By Shruti Menon Seeboo
Ahead of the upcoming AfSIC conference, H.E Dr. Hlamalani Nelly Manzini, the South African High Commissioner to Mauritius, shared her insights on the growing investment relationship between the two countries.
In an exclusive interview, the High Commissioner discussed Mauritius’ attractiveness as an investment destination, the key sectors in South Africa that Mauritian investors are exploring, the regulatory framework and incentives in place to attract foreign investment, and the potential for collaboration and partnerships between Mauritian and South African businesses.
Mauritius has established itself as a favorable investment destination, offering a conducive business environment, political stability, and a skilled workforce. Its strategic location and well-developed infrastructure make it an attractive option for South African investors. Mauritian investors are increasingly interested in exploring opportunities in South Africa’s key sectors, including renewable energy, agriculture, tourism, and technology. The country’s abundant natural resources, growing market, and supportive government policies make it a promising investment destination. Excerpts:
- How does South Africa view Mauritius as an investment destination, particularly in terms of its role as a regional financial hub and its strategic location?
In 2023 South Africa was the second largest source of foreign direct investment (FDI) in Mauritius after France, representing about 15% of total FDI in Mauritius and 88% of FDI to Mauritius originating from Africa. South Africa regards Mauritius as a significant investment destination, particularly due to its strategic role as a regional financial hub. Mauritius ranks highly in financial market infrastructure, consistently placing in the top three in the Absa Africa Financial Markets Indexi (ABSA, African Financial Markets Index 2023), alongside South Africa being first on the African continent. It is well-ranked (see graph 1. below) for its market transparency, tax regime, and sustainable financial market frameworks, making it attractive for South African investors.
Figure 1: Financial market performance of various African countries
Source: ABSA, AFMI, 2023.
For South African investors as highlighted by ABSA’s African Financial Markets index Mauritius as a financial hub boasts a relatively large market size compared to other African countries, reflecting its well-established financial infrastructure and strategic role as a regional financial hub, attracting both domestic and international investments. Its liquidity remains moderate but outperforms many African peers, indicating efficient market operations and it also offers product diversity, offering a broad range of financial instruments, including traditional equities and bonds, as well as newer products such as ESG- related assets and Islamic financial products, cementing its status as a competitive financial center. Its market depth supports robust trading and investment activities, bolstered by a favourable tax environment and strategic location, just 3,099 kilometers from South Africa. This proximity has enhanced its appeal to South African investors, leading to the presence of numerous South African companies in the country across the financial services and real estate sectors.
2. What are the key sectors or industries in South Africa that Mauritian investors are currently showing interest in, and what are the main drivers behind this interest?
South Africa and Mauritius have cultivated strong and expanding bilateral relations for over 26 years, driven by shared economic and strategic investment interests. Both countries share a common vision for regional economic integration, underpinned by peace and stability, democracy, good governance, and respect for the rule of law.
The relationship between the two nations is multifaceted, focusing on trade, investment, and tourism. Mauritius has become a vital hub for South African businesses, particularly in financial services and real estate. In return, South Africa serves as a key partner for Mauritius in sectors such as manufacturing, logistics, and retail. The cumulative trade between South Africa and Mauritius in 2023 amounted to approximately R 15.20 billion with exports to Mauritius amounting to R 11.60 billion and imports from Mauritius for the same period amounting to R 3.59 billion (South African revenue Services, Trade Statistics, 2023).
Figure 2: Merchandise Exports from South Africa to Mauritius* (% contribution to exports)
Source: SARS, Trade Statistics, 2023.
Figure 3: Merchandise Imports from Mauritius to South Africa (% contribution to total imports)
Source: SARS, Trade Statistics, 2023
From an investment perspective, South Africa’s manufacturing sector offers substantial opportunities, particularly in industries such as automotive components, pharmaceuticals, and electronic goods. The transport and logistics sector also presents significant potential, with ongoing infrastructure improvements designed to enhance trade efficiency and regional connectivity, making it an attractive investment target for Mauritian businesses. These opportunities become even more pronounced when viewed through the growth potential enabled by the African Continental Free Trade Area (AfCFTA), which opens access to a unified market across the continent.
Further investment prospects exist in financial services, real estate, and agriculture, where South Africa’s strong financial markets and agri-processing sectors offer a solid foundation for growth. Investor interest extends beyond bilateral ties between the countries to broader regional development opportunities underpinned by both nations pivotal roles in advancing African economic integration through regional organizations such as the Southern African Development Community (SADC) and the African Union (AU).
3. Can you discuss the regulatory framework and incentives in place in South Africa to attract foreign investment, especially from Mauritius?
