Immigration Office. He adds that "Mauritius is an open country. How many Mauritians live abroad?" If very little has transpired in this first meeting, it is nevertheless clear that another factor, in addition to possible tax and legal sanctions against the promoters, was the social aspect of this "political opening" . Does this mean that the policy will be reviewed? Hard to say. But this confusion may affect the work of the BOI. Foreigners can buy property only under the Integrated Resorts Scheme (IRS) and Real Estate Scheme (RES).

They may however live in Mauritius on three conditions: if they buy IRS or RES villas, if they invest some money into a company, or if they find a job which gives them a salary of over Rs 30 000.

The latter criterion is problematic. The threshold wage - Rs 30 000 - is so low that job offers that are given to foreigners are relatively easy to obtain.

And since there is no restriction on the sectors in which foreigners can work, they often encroach onto the turf of Mauritians. They are also creating enclaves and do not want to mingle with Mauritians.

What does the Government expect to do after it has blithely opened its doors? Stay tuned.

Original written in French by Deepa BHOOKHUN.

------------------------------------------

Commentary:

My earlier article about 'Too Many South Africans in Mauritius?' was a reflection of these points of view that I had heard around Port Louis and other places. There have been other articles that I have chosen not to publish, as they are better left unread.

What should South Africans living in Mauritius do about this campaign? Learn French would be a good start! At least you can then read what they say about you.

My best advice would be to keep your head down, and be nice.

Francophone Conference ( October 1993)

2009-08-04T23:44:00.000+04:00

The following is a slightly edited extract of a newsletter posted to friends and family in October 1993. It is meant to be light hearted and is a fairly distorted reflection of the truth:

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The Phoney Franco Conference

Last month, all the countries in the world that used to be French colonies, plus a few with French connections (like Canada) and a few with French menus like Cambodia, who have 10 000 francophones out of a population of 7 million, had their annual summit in Grand Baie.

In preparation for this, Mauritius has been in a frenzy for two months, breaking many productivity records and proving that it can get itself into gear when motivated adequately - The Government introduced the death sentence for shirking.

On the final day, one of the brand new Honda police motorbikes with flashing lights and sirens was parked on the side of the road as the policeman helped push the Niger delegation to the airport, along a newly surfaced road with clean white lines and cut, litter-free grass growing on the edges. Hedges had been trimmed and flags and bunting flapped in the breeze. It was an impressive sight. I hope they caught the plane.

The Francophone conference was attended by a strange mix of 45 countries, with the Vietnamese and Monaco governments chatting away, not far from the the Central African Bloc, who were eating their lunch. There was Canada hobnobbing with Haiti, while her gunships moved into position at 0400 GMT the next morning to blockade the little island.

I went to the Port Louis market when the conference was a news item to have a drink and a bite. The drink was a mix of milk and sago 'moose' with raspeberry flavour - very sweet and refreshing, and the bite was the staple take-away, Dahl Puri. Flat yellow plate shaped dough into which strange vegetarian things with optional chilli were slopped. This is rolled up and then wrapped in newspaper and carried off to the office. The total cost of my lunch was R2.00.

While weaving my way out of the market, I saw three big blue BMW's, each guarded by a policeman. No one was inside. Each car had a yellow sticker identifying it as part of the Haiti delegation.

They were out desperately shopping for stuff in Mauritius that they would no doubt be running out of as a result of the imminent blockade. That's what I thought, anyway. Then I saw them coming out of the bottle store with armloads of RHUM, a powerful fluid costing about R6.00 a bottle and used for starting fires. The mad and suicidal drink it with Coke. The blockade is only a petroleum and arms blockade, so that explains why the Haitians are so desperate for fuel. A bottle of Rhum mixed with six litres of sea water can power an aircraft carrier for three months. Alternatively, dropped from a helicopter, it can defoliate, depopulate and dehumidify an area six times the Kruger National Park. Not to mention the babalaas the survivors will have.

Mauritian Rhum. Too good to spell properly. Can be guaranteed to turn your Christmas Party into a New Years' Ball.

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Commentary:

I am now addicted to Dhal Puris and know exactly where the best ones are sold. On return from an away trip, the first thing I do when I get to the office, is order two or three 'pairs'.

One Month Later (September 1993)

2009-08-04T23:03:00.000+04:00

This is an extract of a newsletter dated September 1993, sent to friends as family, one month after arriving in Mauritius. This is a light-hearted and not completely accurate reflection of our experiences. The truth has been sacrificed at the altar of narrative license.

--------------------------

One Month Later

Normality is slowly seeping into this happy little home. French lessons twice a week. Taxi driver almost a family friend. Girls catching the bus to school each morning. Learning to drink cheaply and in moderation (well sort of). A small but growing circle of friends. A television set.

Our worldly possessions are still stuck in a container. Someone told me a work permit was a formality. A 'formality' to a bureaucrat is as vague a concept as 'a negotiated settlement' is to a South African. After having to poo in a bottle, pee in a pipette, cheat my way through an aids test and pull a face in an x-ray, I finally got my medical. It's always a bit dodgy seeing a doctor who has just had a curry lunch and calls himself Dr Beena Vasectomy.

The Community of the Connected

I was warned about the pace of this place. Everything happens in due course. It started really getting to me. I would lie awake at night composing letters to the Chairman of Hewlett Packard telling him his Mauritius operation sucked. This was when no one would fix my printer and we had a major job to do.

But then I spoke to a local acquintance. There is a Community of the Connected that operates on a faster time dimension than New Yorkers. Technicians arrive in 30 minutes instead of 3 weeks. The key to this community is simple. You must know the right people and they must see the benefit of knowing you. Suddenly things happen in a flash.

Not all things, mind you. When the bus in front of me has stopped and the truck on my right is off-loading Phoenix beer and I am late for a meeting, I have to stop myself from screaming 'Darn this rotten hole!', and smile at the wierdness of the concept of a traffic jam on a tropical island.

