Social Enterprise Law Surveys |
|
Mauritius |
|
(Africa) Firm Bowmans | |
What jurisdiction(s) do you practice in? | Mauritius |
What are the most commonly used types of for-profit corporate organizational forms in your jurisdiction (e.g., corporation, limited liability company, benefit corporation, social purpose corporation, etc.) used by Enterprises operating a trade ... | The most common for-profit organizational forms utilized in Mauritius are limited liability companies. Companies can be incorporated or registered under the Companies Act 2001 and can be either private or public. A private company is limited to 50 shareholders and cannot offer shares to the public. Companies can have a limited or unlimited life. Limited liability companies can be:
Companies limited by guarantee are usually used for non-profit purposes.
a. Enterprises that seek financing from investors and that will have multiple owners tend to form limited liability companies and limited partnerships. b. There are no specific rules governing Social Enterprises under Mauritius law and therefore there is no organizational form designed specifically for Social Enterprises. A company may be used to structure a Social Enterprise, and its governing document, which is the constitution, will set out the social objectives of the company. |
Do any of your jurisdiction’s traditional organizational forms require or permit the board or managers to consider, balance or prioritize interests other than shareholder value in decision making? What other interests, if any, are they required... | There are no such requirements in Mauritius. The directors of a company must exercise their powers honestly in good faith in the best interests of the company and for the respective purposes for which such powers are explicitly or impliedly conferred. |
Does your jurisdiction have organizational forms specifically designed for Social Enterprises? If so:a. What type(s) of organizational forms are they?b. How do they materially differ from the most closely analogous traditional organizational ... | No. there are no specific rules governing Social Enterprises under Mauritius law. The costs and timing for forming a social enterprise will be the same as for any enterprise since there are no organizational forms specifically designed for Social Enterprises in Mauritius. Companies limited by guarantees, foundations or trusts are usually used for nonprofit or charitable organization. A trust or a foundation shall be charitable where it has, as its exclusive purpose or object, one of the following purposes:
A company limited by guarantee will be considered as a charitable institution if it is approved by the Mauritius Revenue Authority as a charitable institution and its objects:
Charitable trusts, foundations and institutions are exempt from Mauritius income tax. |
Are Social Enterprises permitted to be formed and operated as Nonprofits? If so: a. Are Nonprofits that are Social Enterprises treated differently under the law as compared to Nonprofits that are not Social Enterprises, whether from a corporat... | Since there are no specific rules governing Social Enterprises under Mauritius law, we do not consider that Social Enterprises are restricted from operating as non-profits. Non-profits that are Social Enterprises will also therefore not be treated any differently from Nonprofits with other objectives. |
Does your jurisdiction allow for worker-owned Enterprises, such as cooperatives? If so, please describe any material benefits of, and/or restrictions on, using such forms. | There is no specific structure designed for worker-owned Enterprises only. The constitutive documents of the entity (such as the constitution of a company) may provide that a shareholder must be an employee of the company. |
Are there unique reporting requirements for Social Enterprises? If there are, please describe them. Please also discuss what government bodies Social Enterprises are required to report to. | No. |
In your jurisdiction, has case law and jurisprudence evolved to address Social Enterprises? If there is meaningful jurisprudence around Social Enterprises, please provide some brief examples. | No. |
Does your jurisdiction have any ESG requirements for Enterprises generally? If it does, please describe. | The National Code of Corporate Governance (the Code) issued in 2016 provides a set of principles and recommendations aimed at improving governance practices in businesses in the country. The Code is binding on every public interest entity (PIE), which includes all listed companies and companies whose turnover exceed USD 12.5million or have an asset base of more than USD 25 million. But it leaves it to the boards of such businesses to decide on how to apply each principle. Although it applies to PIEs, the Code also aims at encouraging all other companies to give due consideration to its application. One of the principles under the Code is that the board of the company should present a fair, balanced and understandable assessment of the organisation’s financial, environmental, social and governance position, performance and outlook in its annual report. Companies are at liberty to determine how adherence to these principles is demonstrated. In the real estate sector, the Mauritius Investment Promotion (Smart City Scheme) Regulations (the Smart City Regulations) were issued in 2015, setting out conditions for companies intending to develop “Smart Cities”. These are real estate developments comprising a mixed use of office, business, residential and entertainment components, focusing on innovation, sustainability, efficiency and quality of life. Amongst its objectives, a Smart City is meant to promote:
