The Market: The Mauritius Bond Market is quite mature sitting at approximately $1.3B USD in locally issued bonds, and liquidity. Mauritius has been a favored offshore jurisdiction for years for Indian HNI's and corporates who operate in Africa, as well as for large global conglomorates operating in Africa. Mauritius benefits from over 100 non double taxation and free trade agreements. Mauritius has long been the favored tax shelter destination for some of the regions’ less savory characters. It is time now, however, that Mauritius is recognized for what it actually is. A truly robust market infrastructure, built on English Common Law that has an ease of doing business that makes it ideal for Ethical European and other Global investors to maximize advantage of legitimate, globally recognized legal structures, that allow for assignment of rights, title, revenue of target investments within Africa into SPV’s ideal for discretely ethical, controlled, yet transparent and liquid investment.
Market Opportunity 1.: East Africa (Kenya, Tanzania, Uganda, Ethiopia), Nigeria, South Africa. Mid Cap, debt equity, structured finance capitalizing on Mauritius' multiple FTA's, Non Double Taxation, and ease of capital flow. Mauritius offers unrestricted capital controls and accounts available for settlement in USD, EUR, GBP, AUD, NZD, CNY, YEN, ZAR, etc. Upfront fees range from $75K to $175K on such structures and 2-5% on back end. 2-3 deals per month. Placements range from $5M - $100M plus with syndication to North America, UK, EU and Asia (Singapore, SK, Japan, HK.) According to Private Equity International Magazine $285M worth of Private Equity was invested in East Africa in 2018. Our Goal is to obtain 10% of the East African PE/Debt Market in 5 years. This will be achieved by opening partner offices in countries with existing deal flow partners. Countries like Tanzania, Kenya and Uganda. An example of a deal we are operating currently with our US Broker Dealer partner: $100M raise on a US pub co., against a Nigerian Insurance conglomerate. Actual fees: 100K GBP up front and 4.5% on the back.
Market Segments: Oil & Gas, Transportation, Supply Chain & Logistics, Consumer Goods, Manufacturing, Import & Export, Minerals, Agriculture, etc.
Target Client Profile: Mid cap companies with audited financials and annual revenue starting at $20M. Typical operating history of 10 years plus, or significant market presence if less. HNI's and family offices within Africa.
Market Problem: African banks and financial institutions charge an average rate on debt starting from 18% in East Africa to 36% in Ghana. There is little liquidity for foreign investors due to strict capital controls.
Solution: Create Mauritius based SPV's which assign rights of assets or contracts to SPV's to write debt, equity or quasi equity notes to the local and international markets. Client specific, and not limited to just Mauritius. There is an increasing global market appetite for African based market opportunities in debt and equity finance and the trend is to grow. Investors from Denmark, Switzerland, UK, Gulf Countries and Asia are looking to Africa for opportunities in debt, equity, and early stage venture. Mauritius is ideally suited for African investments as it is an English common law jurisdiction with very minimal capital restrictions.
Market Opportunity 2.: OTC managed trading of digital assets, market premium on Bitcoin starts at 10% in SA, and goes as high as high as 37% reported in Zimbabwe and Nigeria. For companies using Bitcoin for trade settlement we charge managed platform fees as low as 0.27% for average trades of $100k+. HNI's and entities in jurisdictions with capital controls have increasingly turned to Bitcoin as a settlement mechanism for purchases of assets like real estate with average transaction size of $1M +. We are currently advising a client purchasing an Emaar property in Dubai with Bitcoin from South Africa. Over $1.2B worth of p2p trading of BTC in Nigeria alone per year, number 3 in the world for peer to peer trading of Bitcoin behind China and USA. In the past 2 months I have personally executed private trades over $300K. I expect 1-3 large $1M+ trades per month and 3-4 under 100K trades per month paced on current market demand with a primary focus on SA and Nigeria. While the chart below may show a lesser opportunity for private equity in West Africa, the opportunity for project finance alone in Nigeria runs well into the billions.
Market Opportunity 3.: STO's, Partly capitalizing on global hype and a general thirst for new asset classes, the Mauritius STO framework provides a surprisingly simple approach to tokenization of assets and issuance of debt or equity via tokenization. The fact of the matter is; in 2019, nearly $1B USD was raised via Security Token Offering globally according to research by Blockstate. Exactly zero STO’s were launched from Mauritius in 2019 despite existing legal framework. The global STO market is going to syndicate and grow significantly over the next 5 years to an estimated 1.8 Trillion in global funding directly by STO by 2025, and a further 10 Trillion in global tokenization, including tokenization of real assets by 2027, according to the World Economic Forum study published in 2014. Much of that funding will have it’s origination in Africa. Early market entry into the African market is not only strategically founded on published sound market data, it will be extremely logical and lucrative for the firm.
Other Opportunities: Global Syndication, and consulting.
Current IP: Deal flow, analysis, structure, assignments, note creation and underwriting, technical and public listing on Stock Exchange of Mauritius, STO and Digital Assets Framework, Tokenization of Assets. Global Network from both a client/deal and funding side, Global Syndication.
About Me: Resident of Mauritius for over 10 years, 2 children in Mauritius. Founder of Satohi Ltd, Blockchain Mauritius Foundation, and Mauritius Ethereum Foundation, Private Investor, Former CIO of NRISI Venture Fund. Extensive funding and deal network in Africa, Asia, GCC, and Europe as well as North America. Back ground in card services and payment processing. Contributed to the draft of FSC Mauritius current digital asset laws.
Seeking partnerships that allows us banking access and opportunity to scale through GCC and Africa.