I must also take note of the Phoenix stocked shop so I can buy a cold one on my way home (to calm my nerves, Mom).

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Commentary:

Before I got a car, my transport to work each day was by taxi through Triolet. The road we all use from Grand Baie to Pamplemouses had not yet been built. My taxi driver, a great Tamil guy called Naden, who I still see around, would wait for me the whole day, parked at the sheds that are now Caudan Waterfront, before driving me home. I would often command him to stop so that I could buy a beer for the ride home. I wonder why I stopped doing that?

First Impressions (August 1993)

2009-08-04T13:31:00.000+04:00

When we arrived in August 1993, I tried to keep in touch with my friends and family that were in South Africa, Australia, Ireland and the UK. In those days this involved printing something on a piece of paper, folding it, sticking it in an envelope and posting it. Haven't done that in a while.

So in celebration of our 16th Anniversary in Mauritius, here are exerpts from the first newsletter we ever sent:

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Changing Places

A week has passed since we arrived in the night followed by a second taxi with our luggage. Twenty pieces of baggage nearly gave the Air Mauritius dolly bird heart failure. We needed to sweet talk our way around a R900 excess baggage bill.

But at last we have made it. Weeks of farewells, stress, bill paying, do-lists and hangovers have come to an end. We found our house with all its lights on and could hear the shush of waves lapping around the rocks on the shore. A neighbour welcomed us with a cold Phoenix soon after we had said goodbye to our transport.

Oh What a Beautiful Morning!

The next morning, while J was snoring away, I woke the girls and told them to come and look. Our front door faced out onto turquoise waters, bobbing piroques, and a little island. It was almost too perfect. Fifteen paces of lawn took us to a beach where the girls immediately started building sand castles. They have spent most of their time on this beach since we got here.

A Not So Shabby Little Hut

Our house has a large family cum dining room fronted by a long veranda for sitting under and watching the spectacular sunsets. Our kitchen is on the large side, and we have three bedrooms. Two are very big and accomodate us all very comfortably. The spare bedroom awaits anyone who would like to use it. We have three loos, two showers, a bath and a bidet. The house is very airy and is shaded by big trees. It is very close to the centre of Grand Baie.

Heigh Ho Heigh Ho, it's Off to Work we Go...

I have set up offices in Port Louis and am busy establishing a company and generating ideas. Happiness will be when I generate profits.

August 1993.

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Commentary:

Looking back on our arrival in Mauritius, one of the best moments of my whole life was showing the kids the beach that first moring.

Those little girls building sand castles are now 22 and 20 years old.

My naive expectation of profit generation would take another nine months to gestate and involve a very stressful pregnancy.

I will publish selected bits over the next few days / months / years.

Too many South Africans in Mauritius?

2009-07-22T11:56:00.000+04:00

I settled in Mautitius 16 years ago, after living a long time in South Africa. I consider myself Mauritian and am exceptionally proud of my country. You need to know this to understand what follows:

Mauritius had perfect timing when they made it easy for foreigners to get three year occupation permits to live and work in Mauritius, just as Eskom, the South African electricity utility, showed a glimpse into a future South Africa where infrastructure is placed in jeopardy.

Many South Africans who until then had been optimistic about their country's ability to govern itself competently in the long term abruptly changed their views, and started looking for other countries to at least hedge their bets.

Mauritius soon had a flood of 'holidaymakers' who not only descended onto the warm coral sands of our famous beaches, but who were also searching for opportunities to secure their financial future. Our offices were over-run with everyone from the Urgent Emmigrant to the Careful Investigator.

The flood is still a steady stream. If SA house prices recover, the flood will return, I suspect.

Many South Africans settled in Black River / Tamarin in the West and Grand Bay in the North. Schools were quickly filled. Good rental properties became scarce and very expensive. Their accents and influences are easy to spot in these SA enclaves. Or SA Ghettos as they are referred to by some.

There has also been a surge in Self Catering accommodation all over the country, with the result that South Africans looking for a better deal and holiday experience than the traditional resort hotel offering, are now cruising the supermarkets, bars and restaurants that used to be the domain of the local Mauritian and hardy French tourist.

The effect is that one hears and sees South Africans everywhere. The local Mauritian has that overrun feeling. It doesn't help that South Africans are very often loud, brash and culturally dof when it comes to Mauritius.

So my Mauritian friends politely ask me how many South Africans are coming into the country. The subtext to this question is 'There are too many South Africans in Mauritius'. The Mauritian rumour mill had the number up to 200 000 at one stage. The population of Mauritius is 1,2m so that number would create a huge demographic shift. Mercifully, the number seems to be much lower.

DSTV told me they had about 2000 subscribers in Mauritius, so if we allocate 300 of these to hotels, and if we work on the assumption that all SA families need DSTV, we could say that there are probably about 1700 South African family units in Mauritius, which I would guess means there is a possible SA population of 5000 (max).

There are some massive assuptions in this calculation and they are challenged by the number of available places in the private English medium schools, which I would guess were about 200 at the most before the flood gates opened.

I am more comfortable with a number of resident South Africans set at about 3000 which is about triple the pre-flood number.

Is this too many?

Ask any Mauritian and he will say there are too many South Africans in Mauritius. Ask any South African in Mauritius and he will ask 'What's the problem?'

The problem, in my personal view, is complex and mostly emotional.

I can totally understand the Mauritian who stands in his empty restaurant looking at the packed one run by a South African across the road.

I can totally understand the Mauritian lawyer who sees new South African lawyers eating away at all the juicy corporate clients.

I can totally understand the Mauritian Estate Agent watching as the South African competitors engulf the market.

These and other South African success stories show the positive side of South African competition, raising the stakes, improving the service, doing stuff that wasn't done in Mauritius.

Unless you are the loser in this competition.

