Mauritius has remained highly exposed to significant external pressures stemming from ongoing global geopolitical tensions – including conflicts in the Middle East and Eastern Europe – as well as disruptions in international trade. These challenges have intensified inflationary pressures, with headline inflation reaching 3.7% in 2025. In response, the Bank of Mauritius (BOM) raised the Key Rate from 4.5% to 4.75% on 20 May 2026. This indicates a cautious monetary policy approach focused on strengthening price stability in the face of elevated external uncertainty.

Following the change in government in late 2024, the Mauritian authorities have pursued measures aimed at fiscal consolidation, good governance and strengthening financial-sector supervision. The powers of the Financial Services Commission of Mauritius have also been expanded to facilitate co-operation with foreign supervisory institutions and special investigations conducted in collaboration with international regulators, thereby strengthening cross-border regulatory enforcement.

In addition, the Economic and Financial Measures (Miscellaneous Provisions) Act 2026 has amended the Financial Services Act to establish a National Fintech Governance Committee (NFGC), which will serve as a central coordination and oversight body for the implementation of fintech strategies in Mauritius. The NFGC may co-opt representatives from government institutions, statutory bodies, financial institutions, fintech operators and academia, and may set up subcommittees as it considers necessary to attain its objectives, reflecting the authorities’ continued efforts to formalise the institutional governance of fintech policy alongside the existing widening of the Financial Services Commission’s cross-border enforcement powers.

The escalation of geopolitical tensions in 2026, in particular the conflict in the Middle East involving the United States and Iran, has further strained global trade networks. These developments have led to increased import costs, particularly for critical goods such as fuel and food; petroleum products account for around 20% of Mauritius’s total import bill, with the bulk sourced from Oman, leaving the economy structurally exposed to Gulf-related price and supply shocks. Mauritius’s petroleum import bill rose by 82% in March 2026 alone, with a further 21% increase projected for April 2026. The resulting surge in living and operational expenses has had direct consequences for both households and businesses in Mauritius, contributing to a downward revision of the BOM’s 2026 growth forecast to 2.8%, in line with the International Monetary Fund (IMF) projections.

Amid persistent inflation, estimated at 4.1% as at June 2026, and an extended period of elevated interest rates, demand for credit facilities from both the household and corporate sectors has nevertheless continued to increase, despite the relatively high cost of borrowing. For households, this trend reflects both structural demand for housing and consumer durables, as well as a gradual recovery in private consumption following the pandemic and subsequent global shocks. On the corporate side, firms have sought additional financing to support investment in capacity expansion, working capital requirements, and the refinancing of existing debt obligations in an environment of tightening liquidity.

Banking activities continue to represent a central pillar of growth and profitability for Mauritian banks, enabling diversification of revenue streams and strengthening of their regional footprint, particularly in Africa and Asia. In parallel, the investment strategies of domestic banks have been increasingly directed towards higher-yielding but liquid assets, as institutions aim to enhance returns while preserving flexibility. This approach has been pursued with heightened caution, as banks remain mindful of potential market volatility, currency depreciation risks, and the broader global uncertainty arising from geopolitical tensions and financial market fluctuations. The Mauritian rupee depreciated by 1.4% over the March-May 2026 period amid rising demand for foreign currency driven by higher fuel import costs and a stronger US dollar. At the same time, the Bank of Mauritius’s cross-border stress testing confirmed the banking sector’s resilience to adverse conditions in foreign counterparty exposures through the end of 2025. The Financial Stability Report for December 2025 noted that banks’ FX liquidity buffers remained well above the regulatory minimum of 100%, that the NPL ratio for credit allotted outside Mauritius improved, and that the banking system continued to act as a net provider of funds abroad. Collectively, these dynamics underscore the delicate balance between growth ambitions and risk management that characterises the current banking sector strategy in Mauritius.

The ability of corporates to raise finance by issuing high-yield corporate bonds has made them less reliant on banks for funding. Some corporates also leverage on high-yield bond structures to refinance existing bank loans via bond issuance.

The domestic bonds market has been very active recently. From an international perspective, Mauritius has also been a popular platform for the issuance of these types of instruments, either through Mauritian special-purpose vehicles or through foreign corporates listing their high-yield bonds on the Mauritian stock exchange.

Peer-to-peer lending has proved very popular among start-ups and sole traders seeking microfinancing or financing of their working capital, supply chain or business expansion.