South Africa’s attractiveness as a trade and investment destination is anchored by its advanced and diversified economy, boasting world-class industrial infrastructure. It is the most developed economy on the African continent, with sophisticated financial, legal, and telecommunications sectors. South Africa is also one of the leading cleantech FDI destinations in Africa, attracting significant foreign investment. As a preferred investment hub, nearly 50% of the estimated 400 multinational corporations operating in Africa are headquartered in South Africa.
The country offers a wide range of investment incentives and industrial financing interventions aimed at stimulating commercial activity, infrastructure development, and green energy investments. Moreover, South Africa’s trade rules are designed to support expansion into the African Continental Free Trade Area (AfCFTA), further enhancing its appeal as a strategic investment base.
Establishing a manufacturing presence in South Africa’s Special Economic Zones (SEZs) offers strategic advantages for investors, particularly in the context of the AfCFTA. These SEZs reduce production costs while facilitating smoother market access across Africa, positioning businesses for sustained growth and market expansion. Purpose-built industrial estates in South Africa leverage both domestic and foreign direct investment (FDI) in value-added manufacturing and service industries. The 11 key SEZs, spread across nine provinces, are pivotal in supporting the local industrial manufacturing base:
- Coega SEZ (Eastern Cape): Key sectors include agro-processing, automotive, aquaculture, energy, metals, logistics, and business process services.
- Richards Bay SEZ (KwaZulu-Natal): Focuses on manufacturing and storage of minerals, with a vision to boost beneficiation, investment, economic growth, skills development, and employment.
- East London SEZ (Eastern Cape): Offers customized solutions for automotive, agro-processing, and aquaculture sectors, facilitating manufacturing and processing for export to global markets.
- Saldanha Bay IDZ (Western Cape): Positioned as an oil, gas, and marine repair engineering hub, with logistics, repair, maintenance, and fabrication services.
- Dube TradePort SEZ (KwaZulu-Natal): Integrates an airport, cargo terminal, warehousing, offices, retail, and hotels. Includes Dube TradeZone and Dube AgriZone, supporting warehousing, manufacturing, assembly, and agricultural activities.
- Maluti-A-Phofung SEZ (Free State): Licensed for general manufacturing, offering a production base for light and medium industrial manufacturing.
- OR Tambo SEZ (Gauteng): Focuses on the beneficiation of precious metals and minerals through light, high-margin manufacturing processes.
- Musina/Makhado SEZ (Limpopo): Targets light industrial, agro-processing, and metallurgical/mineral beneficiation clusters, offering full value chains for mineral processing, agro-processing, and manufacturing.
- Tshwane Automotive SEZ (TASEZ) (Gauteng): Africa’s pioneering automotive city, located in Tshwane, enhances economies of scale and scope through its proximity to the established automotive industry, reducing business costs while fostering innovation and growth in the automotive sector.
These SEZs are critical to South Africa’s strategy for attracting both local and international investment, providing a competitive environment for businesses looking to capitalize on the country’s industrial capacity and regional trade opportunities.
4. How does South Africa see the potential for collaboration and partnerships between Mauritian and South African businesses in the areas of innovation and technology?
South Africa’s commitment to science, technology, and innovation as key drivers of growth and development—nationally, continentally, and globally—remains unwavering. This vision aligns with Agenda 2063, which aims to build the Africa we want by forging innovative paths toward a prosperous and integrated future for the continent. In January 2020, the Mauritius Research and Innovation Council (MRIC) and South Africa’s Technology Innovation Agency (TIA) signed a pivotal collaboration agreement. This agreement is designed to promote targeted social impact, market-oriented research cooperation, and technological innovation partnerships between the two nations, focusing on sectors such as the Green and Blue Economies, Smart Agriculture and Life Sciences, Manufacturing, Social Impact Innovation, and Emerging Sectors.iii (South African Government, Department of International Relations and Cooperation, 2023)
South Africa has the necessary technology and innovation platforms to support research and development between the two countries. Institutions like the Council for Scientific and Industrial Research (CSIR) and the Agricultural Research Council (ARC) play crucial roles in technology localization and innovation, promoting industrialization and agricultural sustainability. In addition, the South African Medical Research Council (SAMRC) is dedicated to improving health outcomes through rigorous clinical research.
South Africa is also a leader in Fourth Industrial Revolution (4IR) technologies, offering collaborative platforms that bring together businesses, government, and academia to co-create, prototype, and implement cutting-edge solutions. The country is home to some of the continent’s most prestigious academic institutions, which are central to driving research, innovation, and thought leadership. Universities like the University of Cape Town (UCT), University of the Witwatersrand (Wits), and Stellenbosch University consistently rank among the top in Africa and are recognized globally for their contributions to fields such as engineering, medicine, technology, and social sciences.