Then there is the discordant (to our delicate Mauritian ears) South African accent, moaning about Mauritius, its prices, its traffic, its shop assistants, barmen, taxi drivers, ugly dogs, humidity, the fact that nothing is priced in Rands, the 'no problem' attitude, the good enough is perfect standard, the blou draad and putty maintenance, that what are paw paws in SA, the Mauritians call coconuts (truly), the price of SA plonk wine, all the funny French cheeses, the bread that goes stale in minutes, the warm beers in bars, the kak fresh produce (I agree), the anti ice culture, and so on.

You get the picture?

I don't hear much winging about the Mauritian crime rate, or the presence of electricity, or running water. That you can get a phone line in a couple of weeks, your occupation permit in 5 days, your id card in 3 hours, that medical costs are much lower and that the government is a coalition democracy, more healthy than anything else in Africa. Or that the Mauritian employee is well educated, keen to learn and is more productive than many South Africans I have encountered. That HIV Aids is not a major epidemic threating our teenage children. That Drugs, while a problem, is fairly well contained.

The perception that South Africans are pushing up the prices of beach-front housing is strong, and based on absolutely no logic. Unless the higher selling prices are a direct result of higher rentals.

Closer to the truth is that Mauritius has massively changed the government rental rates on beach-front property. This has created a situation where only the super-rich can afford the lease and its transfer costs. The super-rich, as we Mauritians know, will pay anything for something they really want!

The real problem is that it is now very easy to blame all bad things on South Africans. This helps us to give order to our Mauritian world. Politicians find it extremly convenient to blame these new settlers in Mauritius on a mulitude of ills and their electorate is only too pleased to agree.

The intellectual half of my brain acknowledges that South Africans have brought a lot of money, skills and ideas to Mauritius. The emotional half of my brain wants to kick some of them out, particularly the slow adjusters.

But definitely not the ones renting my property, or paying me fees!

I confess, I am a bit confused.

How to be a Good Guest

2009-03-23T13:45:00.006+05:00

Foreigners have shown massive interest in moving to Mauritius over the last two years. The advent of the Integrated Resort Scheme, and the introduction of the user-friendly Occupation Permit put Mauritius on the Movers' Map.

We now have a crop of Recently Settled Expatriates (RSE's) many of whom have found settling in Mauritius to be quite taxing! Maybe they should have read my blogs because much of the whining and complaining includes getting kids into private schools, housing issues, and bureaucratic frustrations.

When we moved here in 1993, it was also not easy adjusting to all the different things that make Mauritius unique. If we had been able to speak better French or Creole, things may have been easier, but we enjoyed the difference and each time I solved a problem I realised that my future competitors (who as yet had not arrived in Mauritius) would have to jump that hurdle too.

When we moved here, we understood that Mauritius is a different country to the South Africa we had left behind. We embraced the new and strange. We marvelled at how easy it was for those with connections to get things done. The Community of the Connected was what my wife called it.

Now we have the connections. For example, I needed to clear the bush from a property we have near Grand Bay. If I was an RSE I would have asked my landlord who would have referred me to his friend who would have quoted a ridiculously large fee for the service (Rs200 000 or USD5800 in this true life example). Instead, I had a chat to a good friend who works for a construction company and got the use of an earthmover for two days for Rs20 000.

This kind of thing can get the RSE into a state of permanent distrust and alienation. To the point that even when the price of something is reasonable, the RSE will automatically assume it is too high and someone is trying to rip him off.

From here on it is a slippery slide to an RSE vs The Rest of Mauritius state of mind. The side effects are easy to see:

Anything that goes wrong is blamed on Mauritius.
Everything that is different is now automatically wrong or inferior.
Hankering for many of the good things left behind in the Other Country become obsessions.
Frustration at having made 'the mistake' of moving to Mauritius.
Limiting of friends to include only RSE's. This one is a bit hard not to do as many who are not RSE's cannot abide their negative attitude and choose to avoid them.

I remember when Mugabe took over Rhodesia and renamed it Zimbabwe (after the ruins that it became). Many Rhodesians moved to South Africa. No sooner had they settled when they would nostalgically mention things like:

'When we were in Rhodesia, the beer was always colder'
'When we were in Rhodesia, the servants were far more enthusiastic'
'When we were in Rhodesia, the meat was cheaper and tastier'.

We called them Whenwe's.

Even if these comments were true, how quickly did they forget their fenced-in farms, the land mines, the personal tragedies, the lack of opportunities for their children.

RSE's behave like in-laws that come and stay with their children. Enjoying the hospitality but feeling free to complain and criticize at will. This can be very testing for the hosts and the HSE's (Happily Settled Expats).

So you want to leave your current country of residence?

Write down your list of reasons for wanting to leave your home country. Then, when you get to Mauritius or any other place you have picked, stick this list on the inside of your toilet door.

This will keep your focus on the big issues and keep your niggles in perspective.

Mixed Message

2009-03-04T09:23:00.003+05:00

March is here already. This post is long overdue. My reasons for the silence are:

Festive Season
Post Festive Season
Ski Holiday
No clear ideas of what to write in this mixed-up world.

The top three excuses are behind me now, but unfortunately I still don’t know what my message must be. My ingredients are listed below. What would you cook up with these?

I hear there are hotels and hotel groups that are experiencing very low occupancies.
I am told about hotels (big nice ones) that are 100% full.
My diving buddy says his income from February is higher than last year even with a week closed due to cyclonic activity.
My hotel management mate says occupancies look like they will be down 25% this year (this is not as much as many fear).
Some self catering properties have halved their prices.
Hotels are under pressure from the Tourism Authority to offer better value (see my previous blog about the rip-off on booze prices).
IRS looks very quiet
Construction costs are coming down
Virgin and Comair have suspended flights
Air Mauritius is putting pilots to pasture
The Chinese Premier promised billions on his visit last week
RES looks as busy as it was.
There are buyers stalking good value properties
There are still South Africans interested in moving to Mauritius
Quality rentals are still rocketing up. Over Rs100 000 (nearly $3 000) per month for a good four bedroom house. This time last year, we were looking at Rs75 000.
The Mauritian rupee is falling against most currencies (not the rand). Last year it was stronger than more than half of the majors.
The Government is looking for ways to make it easier to invest capital (purchase property) in Mauritius.