Other alternative credit providers, such as money lenders or credit finance providers licensed by the Financial Services Commission of Mauritius, are also providing funding options. It is anticipated that access to credit will improve the performance of Mauritius and African businesses as the total amount of capital available rises and the investment ecosystem develops.

Peer-to-peer lending and other alternative credit providers are still, however, in their infancy and require time for mass adoption. Consequently, despite their growing popularity, the volume of funds raised on peer-to-peer lending platforms and other alternative credit providers is not significant enough to disrupt the traditional banking market, which remains the favoured financing route.

From a corporate lending perspective, a clear trend in more sophisticated lending structures has surfaced. Mezzanine financing and quasi-equity instruments are being used with the aim of creating long-term value for local projects.

Local banks have also shown robust participation in syndicated financing on local and outbound projects, as well as cross-border financing. Alongside this, there has been a notable growth in fund financing in support of private equity and investment funds operating in Mauritius.

In recent years, Mauritius has acknowledged that sustainable finance is a catalyst for change. The Financial Services Commission introduced the new Disclosure and Reporting Guidelines for ESG Funds. In light of these guidelines, investment businesses are now required to ensure greater transparency, consistency and accountability in how ESG strategies are disclosed, implemented and reported.

To embed ESG standards across the financial sector, on 18 January 2024, the Financial Services Commission issued a draft rule for a Mauritius Green Fund for public consultation. In essence, the Mauritius Green Fund must meet one of the green criteria that is endorsed by the Financial Services Commission and must be established with the objectives of spreading risk and seeking a return for investors whilst mitigating environmental damage. While this rule has not yet been enacted in Mauritius, it is a step forward in the adoption of ESG principles in the financial sector.

Recently, the Bank of Mauritius, through the Sustainable Use of Natural Resources and Energy Finance Programme, which was developed by the Agence Française de Développement, has been advancing its ESG agenda by integrating climate risks into financial regulations, enhancing institutional capacity and promoting sustainable investments, reinforcing its commitment to a resilient and environmentally sustainable financial system. 

The government has also expressed its firm intention of decreasing its carbon footprint, by introducing several incentives for the financing of projects in the renewable energy sectors.

From a retail perspective, the acquisition of fast chargers for electric vehicles, rainwater-harvesting systems and photovoltaic systems for domestic use are fully tax-deductible.

The Guideline on Climate-related and Environmental Financial Risk Management was published by the Bank of Mauritius and became effective on 1 April 2022, with a view to assisting local financial institutions in embedding sound governance and risk management frameworks for climate-related and environmental financial risks within their existing risk management frameworks.

It is proposed that the Financial Reporting Act be amended to empower the Financial Reporting Council to recognise, adopt or recommend for adoption sustainability reporting standards, including climate-related disclosure standards, such as the International Financial Reporting Standards and the Sustainability Disclosure Standards issued by the International Sustainability Standards Board, which may be applied on a voluntary or mandatory basis and will be relevant to issuers of green and sustainability-linked financing instruments in Mauritius.

Banks

According to the Banking Act 2004, no person is allowed to engage in banking business in Mauritius without a banking licence issued by the BOM.

Banking business is defined under the Banking Act 2004 as:

• the business of accepting sums of money, in the form of deposits or other funds, whether or not those deposits or funds involve the issue of securities or other obligations howsoever described, withdrawable or repayable on demand or after a fixed period or after notice; and
• the use of those deposits or funds, either in whole or in part, for:
1. loans, advances or investments, on their own account and at the risk of the person carrying on that business; or
2. the business of acquiring, under an agreement with a person, an asset from a supplier for the purpose of letting out the asset to the person, subject to payment of instalments together with an option to retain ownership of the asset at the end of the contractual period;
• paying and collecting cheques drawn by or paid in by customers and making other payment instruments available to customers; and
• includes other such services as are incidental and necessary to banking.

Procedures

An applicant wishing to be authorised to operate as a bank must be a body corporate and must apply to the BOM using the prescribed form, accompanied by a non-refundable processing fee of MUR1 million (approximately USD20,837). Among other AML, cybersecurity and related prescribed procedures and requirements, including the minimum capital adequacy ratio which the applicant must adhere to, the applicant must show adequate substance in Mauritius by having a principal place of business in Mauritius. In terms of staffing requirements, the applicant must have at least ten suitably qualified full-time officers, including the CEO, the deputy CEO and key functional heads. The estimated operational costs of the applicant must not be less than MUR25 million (approximately USD520,928). Prior to the start of operations, the proposed bank must have in place a core banking system and a full-fledged AML/CFT transaction monitoring system and software.