These academic institutions not only advance research in 4IR technologies—including artificial intelligence, robotics, and biotechnology—but also play a critical role in human capital development, producing a highly skilled workforce essential for sustaining South Africa’s knowledge economy and global competitiveness. Their strong focus on research output and innovation aligns with national priorities, making them integral to South Africa’s socio-economic development and positioning the country as a hub of academic excellence and technological innovation in Africa.
As Africa continues to be one of the fastest-growing regions in the world, expanding its influence in the global innovation and digital economy, the partnership between South Africa and Mauritius in the innovation space is set to unlock new markets and drive transformative growth. Together, these countries can lead Africa’s digital revolution by enhancing cross-border connectivity, ensuring data sovereignty, and advancing the development of digital infrastructure across the continent. This partnership will also promote Mauritius and South Africa as key players within the African Continental Free Trade Area (AfCFTA), improving access for investors and ensuring that Africa remains competitive on the global stage.
5. What specific initiatives or policies is South Africa implementing to foster collaboration and partnerships with other African countries, including Mauritius, in the areas of innovation and technology?
South Africa and Mauritius have established several key agreements to strengthen their economic and investment relations. The Double Taxation Avoidance Agreement (DTAA), in effect since 2015, prevents businesses and individuals from being taxed in both countries on the same income, fostering a more favorable environment for cross-border trade and investment. The Investment Promotion & Protection Agreement (IPPA), in force since 2005, provides legal protection for investors from both nations, ensuring the security of their investments and promoting bilateral economic cooperation. Additionally, a Memorandum of Understanding (MoU) was signed in 2013 with Trade and Investment South Africa (TISA), a division of South Africa’s Department of Trade and Industry, to facilitate greater collaboration in trade and investment promotion. This MoU further strengthens economic ties between the two countries, encouraging mutual growth.
Furthermore, the Mauritius Research and Innovation Council (MRIC) and South Africa’s Technology Innovation Agency (TIA) signed a pivotal collaboration agreement aimed at promoting targeted social impact, market-oriented research cooperation, and technological innovation partnerships between the two nations. These agreements collectively enhance the investment landscape, fostering deeper economic integration and innovation-driven growth for both countries.
6. How does South Africa view the potential for cross-border investments and partnerships between Mauritius and other African countries, and what role can South Africa play in facilitating such collaborations?
South Africa views cross-border investments and partnerships between Mauritius and other African countries as vital to advancing regional integration and mutual economic growth. As the most industrialized economy in Africa, South Africa is strategically positioned to facilitate these collaborations, particularly within the framework of the African Continental Free Trade Area (AfCFTA). South Africa recognizes Mauritius as a critical hub for financial services and investment in Africa, making it an ideal partner for driving continental economic integration.
South Africa’s leadership in key multilateral institutions such as the African Union (AU), BRICS, and the G20, positions it to play a crucial role in fostering such cross-border collaborations. With South Africa set to assume the G20 presidency in 2025, the country is poised to further strengthen its influence on global trade policies and investment strategies that benefit not only South Africa and Mauritius but the entire African continent. These multilateral platforms allow South Africa to champion initiatives that encourage investment flows, technological transfer, and economic partnerships that align with the goals of the AfCFTA, helping to eliminate barriers and increase market access across Africa.
7. How does South Africa see the AFSIC conference contributing to its broader investment and development goals? What specific outcomes or partnerships does South Africa hope to achieve through its participation in AFSIC?
South Africa views the AFSIC (Africa Financial Services Investment Conference) as a strategic platform to attract increased foreign direct investment (FDI) and drive its broader development goals. AFSIC’s unique ability to generate substantial deal flow—from venture capital for start-ups to large-scale infrastructure projects seeking capital from private equity firms and development finance institutions—directly aligns with South Africa’s efforts to position itself as the gateway for investment into Africa. By leveraging AFSIC, South Africa aims to highlight its robust investment landscape and showcase key sectors such as infrastructure, renewable energy, and technological innovation, which are critical to its economic transformation and development agenda.
South Africa’s participation, led by entities such as the South African High Commission, Infrastructure SA, Business Unity South Africa (BUSA), Industrial Development Corporation (IDC)and the Development Bank of Southern Africa (DBSA), underscores the country’s commitment to engaging directly with global investors. Through AFSIC, South Africa seeks to secure capital for priority projects that will drive economic growth, create jobs, and bolster the country’s sustainable development trajectory. By promoting large-scale investment opportunities—particularly in infrastructure projects that can support trade, connectivity, and industrial growth—South Africa is aiming to attract long-term investors who can contribute to its Just Energy Transition (JET), support infrastructure development, and drive economic transformation in key sectors such as manufacturing and agriculture.