A Smart City project requires both an Environmental Impact Assessment (EIA) and a Social Impact Assessment (SIA) to be carried out providing an appraisal of the impact on the day-to-day quality of life of the immediate communities whose environment is affected by the proposed project. Similarly, under the Property Development Scheme (PDS), which is a scheme for the development of residential properties of high standing and ancillary leisure and management services, an applicant for a PDS certificate must submit, amongst other things,
A PDS company is also required to set up a PDS social fund to implement the social programme identified in the social needs analysis and provide for social amenities, community development and other facilities for the neighbouring community. |
Does your jurisdiction have any ESG requirements specifically for Social Enterprises? If it does, please describe. | No. |
Does your jurisdiction have any ESG requirements for investors? If it does, please describe. | No. |
Are any major investor classes (e.g., pension funds, mutual funds, etc.) required to look at ESG issues when making investment decisions in your jurisdiction? a. If they are, please describe the requirements.b. If they are not, are they permi... | No, there is no general legal requirement on major investors to consider ESG issues when making investment decisions in Mauritius except in the context of specific development schemes for smart cities and PDS where an environmental impact assessment and/or a social impact assessment is required. |
What kinds of philanthropic funding do Social Enterprises in your jurisdiction commonly receive (e.g., grants, charitable investment, traditional investment)? | There is a Corporate Social Responsibility (CSR) system whereby profitable domestic companies have the obligation to allocate 2% of their book profits to CSR activities. CSR programme is defined in Section 2 of the Mauritius Income Tax Act 1995 as a programme having as its main objective the alleviation of poverty, the relief of sickness or disability, the advancement of education of vulnerable persons or the promotion of any other public object beneficial to the Mauritian Community. The CSR contributions are used to support duly approved Non-Governmental Organisations/ bodies engaged in social welfare, sports, environment protection and various other areas. |
How prevalent, if at all, are new for-profit impact investments in your jurisdiction (e.g. traditional instruments with impact terms, new investment instruments, aggregation with philanthropic capital, community based funding, etc.)? | Mauritius does not regulate impact investments. We have recently seen a rise in investors imposing specific requirements on impact investment strategies to be included in the constitutive documents of their investee company. A common form of impact investing in Mauritius is through the provision of private equity capital in unlisted companies, typically in small and medium enterprises (SMEs). Private investments in SMEs attempt to achieve the greatest social impact on local economies with a backbone driving entrepreneurship, economic growth and job creation. |
What are the types of government funding and support available to Social Enterprises, if any, available in your jurisdiction (e.g., grants, investments, bonds, and guarantees)? a. How difficult is it for Social Enterprises to obtain government... | There is no special government funding specifically available to Social Enterprises. |
Are there any companies that are formed as a Social Enterprise listed on your jurisdiction’s leading securities exchange(s)? | No, there are currently no companies that are formed as Social Enterprises that are listed on the stock exchange of Mauritius. |
To what extent are publicly traded Enterprises required to disclose ESG related factors in annual reports/public filings in your jurisdiction. | Yes, the board of a listed company must present a fair, balanced and understandable assessment of the company’s financial, environmental, social and governance position, performance and outlook in its annual report. |
How prevalent, if at all, are impact bonds in your jurisdiction? | Impact bonds are not prevalent as Mauritius does not regulate impact bonds. The Mauritius Financial Services Commission has signed the Marrakech Pledge, a coalition of African capital market regulators and exchanges committed to acting collectively in favor of green finance, in 2019 and has reiterated its wish to have Mauritius develop a platform for the raising of green finance for African businesses. Also, the Securities Act 2005 (SA) have been amended in 2019 to include green bonds in the definition of securities. All the provisions in the SA relating to the offering and management of securities will also apply to green bonds. |
In your jurisdiction, are there any restrictions on foreign investments or donations that are unique to Social Enterprises (whether incorporated as for profit entities or as Nonprofits)? | No. |
Is “crowdfunding” legal in your jurisdiction? Are there rules under applicable securities laws that make it easier for smaller businesses or Social Enterprises to take money from investors that are not sophisticated/accredited/qualified under a... | Crowdfunding is legal in Mauritius. A license is required from the Financial Services Commission for an entity to conduct crowdfunding activities. The Mauritius Financial Services Commission has issued a Consultation Paper establishing a comprehensive regulatory framework for investment-based crowdfunding and has sought the views of the industry, its stakeholders and the public on the Consultation Paper. While crowdfunding is a regulated activity, there is no regulation specific to crowdfunding for Social Enterprises. |