The BOM has also been empowered to establish a Cyber Threat Intelligence Sharing Platform to facilitate the prompt exchange of cybersecurity intelligence among banks and other financial institutions, and may require such institutions, including applicants for a banking licence, to participate in the platform on terms and conditions determined by the BOM.

Non-Banks

Moneylending activities are regulated by the Financial Services Commission of Mauritius. The Financial Services Act 2007 provides that, subject to certain exemptions set out in the Fifth Schedule of the Financial Services Act 2007, any person, other than a bank or a non-bank deposit-taking institution, whose business is that of moneylending or who provides, advertises or holds themselves out in any way as providing such services, whether or not they possess or own property or money derived from sources other than the lending of money, and whether or not they carry on the business as a principal or as an agent, is required to apply for a licence from the Financial Services Commission.

Procedures

An applicant wishing to be authorised to operate as a non-banking financial institution conducting moneylending activities must be a company and must apply to the Financial Services Commission using the prescribed form, accompanied by a non-refundable processing fee, which varies depending on the type of licence being applied for. Among other AML, cybersecurity and related prescribed procedures and requirements, including the minimum paid-up and unimpaired capital (normally around MUR30 million or an equivalent amount (approximately USD625,000) that the applicant must adhere to, the applicant must show adequate substance in Mauritius by having a principal place of business in Mauritius and complying with other prescribed requirements.

In addition to the minimum paid-up and unimpaired capital requirements referred to above, it is proposed that the Financial Services Act be amended to increase the general minimum stated capital requirement applicable to Financial Services Commission licensees, including non-bank lenders, from MUR1 million to MUR3 million (approximately from USDUSD20,837 to USD64,546).

There is currently no restriction on foreign lenders granting loans from their foreign jurisdiction. However, if those foreign lenders intend to carry on the business of moneylending in Mauritius, they should first obtain the appropriate licence from the Financial Services Commission or the Bank of Mauritius, depending on the activities that they wish to conduct.

There are generally no rules restricting the granting of security or guarantees to foreign lenders in Mauritius. However, when a security involves the taking of a fixed and/or floating charge, certain elements of the activities of the charge-holder will need to be considered.

Under the Mauritian Civil Code, a fixed and/or floating charge can only be granted in favour of an Institution Agréée (the Civil Code Restriction).

An Institution Agréée is, effectively, an approved institution, as listed in the Institutions Agréées Regulations 1988, which lists those entities or category of entities approved to hold a fixed and/or floating charge, and include “any body corporate not registered in Mauritius and having no place of business in Mauritius”.

Although the description of that approved body may appear broad, the Civil Code Restriction has been interpreted narrowly by the Supreme Court (vide Atelier Etude Limousin & others v BPCE International et Outremer & another 2014 SCJ 166).

Given this ruling, the prevailing market perspective has been that a foreign entity can reap the advantages of a fixed and/or floating charge only if it qualifies as a “financing institution”. This stands in contrast to a scenario where the foreign entity might not be directly engaged in financing activities.

The Foreign Exchange Control Act was suspended in 1994. As a result, there is currently no exchange control requiring approval for payments outside Mauritius or for repatriation of profits, dividends or capital gains earned in Mauritius.

While Mauritian laws do not impose any legal constraints on how borrowers can utilise funds from loans or debt securities, it is common to observe contractual limitations on such usage. These limitations are typically established through mutual agreement between the lender and the borrower.

Mauritian laws acknowledge the notion of a trust. Additionally, the Civil Code offers broader concepts that can serve as substitutes for the trust including the mandat (which corresponds to agency) and the tiers convenu (where a third party is jointly appointed by the involved parties to hold the security).

It is a regular occurrence for domestic banks to be appointed as security agents acting on behalf of and for the benefit of foreign lenders when assets used as collateral are situated in Mauritius.

The most common loan transfer mechanisms include:

• loan assignments;
• debt consolidations;
• refinancing;
• loan sales or sell-down; and
• secondary market participation.

In bilateral financing, where the security is held directly by the lender, the security cannot be transferred without involving a prior release and the creation of a fresh security in favour of the new lender.

In certain circumstances, a security agent can be appointed to mitigate the impact of a loan transfer on the existing security.

The laws of Mauritius do not restrict a debt buy-back by the borrower or sponsor. However, it is recommended that the borrower or sponsor consider the appropriate structuring and address potential tax liabilities.