I am a devout optimist. I look at the above mixed messages and conclude that we will come out of this long dark tunnel stronger and sharper. Many people will suffer hardship and insecurity. We will be less arrogant, and will know what it is like to work harder and longer for less.

Time will tell.

Christmas Cheer and the Price of Beer

2008-12-15T16:02:00.022+05:00

It's December. The Festive Season usually means the hotels in Mauritius are full to bursting. But the global economic crash has hit tourism right between the eyes.

I hear that some hotels are OK this year, with occupancy for December in the 75% region. While that's 25% off target, those hotels will make money. Other hotels are frighteningly empty. And forward bookings into 2009 are sparse for everyone. I would not be surprised if more than one hotel closes down until things get better.

'So what good can come of this?' I ask myself.

The price of drinks in hotels is a source of constant complaint, irritation and anger. Hotels mark up their drinks (including water and soft drinks) by as much as ten times the cost. So, at the Ile Aux Cerfs Golf Club, a beer (Phoenix, in a 340 ml bottle) costs me Eur 5.00. The price in the shop in Grand Bay is Eur 0.50 (Rs2o).

To put this into perspective, when I go on holiday to Switzerland (a famously expensive country), I pay the same price (Eur5.00) for 500ml of Weisbeir on the top of a snow covered mountain. The beer is transported by cable-car and ski doo. The staff earn ten times what the local staff in Mauritius earn. The cost of that beer in the shop in the Swiss valley is Eur2.5, so the mark up is only twice the cost. Not ten times.

My wife had a golf group from the UK staying at a major golfing hotel on the east coast.

They complained constantly about the drinks prices. The wine given as prizes in the daily competition went down extremely well. Wealthy guests hate getting ripped off just as much other guests. The bar prices spoilt the experience for our golfers, and many had negative comments to say on the questionnaires that were passed out afterwards.

Many hotel guests solve the problem by sneaking off to the nearest shop and buying a few six packs and some water, and then ferreting these away into their rooms. But take a tip from an old hand: Check the brands in the mini-bar before you make your purchase. If the cleaning staff spot strange items in the little fridge under the TV, it could be locked for the duration of your stay. Then you will have to sneak out, buy a cool box, find some ice and make your own bar. I have done this before! Game sells good cooler boxes, but it is a long taxi ride from any beachfront hotel.

In fact, one weekend when we went to stay at one of these Euro based rip-off hotels, I filled a huge cooler box with enough drinks for ten of my friends and myself. I then topped it up with ice. It weighed a ton. The porters at the front desk struggled to carry it to my room.

'Weren't you embarrassed to ask them to carry it?' a friend asked me.

'They should be embarrassed to charge those prices.' I replied.

We had a great weekend!

Hotels in Mauritius have had average occupancies of 85% every year. While these occupancies remained high the management could justifiably not give a stuff if anyone felt ripped off.

But the game is different now. If the hotels don't wake up quickly, they will help Mauritius off the tourist map. It is the era of shopping around. Other hotels will offer better deals. And not just hotels. Bars and restaurants have already started lowering their prices. In Grand Bay, The Beach House bar charges just Eur1.50 for a beer (Rs60) and you are sitting on the beach. Spinnakers is about the same. The Thaifoon Restaurant marks its wine up only 2 times, and serves great authentic Thai food.

If choosing to play golf, a beer costs Rs80 at the Belle Ombre Golf course (Golf du Chate

au) and Rs100 at Tamarina Golf Club.

The best golf course in Mauritius without any doubt is the Anahita Golf Course, run by Four Seasons Hotel. Your car is valet parked, you are ushered into a cool well sized change room by friendly professional staff. Your bags are waiting on your cart. Your name and handicap are entered into the huge GPS that even shows mini movies of each hole as you approach the tee box. You are brought little cups of cold water while at the driving range, and chocolate chip cookies, fruit, cold towels and iced tea on the way to the first and the tenth. Tiny smoked salmon sandwiches are delivered to you in the middle of each nine.

The course is an Ernie Els layout, with ample fairways, challenging greens and bunkers. The sea views are stunning, and in December, the gentlest of cooling breezes takes the sting out of the humidity. The course is immaculate, the greens consistent and true. Rock walls and canals thread through fairways, adding to the challenge. I looked with envy at the lucky few who are building villas along the sparkling coastline.

All too soon it was over and we were back in the club house. The showers in the change room are the best in the world sending a cascade of water from a dizzy height, as you look through a glass wall onto a private garden.

We got a special local price of Eur60 per person for the round (Rs2 400 or ZAR750) and it was worth it. Freshly cleaned and happy from the sublime golf experience offered by Anahita, we then head for the bar...

A shandy cost me Rs345.00 (Eur9.20 or ZAR115). Here is the slip:

And before you teetotal golfers get too excited, the standard walk-in rate for a round of golf at Anahita is Eur175.00 (Rs7 000 or ZAR2 187).

As the Greeks once said, 'There's many a slip twixt the cup and the lip."

Why would I buy an IRS Unit?

2008-11-04T11:30:00.003+05:00

The Mauritian property market has a number of unique features, some of them of particular interest to South African investors.

There is not a lot of property available. We are a small island and the most desirable property is along the coast, particularly the north and west coasts from a weather and infrastructure perspective, although there are also very good opportunities on the east and south coasts.

Foreigners can invest only in IRS or RES properties, or qualify after three years to purchase elsewhere as Permanent Residents.