Are there any tax exemptions that are uniquely available for Social Enterprises? a. Please describe any tax exemptions that are available and whether they are partial or full.b. Are they dependent on the Social Enterprise utilized using a spe... | There are no fiscal incentives or other benefits available specifically for Social Enterprises in Mauritius. Charitable trusts, foundations and institutions are exempt from Mauritius income tax. Interest from debentures, bonds or sukuks issued by a company to finance renewable energy projects, the issue of which has been approved by the Mauritius Revenue Authority is exempt from Mauritius tax. |
Are individuals or other organizations able to provide tax deductible donations to for-profit Social Enterprises? If they are, please describe any restrictions applicable to tax deductible donations? | No. |
Are there any other tax benefits uniquely available for Social Enterprises? (e.g. deferrals, favorable tax rates, business deductions, etc.) | No. |
Does your jurisdiction provide for reciprocal recognition of tax-exempt status that has been granted under the law of any other jurisdictions? | No. |
Does your jurisdiction have Regulatory Sandboxes or similar policy frameworks for Social Enterprises? If it does, please describe. | The Mauritius Economic Development Board has the power to issue a regulatory sandbox license to eligible companies conducting business activities for innovative projects for which there is no (or an inadequate) legal or regulatory framework in Mauritius. There are, however, no regulatory sandboxes specifically for Social Enterprises at present. |
What government operational support, resources, training or services, are available for small businesses or Social Enterprises? | The government has implemented the Wage Assistance Scheme to assist employers by providing a wage subsidy through the Mauritius Revenue Authority (MRA) during the COVID-19 lockdown period. The government of Mauritius has also established the COVID-19 Solidarity Fund which aims to strengthen the preparedness and response of the nation to face COVID-19 type situations. The key objectives of the COVID-19 Solidarity Fund are to contribute to the financing of projects, programs and schemes related to the COVID-19 and other related public health issues, and to provide financial support to citizens and organizations affected by the COVID-19 virus. Public enterprises, statutory bodies, private sector, national and international organisations have been encouraged to contribute to the COVID-19 Solidarity Fund. |
Are there different compliance requirements for different types of Social Enterprises than for traditional Enterprises? Please provide examples if there are. | No, the laws do not provide for a specific framework for Social Enterprises and there are therefore no specific compliance requirements for such enterprises. |
Is there a dedicated government agency or department that oversees Social Enterprises? If there is, please describe its mandate and effectiveness. | No. |
Is there a different bankruptcy system available for Social Enterprises? | No. |
What are the average time and filing fees to form an Enterprise in your jurisdiction? | Domestic companies are incorporated within 1 to 2 business days, whilst the incorporation of a company holding a global business licence normally takes between 10 and 14 business days. A domestic limited partnership and foundation may be set up and registered within 3 business days whereas a limited partnership and foundation holding a global business licence may take between business 10 and 14 days. The fees for the incorporation of:
(this excludes the licence costs for carrying out a regulated financial services activity) |
What government or third-party certifications or accreditations, if any, are available for Social Enterprises that allow for access to benefits e.g. funding, beneficial tax status, etc.? Please provide examples and briefly describe them as well... | There is no government or third-party certifications or accreditations available for Social Enterprises. Charitable institutions must be approved by the Mauritius Revenue Authority for them to be exempt from tax. |
Please describe whether, in your opinion, startups and other entrepreneurial Enterprises generally can easily form and flourish in your jurisdiction. | Yes, setting up an entity is easy in Mauritius. There is a number of structures available to choose from (such as companies, limited partnerships, trusts, foundations) and incorporation processes are fast, cheap and simple. Additional licensing is required if the entity will be conducting financial services such as crowdfunding. |
Please describe whether, in your opinion, Social Enterprises, in particular, can easily form and flourish in your jurisdiction. | Yes, Mauritius is generally known for the ease of setting up a business, business facilitation framework and efficient fiscal regime. The process will be similar to the setting up of any other entity. The constitutive documents of the entity would provide for the social objectives. In the case of a company, its constitution that sets out its social objectives must be filed with the Registrar of Companies together with a legal certificate which states that the constitution complies with the laws of Mauritius. |
Please describe whether in your opinion there are any laws that are obstructive to the formation of Social Enterprises (i.e. that actively disfavor or penalize, or otherwise discourage their formation) in your jurisdiction (for example, are Soc... | No. It is however recommended that the country creates a comprehensive policy for social enterprises to encourage such types of investments. Despite the CSR levy, Social Enterprises struggle to raise funding for growth. |