There are no specific rules applicable to “certain funds” in respect of public acquisition finance transactions. However, when dealing with a potential takeover, the law requires that an offeror give a firm intention to acquire the target, containing confirmation by the board of the offeror that sufficient financial resources are available to satisfy the acceptance of the offer. Similarly, where the offer includes a non-cash consideration, the confirmation should provide that all reasonable measures have been taken to secure full payment of the shares acquired. 

Electronic signatures are now fully recognised by the Registrar General of Mauritius and the Conservator of Mortgages of Mauritius. Following the enactment of the Finance Act 2025, any deed or document which has been electronically signed and submitted for registration to the Registrar General of Mauritius and inscription to the Conservator of Mortgages of Mauritius will be given effect. The electronic signatures must be affixed through a secure electronic signature in conformity with Section 16 of the Electronic Transactions Act 2000 for registration purposes. The parties signing with a secure electronic signature must provide a declaration confirming that the electronic signature used in the financing documents is in accordance with the Electronic Transactions Act 2000.

The concept of usury laws is not recognised under Mauritian law. However, the Mauritian courts have the discretion to reduce the amount of interest if it is deemed excessive.

Except when a court order is issued directing the disclosure of such financial contracts, there are no rules and/or laws regarding the disclosure of financial contracts under Mauritian law. The Economic and Financial Measures (Miscellaneous Provisions) Bill 2026 has proposed changes to Section 64 of the Banking Act 2004 in respect of the disclosure of customer information. Should the Bill be enacted, a financial institution would be required to provide information, including customer information, in compliance with an order or notice under the Financial Crimes Commission Act 2023 or the requirements under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act, and would be entitled to make disclosures to the Financial Services Commission or the Financial Crimes Commission established under the Financial Crimes Commission Act 2023, without breaching its confidentiality obligations. The amendments further clarify that, in the event of any conflict between Section 64 and any other enactment (other than the Bank of Mauritius Act, the Financial Crimes Commission Act 2023, the Financial Intelligence and Anti-Money Laundering Act, certain provisions of the Income Tax Act, the Mutual Assistance in Criminal and Related Matters Act, certain provisions of the Public Inquiries Act 2025, and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act), Section 64 shall prevail.

Withholding tax at a rate of 15% may apply on interest payable in certain circumstances. However, there is no withholding tax on interest paid by a corporation holding a Global Business Licence in Mauritius, out of its foreign-source income, to a non-resident lender not carrying on business in Mauritius.

Since 1 July 2025, domestic companies in Mauritius with annual chargeable income exceeding MUR24 million have been required to pay a Fair Share Contribution for a period of three years, ending on 30 June 2028.

Banks are subject to the contribution at a rate of 5% on their total chargeable income and to an additional Fair Share Contribution of 2.5% on chargeable income derived solely from domestic operations, excluding income from dealings with non-residents and Global Business Companies.

VAT is applicable at a flat rate of 15% to VAT-registered entities on all goods and services supplied by them in Mauritius, subject to certain supplies being exempt under the Income Tax Act 1995 and the various income tax regulations. With effect from 1 January 2026, VAT also applies to digital and electronic services supplied by non-residents to consumers in Mauritius. 

Registration duty is payable on the registration of a document, either based on a proportional duty or as a fixed amount depending on the nature of the transaction evidenced by the document.

A Mauritian law-governed fixed and/or floating charge, mortgage and a bordereau pursuant to an assignment agreement are required to be registered (and inscribed for fixed and/or floating charges and mortgages), while registration of finance documents and security documents other than those aforementioned is at the option of the lender.

Some of the tax concerns involve the following:

• withholding tax;
• transfer pricing;
• foreign exchange risks; and
• permanent establishment.

Withholding tax can be mitigated by optimising the use of existing tax treaties.

Transfer pricing risks can be mitigated by looking at the rates applied in comparable transactions and applying the arm’s length principle.

Foreign exchange risks can be mitigated by making use of currency hedging instruments or ensuring that the loan as well as the principal and interest repayments are made in the lender’s currency.

Permanent establishment risk can be mitigated by ensuring that the lender’s activities in Mauritius do not create a permanent establishment.

The assets available as collateral to lenders in Mauritius consist of:

• shares;
• land/buildings (immovable property);
• contractual rights and receivables;
• bank accounts;
• intellectual property and other intangible and tangible rights;
• equipment/material, stocks and outillage (tools of trade);
• future assets; and
• business undertakings.

The common forms of security granted are as follows.