IRS and RES is typically not beach front property as this is government leasehold land and therefore investors cannot take title (a requirement of RES and IRS).

Holders of IRS and RES property have residence for themselves and their immediate family as long as they hold the property. This is mistakenly referred to by some as Permanent Residence, but this is misleading as it does not confer on the holder the right to purchase other property in Mauritius, even after three years.

Tax residents in Mauritius (who live here more than 182 days a year) pay only 15% tax on their domestic remissions, and are not taxed on their worldwide income. South Africans are further protected by the SA Mauritius Double Tax Avoidance Treaty, so if you are a tax resident in the one county, you cannot be one in the other country too.

There is no capital gains or inheritance tax or exchange control.

South Africans typically can invest a maximum of R2m rand per person in foreign property, and even with the current collapse in values, this does not buy much.

South Africans, as part of SADC can invest in a holiday home in Mauritius without limit. This creates an excellent rand hedge for those trapped with a large amount of rands and no way of reducing the currency risk.

Mauritius is 4 hours flight from SA, so not only does this property investment constitute one of the best rand hedges around, it also provides an alternative place to live, and a new or second base for business.

The market is definitely quieter, and marginal buyers from South Africa are finding their new commitments hard to meet. A $1million commitment made a year ago was going to cost R7m. Now it's R10m. This could create some buying opportunities for those hunting for bargains. We know of some, so contact us if you are interested.

All IRS developers have yet to break even and are pouring money into golf courses and infrastructure provided for unsold units, so buyers could have the upper hand.

IRS and RES property is seen as expensive when compared to 'normal' building costs. The comparison is a bit unfair, as finishes are vastley superior plus roads, water, waste water treatment, electrical reticulation, and security installations all have to be paid for, in addition to the buidling itself. And then the developer has to show a profit to justify selling sugar land that has been held for centuries by the family.

So how much does a unit cost? Tamarina was launched two years ago at $650 000 for the cheapest four bedroom house on 3000 m2 of property. A year later, unbuilt homes were selling for over $1m and completed homes are now on the market for $2m.

River Club, launched a year ago at $850 000 for a three bedroom unit on a smaller piece of land were recently selling (still unbuilt) for $1.1m.

Villa Val Riche (was $1m, now $1.5m) is located on the South coast, the most beautiful of all our coasts. They have recently started construction on their homes and offer the best views of any development. Plus you get an established golf course that is maintained not only for the home owners, but also for the two hotels nearby. Residents also get access to a beach house at Le Telfair Hotel, so the best of all worlds is on offer.

The apartments at Anahita launched 18 months ago for about $800 000 are now completed and are selling for about $1.2m. They have just been finished and are available for December rental. Beach bars, swimming pools, golf courses, free waterskiing, kyaking and sailing.

I might try one myself!

Will Mauritius Survive this Financial Tsunami?

2008-09-30T14:21:00.007+04:00

The Mauritius property boom started when the country opened its borders to investors three years ago with the launch of the Integrated Resort Scheme (IRS).

Before this, Mauritius property owners were 'Buy and Hold' investors, with few sales, almost no estate agents, and very little happening in the absence of buyers or sellers, or money.

Now we have an estate agent on every corner, with web sites and sign boards and marketing agents and banks with specialist property services, notaries so overworked they provide no services, and international developers searching for opportunities.

The IRS developments were well timed. International property markets were booming and there was great investment interest from all parts of the world. In the first year and a half, one third of sales went to Europe, one third to South Africa and the last third to the rest of the world, such as Dubai, Russia, or the East.

Then the lights went out in South Africa and the wealthy Rand investor started having doubts about the abilities of the South African leadership to continue to manage the country as a thriving developing economy.

This increased the interest from South Africa in IRS projects. The popping of the Northern Hemisphere property bubble decreased the potential of this buying market. So the ratios have changed, and at the moment the dominant investor is South African. Partly because the Northern Hemispheric buyer has lost some interest, but more so because demand from SA has exploded.

Another contributing factor is that most of those marketing IRS properties have ties to South Africa.

Mauritius has a lot more projects selling now than two years ago: Anahita, Tamarina, Val Riche, River Club, Les Salines, La Balise, Matala are all selling. Tamarina and Anahita have finished homes available for resale. River Club has 80 percent of units confirmed sold with deposits paid. Val Riche is building madly. Les Salines has been taken over by the Beachcomber Group and promises a good product. La Balise Marina is all but sold out - with practically no marketing. Matala Equestrian IRS started sales this week with good interest.

There are those who shake their heads saying that there is too much on offer with no buyers. What these people need to realise is that Mauritius is TINY and the rest of the world is HUGE. The property market on our perfect bit of paradise is so small it qualifies as some of the most exclusive property in the world.

So will it be affected by global collapses in property and banking?

Yes, it will be harder to borrow money to buy a unit. Banks aren't in a lending mood these days. This makes it harder to buy and harder to sell.

Yes, there will be fewer people looking to buy property anywhere, but remember, we are special by virtue of our lack of size, so this may not affect us too much.

And then there is a benefit: We are pretty insulated from global events. Our economy is self serving with little effect on anything else in other economies. The world passes us by.

Why is this a benefit? Our markets are insulated. When the worlds property markets drop ours keeps on rising. Maybe not as fast as before, but still up.

When the Asian Tsunami hit the Indian Ocean on 26 December 2004, destruction and loss of life and property was experienced as far away as Kenya and Mozambique.

In Mauritius we got one very high tide and one very low tide. Zero damage. We are protected by one of the largest ring reefs in the world. This barrier takes the force out of the waves.

I firmly believe that our property market is equally insulated and will weather this financial Tsunami better than anywhere else.

What does Permanent Residence mean in Mauritius?

2008-08-07T12:14:00.008+04:00

I get a lot of emails from people thinking of moving their families to Mauritius, particularly from South Africa. These emails invariably display some confusion. So here is my attempt to clarify things a bit.

