Mauritius is synonymous with being a tax haven but the government plans to change this by creating a new trading platform where African currencies can be hedged against the US dollar.

According to an AFKInsider report, overseas tax havens allow the country’s largest corporations to avoid massive tax obligations that eventually fall onto the taxpaying public.

The Indian Ocean island is in talks to boost ties with stock exchanges in Johannesburg, Nairobi and India. This will encourage cross-listing shares to develop markets and help the country become a route for investment to Africa from India and other countries.

To benefit from the double tax avoidance treaties Mauritius has with African countries, companies must meet a range of requirements. These include having at least two resident directors and using Mauritian banking accounts for transactions, while global companies need to show they are not solely using the country to avoid higher taxes elsewhere.

27 October 2015
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