• Security over shares:
1. a commercial pledge when the shares of a company that holds a licence issued by the Financial Services Commission are pledged in favour of a financial institution;
2. a civil share pledge when the pledged shares relate to a domestic company; and
3. a fixed and/or floating charge can also be granted as security over the shares.
• Security over land or building (immovable property):
1. a mortgage under the Mauritian Civil Code; and
2. a fixed and/or floating charge.
• Security over contractual rights and/or receivables:
1. an assignment of contractual rights and/or receivables by way of security; and
2. a pledge under the Mauritian Commercial Code.
• Security over bank accounts:
1. pledge under the Mauritian Commercial Code; and
2. a fixed and/or floating charge.
• Security over intellectual property and other intangible and tangible rights:
1. an assignment of rights by way of security; and
2. a fixed and/or floating charge.
• Security over equipment/material, outillage (tools of trade) and stocks:
1. a special pledge under the Mauritian Civil Code; and
2. a fixed and/or floating charge.
• Security over future assets:
1. a pledge or an assignment by way of security under the Commercial Code; and
2. a floating charge.
• Security over a business undertaking (fonds de commerce): a pledge of the business undertaking.

Perfection Requirements

A share pledge

In addition to the execution of the share pledge, the pledgor is required to procure the delivery of the following to the pledgee:

• a signed and undated blank share transfer form;
• share certificates or other instruments evidencing or representing the pledged shares; and
• a transfer-in-guarantee instrument signed by the pledgee, the pledgor and the secretary of the company in which the shares are being pledged in respect of the pledged shares.

Fixed and/or floating charge

The fixed and/or floating charge agreement must be prepared in a prescribed format and must be registered with the Registrar General and inscribed with the Conservator of Mortgages of Mauritius.

A memorandum setting out details of the charge must be affixed to the deed prior to inscription. The chargor must deliver the registered deed of fixed and/or floating charge and provide satisfactory evidence of registration and inscription to the secured party.

Mortgage

The deed of mortgage, with the requisite memorandum (bordereau) annexed, must be inscribed in the registers of the Conservator of Mortgages.

Assignment under the Commercial Code

A memorandum, known as a bordereau, which evidences the assignment and forms part of the perfection requirement thereof under the Commercial Code, must be executed by the assignor and must be registered in the interest of the assignee with the Registrar General. The registered bordereau must thereafter be delivered to the assignee by the assignor.

Account pledge

A notice of pledge must be sent to the account bank.

Pledge of business undertaking (fonds de commerce)

The pledge of business undertaking is created under a deed prepared by a notary public or a deed under private signature and must be registered with the Registrar General of Mauritius. The registration with the Registrar General must be made within 15 days of the signing date of the pledge agreement.

Timing and Costs Involved

Depending on the type of entity involved, registration must be effected within eight days or up to three months for companies holding a global business licence (except for the pledge of business undertaking which must be registered within 15 days from the date of the security document). The registration process takes around five to ten business days to complete. Registration duty and administrative fees (formerly stamp duty) payable to the Registrar General amount to around MUR50,700 (approximately USD1,200) per document. Inscription of charges would incur an additional inscription fee of around MUR1,000 (approximately USD23).

The Mauritian Civil Code allows for the creation of a floating charge over all present and future assets of a company as security.

Downstream, upstream and cross-stream guarantees are generally permitted. This type of security is generally granted by way of a corporate guarantee, as provided for under the Mauritian Civil Code. However, the provision of such a guarantee could be restricted where it amounts to providing financial assistance.

The laws of Mauritius restrict a target from providing a loan or guarantee or any form of security where the purpose of such a loan, guarantee or security is for the acquisition of the target’s own shares. In these circumstances, specific conditions must be adhered to by the target before it is permitted to provide any such financial assistance.

Except for the aforementioned restrictions (5.4 Restrictions on the Target), there are generally no other restrictions in connection with, or significant costs associated with, or consents required to approve the grant of security or guarantees.

A security is generally released only when the secured obligation has been paid in full and all facilities which gave rise to the secured obligation have been terminated. However, when dealing with the release of mortgages and fixed and/or floating charges, an additional procedure is required to ensure that the security is erased from the public registers maintained by the Conservator of Mortgages. The erasure is formalised by a letter from the secured party to the Conservator of Mortgages confirming the discharge of the secured obligation, the release of the security and requesting the erasure of the security from the registers of the Conservator of Mortgages.

In respect of pledges and assignments, the secured party is required to return all documents delivered to it at the time of perfection of the security (which include share certificates, blank share transfer forms or, in some instances, the bordereau), and counterparties will update their internal records to reflect the discharge and release.