Emigration: Migration from your home country in order to settle in another.

What this means is that you move your permanent residence to Mauritius. In South Africa, it has another twist, in that it is the only way that South African Exchange Control lets their captive population take all their assets out of South Africa. Unfortunately it also involves a tax of 10%.

A common myth is that Emigration involves losing your nationality. Not true. Just because you change your place of permanent residence does not mean you have to change your passport. It is entirely possibly to be a permanent resident of a country but be a citizen of another.

The focus of Emigration is that it involves leaving your home country - it does not involve an equal and opposite Immigration in Mauritius. We Mauritians give you a menu of options as to how you can settle on our precious Island.

The Mauritius Menu of Residential Options

Starter

Occupation Permit without the option to convert to Permanent Residence

Main Courses

Occupation Permit with the option to convert to Permanent Residence
Retirement Residential Permit with option to convert to Permanent Residence
Right to Occupation Permit due to ownership of an IRS unit.
Permanent Residence

Desert

Citizenship
Tax residence

have a company with turnover of Rs3 million ($110 000 at time of writing)
be self employed and earn Rs600 000 p. a. ($22 000)

Occupation Permit with the option to convert to Permanent Residence

In order to have the option to convert to Permanent Residence, the holder must achieve the following minimum levels for three consecutive years and then apply:

have a salary of over Rs150 000 per month ($5, 500)
have a company with turnover of at least Rs15m p.a. ($555 000)
be self employed and earn at least Rs3m p.a. ($111 000)

Retirement Residential Permit with option to convert to Permanent Residence

A retiree may acquire a residential permit (that does not permit him to work, obviously because he is retired!) by depositing $40 000 per annum into his personal rupee account in Mauritius. He may then spend this amount as he sees fit. This requirement refers to only one individual in the family.

After three years, the retiree may apply for Permanent Residence.

Right to Occupation Permit due to ownership of an IRS unit

The owner of an IRS (Integrated Resort Scheme) unit may acquire an Occupation Permit that entitles him to live and work in Mauritius. After three years this may not be converted to Permanent Residence - this is a common misunderstanding. If the IRS is owned by a Company, then this company can nominate one individual to be the 'resident' who then gets the occupation permit.

Permanent Residence

What's so great about Permanent Residence? The main benefit of being a Permanent Resident is that you may apply to purchase a home anywhere in Mauritius. This is a much cheaper option than purchasing a home in an IRS, unless you want a house on the beach. In this case, I refer you to my blog on property.

The finer details of permanent residence are still being thrashed out by the government and we eagerly await clarification on a number of issues. Of particular interest is the the question of how long this 'permanence' is. When the dispensation was first described, it set the term for ten years. Some have said that implicit in this ten year threshold, is the ability for the permanent resident to apply of citizenship. Watch this space.

Citizenship

A person may apply for citizenship by Naturalisation if one has lived 'continuously' in Mauritius for 5 years. The law is vague and the application thereof highly discretionary. The Prime Minister administers this and citizenship is a privilege. If someone has been living in Mauritius for over five years (aggregate having subtracted all the times of absence) they may start the application process. It may be declined or it may be successful. I don't know of any magic formula that can guarantee success. Perhaps it will be easier for permanent residents to apply for citizenship in the years ahead. I hope so.

Tax Residence

Tax residency has got nothing to do with any type of permit or citizenship or residence status.

You have to reside in Mauritius for 182 days per year in the first two years, and 91 days each year thereafter to qualify for tax residency. When you have stayed in Mauritius for the first 182 days that year, you may apply to the Mauritius Revenue Authority for a tax residence certificate. Once this is in your possession, it is possible that you may not be taxed in other countries that have tax treaties with Mauritius (including UK and South Africa).

Extinct Scheme for Residence

Please note that the Permanent Residence Scheme whereby an investment of $500 000 in Mauritius gave one permanent residence status is now, like the Dodo, extinct.

For more detailed information on any of the above schemes please go to http://frontfin.com/prs

Mama Afrika just got over her PMT.

2008-07-23T22:21:00.009+04:00

My sporting sojourn to England is behind me. Well done the Proteas. Sorry Retief, but you looked good when I watched you. Ernie...eeish!

I feel very proud of my South African heritage (my ring tone is boeremusiek), while at the same time am very comfortable in my Mauritian skin. To complicate matters further, I am also a British subject. But I love lots of stuff in South Africa, cherish my memories, and marvel at her mood swings.

Mad Bob has decided he can take on a co-star in the final act of his play, "I had a farm in Africa."

Clem Sunter, Master Scenario Artist, says SA is poised for windfall profits when Zimbabwe gets rebuilt, and suddenly, SA is happy again. The rand is strong, Mbeki is cool, Eskom can get away with half of Koeberg broken, and property prices go back up.

I made the last one up but believe that it could come true. Don't forget 2010.

Go to Clem Sunter's great web site, http://www.mindofafox.com. Not only will you get a chance to see how crazy the world is and where it can head, and you can also see what can happen to SA through both an optimist and a pessimist's eyes.

You can also evaluate your own position, and decide on the basis of your analysis if you are in or if you are out.

Or if you can't decide, maybe now is a good time to hedge your bets.

The big problem with PMT is that it comes back!

Is London better than Grand Baie?

2008-07-08T23:14:00.012+04:00

I am in London.

It is the English version of summer. The shops are hot and the streets are cool or wet. The sun is bright, but everyone is carrying a brolly and no one is wearing sunglasses. I am here to watch the cricket at Lords - my brother in law is a member - and then go up north of the Mersey and watch the British Open, or The Open, as the purists call it.

Leaving Mauritius always tears at my heart. But travel does give one a chance to take stock. What do I miss and what makes me happy to be Mauritian?

