Africa-focused fund managers can save up to 31% by choosing this leading jurisdiction

The key attributes of Africa’s leading jurisdiction for investment funds

Africa’s leading International Financial Centre puts forward many key attributes that attract interest from investors and corporates, including fund managers, all around the world. These include:

• Most business-friendly and investment-friendly country in Africa (World Banks’s 2020 Doing Business Report);
• A diversified and stable economy;
• Hybrid legal system, combining the advantages of English Common and French Civil laws;
• A Rule of law and political stability;
• No exchange control, no Withholding Tax, No Capital Gains Tax;
• Secure and reliable investment destination (risk-mitigating platform);
• Cost-effective solutions: very affordable outsourcing destination;
• A pool of bilingual (English and French) and skilled workforce;
• Extensive network of bilateral agreements (DTAAs and IPPAs);
• Strategic geographical location between Africa and Asia and convenient time zone (GMT+4);
• Member of the SADC, COMESA, African Union, IORA; and
• An innovative listing and capital-raising platform.

How using this jurisdiction adds value to Africa-focused fund managers

The core objective of a fund manager (also referred to as ‘General Partners’) is to achieve the highest possible shareholder return on investment whilst satisfying investor reporting requirements and stringent regulatory requirements. The main challenges they face when setting up a Fund are choosing the most appropriate jurisdiction and selecting a cost effective vehicle, both of which are critical to optimising their operating costs and maximising return on investment.

Headquartered in Mauritius, Sunibel Corporate Services has helped clients who have faced and are facing similar situations as fund managers, and understands these challenges. Furthermore, being present in multiple countries allows us to quickly and efficiently analyse the advantages and disadvantages of settling for a jurisdiction. We look at ourselves as partners to a project rather than just being a service provider.

Our multidisciplinary team provides professional fund administration services. They are guided and driven by Kristoffer Huldt, a seasoned professional with over 15 years’ experience in the fund industry obtained at international level and who acts as director for funds in multiple jurisdictions, both in the EU and other jurisdictions.

Sunibel Corporate Services is driven by a best-fit approach. We help Africa-focused fund managers mitigate the operational risk through our specialised fund accounting, transfer agency and compliance teams’ expertise. Our advanced technology helps fund managers meet investors’ expectations for independent and timely reporting. As fund managers continue to face margin pressures, outsourcing their fund administration to Mauritius, with Sunibel, is an attractive alternative.

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A well-regulated and compliant jurisdiction, well-known among fund managers

The OECD recently indicated Mauritius does not have any harmful practices in its tax regimes, fulfilling all the requirements of the BEPS Action 5. In addition, it was found being fully compliant with EU tax good governance principles and was removed from the list of jurisdiction considered to be acting as tax havens by the Council of the European Union.

The jurisdiction is fully compliant with FATCA and CRS. Furthermore, being compliant with the Financial Action Task Force Recommendations, Mauritius has in place high AML/CFT framework. By setting up their Funds in this jurisdiction, Africa-focused fund managers can ensure they tick the box in terms of compliance and regulatory requirements.

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To know how we can help you, fund managers, in addressing your challenges and maximising return on investments for investors, do not hesitate to get in touch .

Disclaimer

This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.

Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd (“Sunibel”), its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.

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