By way of exception, the parties can also mutually agree to release the security before the discharge of the secured obligation. This can be done by way of a release agreement entered into between the parties providing for the release of the security. The same procedures as discussed above will apply to the release of that security.

In the event of insolvency, the Mauritian Insolvency Act 2009 provides the following ranking of claims of preferential creditors:

• cost of the liquidator;
• costs of compromises by the company with its creditors under the Companies Act;
• payments made pari passu with first-ranking fixed and floating charges and mortgages inscribed for more than three years;
• first-ranking fixed and floating charges and mortgages inscribed for less than three years;
• other secured creditors; and
• all other unsecured creditors who have been proved in the bankruptcy or winding-up.

When competing security interests arise, they are treated equally unless the lenders and the same borrower contractually vary their priority over the security by way of a subordination or intercreditor agreement. The subordination or intercreditor agreement will generally provide that the junior lender will not receive payments from the borrower until the senior lender has been paid.

The contractual provisions of a Mauritian law-governed subordination agreement will survive the insolvency of the borrower and will be recognised and given effect in an insolvency procedure.

Under the laws of Mauritius, the most material security interests that arise by operation of law are special liens. These special liens confer a right on a creditor to be preferred above other creditors, including creditors under a mortgage deed. The most material special lien is the one which is granted to any bank established in accordance with the provisions of the Banking Act. Following a loan, an advance, or other banking facility provided by the bank, a special lien will be granted to the bank on the sum standing to the credit of all accounts of the borrower.

Another special lien that arises by operation of law is the special lien granted to the seller of an immovable property, and which will secure the outstanding payment to be effected by the buyer.

The circumstances in which a secured lender can enforce a security will depend on the contractual provisions of the financing and security documents and on the type of security granted to the lender. In general, an event of default must have occurred under the finance and security documents, which will trigger the enforcement of the security.

Enforcement of a Fixed Charge

A secured lender can enforce a fixed charge that it holds over assets by appointing a public or private registered usher to seize the assets, without the need to serve a commandement (notice) on the debtor. If the debt remains unpaid for three weeks following the date of seizure, the creditor can then sell the seized assets by public auction (in the case of movable assets), or by serving a notice in the same manner previously described (in the case of immovable assets).

Enforcement of a Floating Charge

The floating charge must first be converted into a fixed charge. This is known as the crystallisation of the floating charge. This requires the appointment of a court usher to draw up a memorandum of inventory, which will then be transmitted to the Conservator of Mortgages to be inscribed in its registers, whereupon the charge is converted into a fixed charge. This process may entail further costs in terms of taxes or fees.

Enforcement of a Special Civil Pledge Over Shares

The bank must serve notice on the debtor, stating its intention to proceed with the transfer of the pledged shares. The bank can then cause the pledged shares to be transferred seven days after the notice is served.

Enforcement of a Pledge of Shares Under the Commercial Code

The pledgee must realise the pledged shares by completing and executing the share transfer form. No other formalities are required.

Enforcement of Mortgages

The creditor can enforce a mortgage by serving the debtor with a commandement (notice) notifying the debtor that, if it fails to pay the amount claimed, a seizure will be effected on the mortgaged property. The service of the commandement is effected through a public or private registered usher. The seizure of the mortgaged asset cannot be effected until at least ten days have elapsed since the date on which the commandement was served. The usher will then draw up a memorandum of seizure that must be registered and transcribed with the Conservator of Mortgages/Registrar General of Mauritius. A creditor enforcing a mortgage must also register and transcribe a memorandum of charges with the Conservator of Mortgages/Registrar General of Mauritius, containing the desired conditions of sale. The property may then be seized and sold, before the Supreme Court of Mauritius, to the highest bidder.

The choice of a foreign law as the governing law of the contract will be upheld in Mauritius, provided it does not offend Mauritian public policy.

A final and conclusive judgment for a sum of money obtained against a Mauritian company in the superior courts of the United Kingdom will, upon registration under the Reciprocal Enforcement of Judgments Act 1923, be enforceable before the Supreme Court of Mauritius.

A final and conclusive judgment for a sum of money obtained against a Mauritian company in any other foreign court will be recognised and enforceable before the Supreme Court of Mauritius, without a retrial of the merits of the case, by way of exequatur proceedings under the Code de Procédure Civile, subject to certain conditions being met.