First of all, London is English. The accents are different but everything is in my language. In Mauritius we get used to only understanding bits of what happens around us. The longer we are there the bigger the bits we understand get, but I honestly don't think anyone in Mauritius really knows, completely, what is happening around them.

We English speakers who don't mix with the locals are the worst offenders. It is fine for the odd SA tourist to call Grand Bay 'Graand Baaaai'. The secret is that in French or Creole, Grand Baie does not rhyme with Braai, it rhymes with Bay. I sound like a smug expert, but truth be told, after 15 years in Mauritius, all I can do is order a cold beer or my steak rare - and pronounce Grand Baie correctly.

It seems that unless you are married to a local, the temptation is to follow the line of least resistance and socialise with those who speak your language. Hell, we tried. Once we were invited to dinner with some new French speaking friends. Two English vs. six French speakers who speak English equals a night starting with polite translations followed by ever increasing conversations to which you are excluded. We were not invited back, much to our relief.

What else do I see in London that I miss in Mauritius?

Public transport. Traveling on the Express train in First Class from Heathrow to Paddington was worth every Great British Pound. Gentle instructions, four seats to myself and an up to date golf magazine were a pleasure. Much better than the white-knuckle ride in a taxi from Sir Seewoosuggur Ramgoolam Airport (branding managers pay attention) to our house in the North.

How I wish we had a railway system that circled the Island with trains every 30 minutes. I am sure the tourists would love it too. And those who lived at Anahita would be able to join the rest of Mauritius.

Flying in to London on Virgin showed me the first Air Mauritian comparative disadvantage:

The thing I HATE most about Air Mauritius, is their insistence on playing the 'Relax and Shop Video' over the loud speakers at the start of every flight, just after the tedious safety video. You are belted in, seat-backs in the Gestapo position, trapped in a metal tube, you have lost all control over your life and bodily functions, and to make matters worse, they try to brain-wash you with some ghastly treacly music sound track with overlaid crap English accent and dead boring content. Please, Air Mauritius, take this off the loud speaker and put it where it belongs...in the optional video section. Hell, I don't even care if you play it first before the other videos, just play it through the head-phone channel and give me the chance not to listen to it for the 254th time.

I am surprised that the executives at Air Mauritius don't get irritated by it too. Maybe it is not played in First Class.

While we are in the comparison zone, some surprising observations:

The traffic is worse in London.
The pavements, while broader, are just as full and impassable.
Crossing the road is as dangerous.
The shops are hotter in London.
People confront you more in London - specifically those irritating neo-homeless who want you to buy their newsless papers.
There are almost no beggars in London or Mauritius (but thousands in South Africa).
Cycling looks cool in London. It seems suicidal in Mauritius.

London has a nightlife. Port Louis is comatose after 5 pm, Grand Baie (remember, Bay not Baai) is meant to be the hot spot of Mauritius. Restaurants are getting better but have a long way to go. We are, in the greater scheme of city nightlife, still the village idiots.

Having said that, Johannesburg is really exciting at night.

Survivors are requested to post their responses.

Mauritius Property - A Beginner's Guide

2008-05-20T11:17:00.004+04:00

The Mauritius property market is exploding. Many people book a holiday to Mauritius lured by attractive advertising that says how easy it is to buy a home of your own.

Sorry, but this is dead wrong.

In the World Bank ranking of ease of registration of property, Mauritius ranks 153rd, slightly ahead of France that ranks 159th. Here lies the clue. Mauritius property law is based on the archaic and convoluted Code Napoleon, France's legal system, and this system is run by Notaries. In Mauritius notarial licenses are passed down from father to son and while the majority are fine professionals, many have very poor service levels.

Therefore, if you are going to dabble in property in Mauritius, be forewarned. Time can be lost with the wrong notary. But more than this, investing in property in Mauritius it is filled with lots of unpleasant surprises.

Unpleasant Surprise Number One:

The Non Citizens Property Ownership Act states quite clearly that a non Citizen can only purchase property (or enter into a lease exceeding 5 years) with approval from the Prime Minister's Office (PMO). What this means in plain English is that if you are not a citizen, you can't own property. Sorry.

The Good News:

This is tempered by a general dispensation from the PMO to allow non Citizens to purchase property within the IRS (Integrated Resort Schemes) and RES (Real Estate Schemes) - subject to IRS and RES regulations.

More Good News:

Permanent Residents (foreigners who have acquired permits and met certain criteria over three years) may apply to the PMO to purchase residential property. While the details of permanent residence are still being thrashed out, we are led to believe that this includes bare land, freehold property or leasehold property. One per permanent resident, it is understood.

Unpleasant Surprise Number Two:

Beach-front property is nearly all leasehold. If is commonly referred to as 'Crown Land' - it is leased by the government to individuals for a period of up to 60 years. Most of the old leases with 15 or so years left on them are currently being renewed for 60 years. The price of renewal can be up to Rs5 million per acre ($166 000) and annual government rentals as much as Rs500 000 per acre ($17 000).

Unpleasant Surprise Number Three

The costs of transfer of property can range from 20% for Freehold property to as much as 35% for Crown Land beach-front property. This includes both the seller and the buyers commitments, as well as agent's commission and notarial fees. It is common practice in Mauritius for sellers to peg their property on a nett selling price, thereby passing on all costs to the buyer. Beware!

Good News: On IRS the government fees are set at $120 000 per IRS unit (seller plus buyer) but there are still agents fees and similar to settle on top of this. This applies up to a property price of $1.4 million. After this, it is $50 000 for the seller and 5% for the buyer. This 5% rather than $70 000 change was introduced in the 2008 budget.

More Good News: No capital gains tax

Unpleasant Surprise Number Four

It is very common for prospective buyers who have settled on a price with the seller to arrive at the seller's door, contract in hand, and find the seller has changed their mind. Many sellers, particularly of beach-front property are heavily influenced by their children, most of whom are greedy.