In your jurisdiction, are there any major fraud concerns or defects due to corruption or fraud that should be addressed? If there are, please briefly discuss the concerns or defects. | No. Moreover the country is currently in the process of putting a place a risk-based approach for supervision of its non-profit organization sector to prevent abuse for terrorist financing purposes. The fact that no such framework currently exists has been picked up by the Financial Action Task Force (FATF) prompting the country to implement adequate regulation of this sector. |
What changes to the law do you think would be most beneficial to enabling Social Enterprises to flourish in your jurisdiction? | It is important that social enterprises and/or social investment first be defined in the law and that regulations and policy guidance be provided with regards to the priority areas for investment and development. There is a need for a comprehensive policy decision, followed by regulatory intervention in relation to social enterprises to encourage the development of social and environmental responsibilities. |
What changes to the law do you think would be most beneficial to enhancing the social and environmental responsibility of Enterprises generally (whether or not Social Enterprises)? | Businesses should be provided with a comprehensive legal framework to include environmental and social considerations in their operations. There is a need for clear standards and incentives to achieve identified milestones, whether in terms of business facilitation, access to finance or fiscal incentives and rebates. We consider that private enterprises should be allowed to set up their own corporate social responsibility programs (as opposed to being compelled to pay CSR as a levy) so that they have a greater incentive to incorporate the social and environmental responsibilities within their business operations. |
Is there anything else you would like to add or guidance you would like to provide? Are there any questions we should have asked but did not? | Many businesses opt to include ESG policies in their constitutive documents even if there is no consolidated approach to regulating ESG or social enterprises in Mauritius. ESG is common in structures in which development financial institutions or international donor organizations invest or provide funding. It is usually a condition of such funding or investment that ESG policies be included as part of the investment mandate. |
Social Enterprise Law Surveys
Mauritius
The most common for-profit organizational forms utilized in Mauritius are limited liability companies. Companies can be incorporated or registered under the Companies Act 2001 and can be either private or public. A private company is limited to 50 shareholders and cannot offer shares to the public. Companies can have a limited or unlimited life.
Limited liability companies can be:
- Limited by shares. The liability of its members is limited to any amount unpaid on the shares held by the shareholder.
- Limited by guarantee. The liability of its members is limited to the amount that the members undertake to contribute to the assets of the company in the event of it being wound up.
- Limited by shares and by guarantee.
Companies limited by guarantee are usually used for non-profit purposes.
a. Enterprises that seek financing from investors and that will have multiple owners tend to form limited liability companies and limited partnerships.
b. There are no specific rules governing Social Enterprises under Mauritius law and therefore there is no organizational form designed specifically for Social Enterprises. A company may be used to structure a Social Enterprise, and its governing document, which is the constitution, will set out the social objectives of the company.
There are no such requirements in Mauritius. The directors of a company must exercise their powers honestly in good faith in the best interests of the company and for the respective purposes for which such powers are explicitly or impliedly conferred.
No. there are no specific rules governing Social Enterprises under Mauritius law. The costs and timing for forming a social enterprise will be the same as for any enterprise since there are no organizational forms specifically designed for Social Enterprises in Mauritius.
Companies limited by guarantees, foundations or trusts are usually used for nonprofit or charitable organization.
A trust or a foundation shall be charitable where it has, as its exclusive purpose or object, one of the following purposes:
- The relief of poverty.
- The advancement of education.
- The advancement of religion.
- The protection of the environment.
- The advancement of human rights and fundamental freedoms.
- Any other purpose beneficial to the public in general.
A company limited by guarantee will be considered as a charitable institution if it is approved by the Mauritius Revenue Authority as a charitable institution and its objects:
- are of a public character,
- do not yield any profits to its members; and
- are exclusive:
- the advancement of religion;
- the advancement of education;
- the relief of poverty, sickness and disability;
- the protection of the environment;
- the advancement of human rights and fundamental freedoms;
- the promotion of any other public object beneficial to the community;
- are to be carried out in Mauritius or elsewhere.
Charitable trusts, foundations and institutions are exempt from Mauritius income tax.
Since there are no specific rules governing Social Enterprises under Mauritius law, we do not consider that Social Enterprises are restricted from operating as non-profits. Non-profits that are Social Enterprises will also therefore not be treated any differently from Nonprofits with other objectives.