A foreign arbitral award will be recognised and enforced by the Supreme Court of Mauritius under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act 2001 (which implements the New York Convention in Mauritius), subject to certain conditions being met.

Where the security involves immovable property in Mauritius, the foreign lender will require prior approval of the Prime Minister’s office to take security over such immovable property or over shares in a company which holds immovable property.

The facility agreement will generally treat an insolvency event as an event of default and will usually include mechanisms where, upon the occurrence of such an event, the lender may have recourse to claim repayment of the loan and to enforce the security or guarantee which was provided to secure the loan.

The lender may appoint a receiver to secure all the assets provided as collateral to avoid disposal by the grantor.

In certain circumstances, a company may begin administration procedures under the Insolvency Act 2009. During the period that a company is in administration and upon the appointment of an administrator, a lender cannot enforce a charge on the property of the company, except with the written consent of the administrator or with the permission of the court and on terms that the court thinks appropriate.

This restriction, however, does not apply to a secured creditor; ie, a person who holds a charge on or over the property of the company and includes the holder of a “gage”. The secured creditor may apply to the court for an order granting it leave to enforce its security within a specified period after the company has been put into administration.

The restriction does not apply to those secured creditors who have already taken steps to enforce their rights to recover the property before the beginning of the administration of the company.

The Insolvency Act 2009 sets out the order of priority in which creditors are paid on a company’s insolvency. The order of priority is as follows:

• first, the liquidator or receiver for their fees and expenses and any indemnity to which they are entitled from the property of the company;
• second, costs of compromises by the company with its creditors under the Companies Act;
• third, payments made pari passu with first-ranking fixed and floating charges and mortgages inscribed for more than three years;
• fourth, first-ranking fixed and floating charges and mortgages inscribed for less than three years;
• fifth, other secured creditors; and
• sixth, all other unsecured creditors who have been proved in the bankruptcy or winding-up.

The Insolvency Act 2009, which is the principal legislation dealing with the insolvency of companies, sets out the typical insolvency procedures for enabling the creditors to recover their debts, which are the receivership procedure and the liquidation procedure.

Under a receivership, a receiver will be appointed by a secured creditor to take control and possession of the property in receivership (i) to protect the secured creditor’s position, and (ii) to manage or realise the asset for repayment of the debt to the secured creditor. The Insolvency Act 2009 does not provide for any prescribed period of time for the completion of the receivership process. The receivership procedure would generally take eight months to 16 months to complete, but it may take longer if the affairs of the company are more complex.

Under the liquidation process, a liquidator will be appointed to take possession of, protect, realise and distribute the assets, or the proceeds derived from the realisation of the assets. As with the receivership procedure, the Insolvency Act 2009 does not provide for any prescribed period of time for the completion of the liquidation process. The liquidation process would generally take 12 months to 18 months to complete but may take longer if the transaction is more complex.

The Insolvency Act 2009 also sets out the formal mechanism for the rescue or reorganisation of a company, which is the voluntary administration of a company.

The aim of a voluntary administration is to enable a business, property and affairs of a company to be administered in a way that (i) provides an opportunity for the company and its business to continue to exist or, should the former scenario not be possible, and (ii) provides a better return for the company’s creditors and shareholders, compared with an immediate winding-up of the company.

The administrator may be appointed by the company in administration, by a secured creditor holding a charge over the whole/substantially the whole of the company’s property, or by order of the court.

The Mauritius Companies Act 2001 further provides for other mechanisms for company rescue, which include:

• a compromise between the company and its creditors;
• amalgamation procedures; and
• a scheme of arrangement by a creditor or a shareholder in relation to the company.

Potential risk areas which the lender may face when a borrower, security provider or guarantor becomes insolvent are as follows.

Voidable Preference

A voidable preference is a transaction which involves creating a charge over the debtor’s property and incurring an obligation, and which (i) has been entered into by the company as a debtor at a time when the company is unable to pay its due debts and (ii) enables another person to receive more towards satisfaction of a debt by the company than that person would receive in the bankruptcy or liquidation. A voidable preference, which was made within two years immediately before adjudication or commencement of the winding-up, may be set aside by the court upon application by an official receiver or a liquidator making such an application.

Voidable Charge

A charge over a property or undertaking of a debtor, given within two years before the debtor’s adjudication or the commencement of the winding-up and where, immediately after the charge was given, the debtor was unable to pay its due debts, may be set aside by the court upon the application by an official receiver or a liquidator.

Energy

The government’s push for cleaner energy sources and the need to update or expand energy infrastructure have driven considerable investment in these projects. The main projects involve medium-sized to large-scale solar farms and wind farms and domestic PV installation systems.