Unpleasant Surprise Number Five

Beach-front property is probably some of the most desirable property in the world, but from a yield point of view or capital return, it can be terrible. If it is life-style that the buyer is looking for, then beach-front it must be, but if you are looking for a good return, either from a rental or a capital gain, tread carefully. The costs of transfer are big. The holding costs are high.

Unpleasant Surprise Number Six

Mauritius is not big on town planning, nor is there an even handed administration of building permits. It is possible to purchase a lovely piece of land, build a beautiful house and then have a neighbour with absolutely no taste or consideration build a monstrosity next to you.

The Good News: There are a number of gated communities springing up around the island, particularly in the north and west. These apply building standards that the residents stick to, to a large extent. They also have higher resale rates and rental rates than equivalent houses elsewhere.

I will probably add more points to this blog as I think of them. Or please feel free to add yours.

Monkey Business

2008-05-10T23:37:00.007+04:00

One of the great things about living in Mauritius is that we get the chance to meet the most amazing diversity of people, different backgrounds, different lives, different ways of making a living.

Last night, I met a man who runs a breeding business. He breeds Java Macaque monkeys for sale to foreign (US and European) medical experimenters. I share a shudder with most of you.

They have 22 000 monkeys (parents, breeding males, babies and juveniles) in a number of breeding stations in Mauritius. They have 350 staff and seven full time vets. They monkeys command a top price (around $2 000 per animal) as they are pristine. Other animal breeding countries, such as China, have huge operations, but their product is inferior due to the conditions they are reared in as well as the genetic impurity of the animals - the monkeys should be as similar to each other as possible, to allow for repeatability of results of experiments.

Why is Mauritius so good for breeding monkeys? Because it is an island, and the monkeys have been genetically insulated for over 300 years. They have tested the mitochondrial DNA (mtDNA) of the monkeys and traced them back to two original mothers introduced to the island from Sumatra by the Dutch in the 1600 or 1700's. Scientists use mtDNA to trace human origins to better understand our evolution.

Animal experimenters, I was told, not only like genetically similar monkeys, they also like to have 'clean' monkeys. That means they should be free of defects in the form of bites or other physical anomalies, disease and interestingly, stress. In fact, they have found that a stressed monkey does not survive well, nor produce the same results as an unstressed monkey.

Monkeys are social animals, and the breeders have found that if the monkeys are kept together through the rearing process, and then transported together and even undergo experiments together, this greatly helps reduce their stress.

I realised then that perhaps we humans underestimate the damage we do to ourselves with stress. But I think I would rather be a stressed human than an unstressed test monkey.

Moving to Mauritius?

2008-05-06T19:57:00.012+04:00

We moved to Mauritius in 1993, our little family of four. Two young girls needed schooling. My wife was not allowed to work. Residence and Work permits were issued for one year. I won't bore you with the mind numbing bureaucracy of those early days.

Now you can get your residence or occupation permit in seven days. It is valid for three years. Your spouse can work. After three years you can apply to get permanent residency and with that comes the possibility to own a home - anywhere, not just in some high priced golf resort.

Then there are the tax benefits. Individuals are taxed up to a maximum of 15%, not on their world wide income, but just on their domestic remittances. Companies are taxed at 15% - unless you use a global business company, in which case, the rate drops to an effective 3% or even 0%. No death duties, no capital gains tax. Paradise has just got better!

Ok. Now that we have you all excited, it's time for a reality check.

Reality number one: If you are hoping to educate your children in Mauritius, the bad news is that the private English medium schools are pretty full. So fix that one before you pass go.

Reality number two: The application process is not hassle free. You have to bring the right documents with you, and plan your time carefully. My company helps with this. Visit our site: http://frontfin.com for more information.

Reality number three: Rental homes are expensive, and quality homes are hard to find. A trick here might be to get your residence or occupation permit for three years, but then stay in your home country until you qualify to buy.

Reality number four: Property prices are shooting up at more than 20% per annum. This might give you problems with the trick proposed above in number three.

Reality number five: If you are going to move here, make sure you plan a sustainable income. Living off your savings will not last long unless the interest is enough - lucky you if this is the case. The good news is that Mauritius is the 8th easiest country in the world to start a business.

Reality number six: South Africans will find that trying to live off money left behind inside the exchange control net will be very difficult. Emigration is the only way. This is a tough decision and requires a lot of running around. Guess what? We can help you here. Send me an email.

Reality number seven: Despite the fact that Mauritius is getting better every day, it is still a developing country. This means that your order for a cafe latte could cause confusion. Buying stuff on the internet works, but wait a month, not a day. People drive a little differently on our narrow and crowded roads. Mauritius has one of the highest deaths per motor vehicle statistics in the world. Most of those that die are outside the vehicle, on a bike or on foot. Then there are lots of sad looking strays and a fair number of road kills to turn your stomach on the way to work. If you are a sensitive animal lover, you will either be filled with the desire to help fix the problem, in which case we all thank you, or you will wail and gnash your teeth, in which case, join the club!

Reality number eight: Planning on bringing or buying a boat to cruise around our crystal blue waters? Good idea. Just get ready to a) Insure and register your boat with the ministry of tourism. This involves an inspection of your vessel, making sure it has the requisite life jackets, bucket and first aid kit. I hear that it is really hard to get the boat licensed these days as the authorities believe there are enough pleasure craft on the water and b) Attend classes and pass a skippers exam so you can drive the boat. No, your overseas yacht masters certificate does not qualify you, but you will find the exam easy.

That's enough for now. I still think that I am one of the luckiest people in the world to own a home and live on this stunning island, free of the risks, stress and horrible lifestyles of most civilized countries.

If you want more information, please contact us. Our contact details are on the banner of our home page: http://frontfin.com. If you are looking for a high level of detail, please understand that we are a commercial operation and may not be able to help you due to time constraints, or we will charge for the time. Click home and then go to the Link to Frontfin Mauritius on the main blog page.