There is no specific structure designed for worker-owned Enterprises only. The constitutive documents of the entity (such as the constitution of a company) may provide that a shareholder must be an employee of the company.
No.
No.
The National Code of Corporate Governance (the Code) issued in 2016 provides a set of principles and recommendations aimed at improving governance practices in businesses in the country. The Code is binding on every public interest entity (PIE), which includes all listed companies and companies whose turnover exceed USD 12.5million or have an asset base of more than USD 25 million.
But it leaves it to the boards of such businesses to decide on how to apply each principle. Although it applies to PIEs, the Code also aims at encouraging all other companies to give due consideration to its application.
One of the principles under the Code is that the board of the company should present a fair, balanced and understandable assessment of the organisation’s financial, environmental, social and governance position, performance and outlook in its annual report. Companies are at liberty to determine how adherence to these principles is demonstrated.
In the real estate sector, the Mauritius Investment Promotion (Smart City Scheme) Regulations (the Smart City Regulations) were issued in 2015, setting out conditions for companies intending to develop “Smart Cities”. These are real estate developments comprising a mixed use of office, business, residential and entertainment components, focusing on innovation, sustainability, efficiency and quality of life. Amongst its objectives, a Smart City is meant to promote:
- proper management, development and conservation of natural and man-made resources to promote the social and economic welfare of the community and a better environment; and
- ecologically sustainable development
A Smart City project requires both an Environmental Impact Assessment (EIA) and a Social Impact Assessment (SIA) to be carried out providing an appraisal of the impact on the day-to-day quality of life of the immediate communities whose environment is affected by the proposed project.
Similarly, under the Property Development Scheme (PDS), which is a scheme for the development of residential properties of high standing and ancillary leisure and management services, an applicant for a PDS certificate must submit, amongst other things,
- a social impact assessment to identify the impact of the PDS project on its neighbouring community together with a written undertaking that the benefits of the PDS Project shall accrue to the neighbouring community and to small entrepreneurs generally in terms of employment and business opportunities;
- an assessment of the social needs of the neighbouring community of the PDS project in terms of social amenities, community development and other facilities together with a description of the social needs to be met by the applicant as well as the costs of and the time frame for meeting these needs.
A PDS company is also required to set up a PDS social fund to implement the social programme identified in the social needs analysis and provide for social amenities, community development and other facilities for the neighbouring community.
No.
No.
No, there is no general legal requirement on major investors to consider ESG issues when making investment decisions in Mauritius except in the context of specific development schemes for smart cities and PDS where an environmental impact assessment and/or a social impact assessment is required.
There is a Corporate Social Responsibility (CSR) system whereby profitable domestic companies have the obligation to allocate 2% of their book profits to CSR activities. CSR programme is defined in Section 2 of the Mauritius Income Tax Act 1995 as a programme having as its main objective the alleviation of poverty, the relief of sickness or disability, the advancement of education of vulnerable persons or the promotion of any other public object beneficial to the Mauritian Community.
The CSR contributions are used to support duly approved Non-Governmental Organisations/ bodies engaged in social welfare, sports, environment protection and various other areas.
Mauritius does not regulate impact investments.
We have recently seen a rise in investors imposing specific requirements on impact investment strategies to be included in the constitutive documents of their investee company. A common form of impact investing in Mauritius is through the provision of private equity capital in unlisted companies, typically in small and medium enterprises (SMEs). Private investments in SMEs attempt to achieve the greatest social impact on local economies with a backbone driving entrepreneurship, economic growth and job creation.
There is no special government funding specifically available to Social Enterprises.
No, there are currently no companies that are formed as Social Enterprises that are listed on the stock exchange of Mauritius.
Yes, the board of a listed company must present a fair, balanced and understandable assessment of the company’s financial, environmental, social and governance position, performance and outlook in its annual report.
Impact bonds are not prevalent as Mauritius does not regulate impact bonds.
The Mauritius Financial Services Commission has signed the Marrakech Pledge, a coalition of African capital market regulators and exchanges committed to acting collectively in favor of green finance, in 2019 and has reiterated its wish to have Mauritius develop a platform for the raising of green finance for African businesses.
Also, the Securities Act 2005 (SA) have been amended in 2019 to include green bonds in the definition of securities. All the provisions in the SA relating to the offering and management of securities will also apply to green bonds.
No.
Crowdfunding is legal in Mauritius. A license is required from the Financial Services Commission for an entity to conduct crowdfunding activities.