Infrastructure

Large-scale infrastructure projects like roads, bridges and public transportation with the latest light railway system have been the main projects in this category.

Real Estate Development

Large real estate development projects, such as smart cities involving commercial complexes, residential communities, and tourism are driving projects in this specific sector.

Since the promulgation of the Public-Private Partnership Act, a series of projects have been implemented, mainly in the road infrastructure, transport and energy sectors, with the setting up of various power plants using fossil fuel and renewable sources, the development of the freeport zone and airport terminal, the setting-up of a wastewater treatment plant and other road infrastructure projects.

Project documents are not required to be governed by local law, nor are disputes required to be resolved in local courts. The choice of a foreign law, as the governing law of the contract will be upheld in Mauritius. Likewise, the choice of a foreign jurisdiction or international arbitration for settlement of disputes will be recognised.

Foreign entities (or any Mauritian company with a non-citizen of Mauritius as shareholder or ultimate beneficial owner) must seek approval of the Prime Minister’s Office if they intend to acquire immovable property within Mauritius.

Likewise, if a foreign lender intends to enforce any remedial rights on a security related to immovable property in Mauritius, leading to an eventual ownership of that property, obtaining the Prime Minister’s Office’s approval will be a prerequisite.

The ownership structure is the primary concern for a project – the type of vehicle used and how it is organised to “house” the investors and financiers. Traditionally, a private company limited by shares would be the favoured option, but other structures may be more appropriate, depending on the type of project.

Where immovable property would be owned or leased over a period by the project vehicle, approval from the Prime Minister’s Office would be required if non-citizens would be holding a direct or indirect shareholding or interest in the project company, except where certain exemptions are provided.

The financial structure would also be of relevance in determining how the project would be financed, which could involve equity, short-term and long-term loans, bonds (listed or unlisted), quasi-equity and the determination of the relevant revenue streams to service the debts. Each type of financing would require specific attention in order to comply with the regulatory environment.

The financing sources and structures can vary depending on the nature of the project, its scale, and its risk profile. The typical financing sources and structures would include:

• bank financing – with fixed or variable interest rates and repayment terms tailored to the project’s revenue generation;
• export credit agency (ECA) financing – particularly common in large infrastructure projects; and
• project bonds – generally issued by project companies to investors seeking long-term, fixed-income instruments.

Alternative sources of financing include the following.

• Private equity – private equity firms may invest directly in projects in exchange for equity ownership seeking higher returns being more actively involved in project management and decision-making.
• Public-private partnerships (PPPs) – private entities often finance or provide land for the development of a specific project. They may also design, build, operate and maintain the project over a defined period.
• Multilateral and development banks – international institutions like the World Bank, Asian Development Bank and African Development Bank provide funding and support for development projects in emerging markets, including Mauritius.
• Crowdfunding and peer-to-peer lending – while not very common for project financing in Mauritius, smaller projects might use crowdfunding or peer-to-peer lending platforms to raise capital from a large number of individual investors.

Mauritius does not have extractive natural resources, and the exportation of such resources is not an issue.

The Environment Act 2024 stands as the main legal framework governing environmental matters concerning various projects. The Environment Act repealed the Environment Protection Act 2002 and replaced it with a modern legislative framework with a view to ensuring better protection, management and conservation of the environment. The Environment Act 2024 established the National Environment and Sustainable Development Commission with a view to, inter alia, setting national objectives for environmental protection, management and conservation, and targets regarding circular economy, green economy, and sustainable consumption and production.

Additionally, an Observatoire de L’Environnement has been established as an interface with stakeholders, including the public, on environmental protection and policy evaluation. A mechanism has also been put in place to enhance the management and protection of Environmentally Sensitive Areas (ESAs), with improved co-ordination among institutions and the creation of an ESA inventory and maps. The Environment Act 2024 also ensures transparency in the Preliminary Environmental Report (PER) and Environmental Impact Assessment (EIA) processes and introduces the Strategic Environmental Assessment (SEA) framework to integrate environmental considerations into early planning stages. This ensures a holistic evaluation of cumulative impacts, taking into account socio-economic factors to protect and conserve the environment. A completion certificate will be required before operations begin, confirming that projects comply with their PER, EIA or SEA approvals. Additionally, a National Oil Spill Co-Ordination Committee has been established, as a response to the Wakashio disaster which occurred in 2020, to ensure a prompt and co-ordinated response to oil spills.