MAURITIUS: An Introduction to General Business Law

Mauritius continues to face the Covid-19 pandemic and its adverse consequences on businesses, including disruption to trade, supply chains and investment flows. However, the sanitary protocols that have been implemented by the government, which remain in force until March 2022, have so far proved effective in containing the spread of the virus whilst also allowing for a steady economic recovery.

In July 2021, Mauritius reopened its borders to welcome its first commercial flights after an acceleration in its vaccination campaign. The vast majority of the population has received at least two doses of a recognised Covid-19 vaccine. This brought relief to the tourism sector which had suffered for the two preceding years. Air Mauritius Ltd, the national airline, exited voluntary administration in October 2021 after an injection of funds from the government to ensure its sustainability.

The investments of the Mauritius Investment Corporation (‘MIC’) are presently sustaining economic activities in those sectors most affected by the pandemic. The government, through the Bank of Mauritius, set up the MIC, a Special Purpose Vehicle which has the objective of assisting systemically large and viable corporations or companies incorporated in Mauritius (having a minimum annual turnover of MUR100 million) and which are financially distressed directly as a result of the Covid-19 pandemic.

In addition to the MIC, there have been various schemes set up to provide aid and support to small and medium-sized enterprises (SMEs) in Mauritius. The Ministry of Finance has set up a support platform through the State Investment Corporation (‘SIC’) as part of its economic recovery plan to assist SMEs, as well as individuals, affected by the Covid-19 pandemic. The SIC has also launched an Equity Participation Scheme to assist enterprises with annual turnover exceeding MUR250 million to overcome their financial difficulties in the wake of Covid-19. Still under the aegis of the Ministry of Finance, the Investment Support Programme Limited (‘ISP’) launched several schemes to enable SMEs to have access to finance at competitive rates to lower their cost of production, improve their productivity, become more sustainable and contribute to the creation of jobs until June 2022.

To further mitigate the impact of the Covid-19 pandemic on the economy, the Mauritian parliament has passed tailored legislation which includes the introduction of moratoriums for rent, banking loans and taxes. The overriding objective remains to support the local economy and businesses. These supportive measures have been extended to 30th June 2022. Amongst other enactments, the Covid-19 (Miscellaneous Provisions) Act was passed. This has amended a series of enactments to address the challenges posed by the Covid-19 pandemic, particularly in relation to employment, corporate, insolvency, banking and regulatory issues. Employment laws have also been amended with a view to preventing termination of employment on economic grounds.

International air travel remains affected by the pandemic, although to a lesser extent. Several measures have been put into place, through regulations made by the Minister of Health, under the Quarantine Act, to lessen restrictions on international air travel while promoting the need for observance of sanitary protocols. For instance, as of 1st October 2021, all incoming passengers are required to present a negative PCR test taken within 72 hours from the last point of embarkation. Quarantine is no longer required for fully vaccinated guests subject to the negative PCR requirement. Unvaccinated guests, on the other hand, are required to book a 15-day quarantine stay in an official quarantine hotel, subject to three other PCR tests on Day 0, Day 7 and Day 14.

On 21st October 2021, The Financial Action Task Force (‘FATF’) removed Mauritius from its ‘grey’ list of jurisdictions which were subject to increased monitoring after strategic deficiencies had been identified in their approach to anti-money laundering and combatting terrorism financing (AML/CFT).

This has led to an increase in business for providers of financial services and management companies, as well as the return of investors. Mauritius has shown strong commitment in its endeavour to strengthen the effectiveness of its AML/CFT regime, especially under difficult conditions and circumstances caused by the Covid-19 pandemic. Key reforms made by the country include passing strict reporting legislation for entities and individuals offering services in the financial sector, providing training to law enforcement authorities with a view to ensuring capability to conduct money laundering inquiries and investigations and ensuring access to basic and beneficial ownership information by competent authorities in a timely manner. The Financial Services Commission (‘FSC’) of Mauritius also reiterated its unflinching commitment in the fight against money laundering, terrorism financing and proliferation financing, to protect the integrity of the financial services sector including the global business sector.

In the same vein, on 7th January 2022, the European Commission confirmed that Mauritius has been removed from the European Union (‘EU’) list of “high-risk third countries,” following measures taken by the country to improve its AML/CFT regime. This also led to the United Kingdom removing Mauritius from its list of high-risk countries, under the UK Money Laundering and Terrorist Financing (Amendment) (No. 3) (high-risk countries) Regulations 2021.

The political situation in the country remains stable. In 2022, the Supreme Court heard and ruled upon electoral petitions which challenged the election of government candidates in the November 2019 general election. In one of the eleven electoral petitions entered in the Court, a recount was ordered and this was held on 1st February 2022. The recount returned the same candidate. Other election petition cases are ongoing.

The legal profession has led by example in adapting to the ever-changing state of affairs caused by the Covid-19 pandemic and the measures put into place to curb its effects. Lawyers, in a formerly conservative system, have become more flexible in their working methods. The business of the Court continues.