Freeport and Logistics in Mauritius

Mauritius established its Freeport in 1992 to transform the island into a leading regional trading and logistics hub. Initially, the Freeport offered modest facilities with 5,000 square meters of bare warehouse space for dry goods. Despite its small beginnings, it managed to handle MUR 715 million in trade, with a volume of 20,000 tons. Over the years, the Freeport has grown significantly, encompassing over 500,000 square meters of declared Freeport zones, equipped with advanced logistics infrastructure, including custom-built warehouses, cold storage facilities, processing units, open-air storage, and integrated office spaces.

The government’s vision is to establish Mauritius as the largest and most competitive logistics centre in the Indian Ocean, providing Freeport operators with comprehensive supply chain solutions that meet international standards. Strategically located, Mauritius is well-positioned to become a key player in the global economic landscape, serving as an ideal logistics and value-addition platform for Africa, Europe, and Asia.

Key Highlights:

• Leading Position: Ranked No. 1 in Africa and among the top 10 globally.
• Extensive Infrastructure: The total declared Freeport land area is 80 hectares, with 550,000 square meters dedicated to Freeport infrastructure.
• Strategic Locations: Freeport zones are strategically located near the port and airport, in the Riche Terre Business Industrial Park and Jin Fei.
• Significant Trade Volume: Handles 261,518 tons of trade, valued at MUR 36.4 million.
• Diverse Operations: 268 registered Freeport operators, with ten third-party Freeport developers and three private Freeport developers, employing around 4,000 people.

Freeport Operators and Their Activities

Freeport operators in Mauritius are authorized to engage in a wide range of activities, including:

• Warehousing and Storage: Storing goods in specialized facilities.
• Breaking Bulk: Handling and redistributing large shipments.
• Sorting, Grading, and Cleaning: Preparing goods for export or re-export.
• Light Assembly and Minor Processing: Conducting basic assembly and processing tasks.
• Shipbuilding and Repairs: Maintaining ships, aircraft, and heavy-duty equipment.
• Specialized Storage: Operating vaults for valuable items such as precious metals, works of art, and antiques.
• Export and Re-export Services: Focusing on airport and seaport-based activities.
• Minting and Refining: Engaging in the minting and refining of precious metals.

Third-Party and Private Freeport Developers

• Third-Party Freeport Developers: These entities build, develop, and manage infrastructure such as warehouses, cold storage, offices, and processing units for rental to other Freeport operators. They can also provide logistics services and marketing activities and host exhibitions, trade fairs, and other events.
• Private Freeport Developers: These developers focus on creating and managing their own infrastructure for their logistics services, marketing activities, and Freeport operations. They have the autonomy to build facilities tailored to their specific needs.

Incentives in the Mauritius Freeport

Companies operating within the Mauritius Freeport benefit from various fiscal and non-fiscal incentives, including:

• Duty-Free and VAT-Free Importation: Goods and equipment brought into Freeport zones are exempt from duties and VAT.
• Reduced Corporate Tax: A corporate tax rate of just 3%.
• Full Foreign Ownership: Companies can be 100% foreign-owned.
• Reduced Port Handling Charges: Preferential rates for Freeport cargo intended for re-export.
• Tax Holidays: New Freeport operators or private developers investing at least MUR 50 million can enjoy an 8-year income tax holiday, subject to meeting prescribed substance requirements.
• Extended Schemes: The Freight Rebate, Trade Promotion and Marketing, and Export Credit Guarantee schemes have been extended until June 2025.

Specialized Activities and Guidelines

• Vault Services: Freeport operators can offer secure storage for valuable items, adding a layer of specialized services to attract investors.
• Minting and Refining of Precious Metals: Guidelines are available for promoters interested in conducting minting and refining activities within Freeport zones, ensuring compliance with the fiscal regime and customs procedures.

Mauritius continues to enhance its Freeport and logistics capabilities, aiming to attract global investors and position itself as a pivotal logistics hub in the region.

Disclaimer:

The information provided in this article is for general informational purposes only. While efforts have been made to ensure the accuracy and reliability of the information, Mauritius.com makes no guarantees as to its completeness or accuracy.