The Mauritius Financial Services Commission has issued a Consultation Paper establishing a comprehensive regulatory framework for investment-based crowdfunding and has sought the views of the industry, its stakeholders and the public on the Consultation Paper.
While crowdfunding is a regulated activity, there is no regulation specific to crowdfunding for Social Enterprises.
There are no fiscal incentives or other benefits available specifically for Social Enterprises in Mauritius. Charitable trusts, foundations and institutions are exempt from Mauritius income tax.
Interest from debentures, bonds or sukuks issued by a company to finance renewable energy projects, the issue of which has been approved by the Mauritius Revenue Authority is exempt from Mauritius tax.
No.
No.
No.
The Mauritius Economic Development Board has the power to issue a regulatory sandbox license to eligible companies conducting business activities for innovative projects for which there is no (or an inadequate) legal or regulatory framework in Mauritius.
There are, however, no regulatory sandboxes specifically for Social Enterprises at present.
The government has implemented the Wage Assistance Scheme to assist employers by providing a wage subsidy through the Mauritius Revenue Authority (MRA) during the COVID-19 lockdown period.
The government of Mauritius has also established the COVID-19 Solidarity Fund which aims to strengthen the preparedness and response of the nation to face COVID-19 type situations. The key objectives of the COVID-19 Solidarity Fund are to contribute to the financing of projects, programs and schemes related to the COVID-19 and other related public health issues, and to provide financial support to citizens and organizations affected by the COVID-19 virus. Public enterprises, statutory bodies, private sector, national and international organisations have been encouraged to contribute to the COVID-19 Solidarity Fund.
No, the laws do not provide for a specific framework for Social Enterprises and there are therefore no specific compliance requirements for such enterprises.
No.
No.
Domestic companies are incorporated within 1 to 2 business days, whilst the incorporation of a company holding a global business licence normally takes between 10 and 14 business days.
A domestic limited partnership and foundation may be set up and registered within 3 business days whereas a limited partnership and foundation holding a global business licence may take between business 10 and 14 days.
The fees for the incorporation of:
- a private company is approximately USD 85;
- a public company is approximately USD 385;
- limited partnership is approximately USD 257;
- foundation is approximately USD 257.
(this excludes the licence costs for carrying out a regulated financial services activity)
There is no government or third-party certifications or accreditations available for Social Enterprises. Charitable institutions must be approved by the Mauritius Revenue Authority for them to be exempt from tax.
Yes, setting up an entity is easy in Mauritius. There is a number of structures available to choose from (such as companies, limited partnerships, trusts, foundations) and incorporation processes are fast, cheap and simple. Additional licensing is required if the entity will be conducting financial services such as crowdfunding.
Yes, Mauritius is generally known for the ease of setting up a business, business facilitation framework and efficient fiscal regime. The process will be similar to the setting up of any other entity. The constitutive documents of the entity would provide for the social objectives. In the case of a company, its constitution that sets out its social objectives must be filed with the Registrar of Companies together with a legal certificate which states that the constitution complies with the laws of Mauritius.
No. It is however recommended that the country creates a comprehensive policy for social enterprises to encourage such types of investments. Despite the CSR levy, Social Enterprises struggle to raise funding for growth.
No. Moreover the country is currently in the process of putting a place a risk-based approach for supervision of its non-profit organization sector to prevent abuse for terrorist financing purposes. The fact that no such framework currently exists has been picked up by the Financial Action Task Force (FATF) prompting the country to implement adequate regulation of this sector.
It is important that social enterprises and/or social investment first be defined in the law and that regulations and policy guidance be provided with regards to the priority areas for investment and development.
There is a need for a comprehensive policy decision, followed by regulatory intervention in relation to social enterprises to encourage the development of social and environmental responsibilities.
Businesses should be provided with a comprehensive legal framework to include environmental and social considerations in their operations. There is a need for clear standards and incentives to achieve identified milestones, whether in terms of business facilitation, access to finance or fiscal incentives and rebates.
We consider that private enterprises should be allowed to set up their own corporate social responsibility programs (as opposed to being compelled to pay CSR as a levy) so that they have a greater incentive to incorporate the social and environmental responsibilities within their business operations.
Many businesses opt to include ESG policies in their constitutive documents even if there is no consolidated approach to regulating ESG or social enterprises in Mauritius. ESG is common in structures in which development financial institutions or international donor organizations invest or provide funding. It is usually a condition of such funding or investment that ESG policies be included as part of the investment mandate.