Op-Ed by Aslam Taher, Head of Wholesale Banking, Absa Mauritius
The next surge of capital into Africa will not arrive by accident. It will move through trusted gateways that combine legal certainty, market access and execution depth. Mauritius has been building precisely that proposition over the past three decades, positioning its International Financial Centre (IFC) as a leading hub for Africa-focused funds and sustainable finance.
Today, Mauritius is home to more than 450 private equity funds investing across the continent, with nearly USD 40 billion already structured through its IFC. This is not a coincidence. It reflects the fact that investors prefer platforms where cross-border rules are clear, enforcement is predictable, and capital can move freely.
One of the strongest differentiators of the Mauritius IFC today is its growing reputation as an ESG and impact investment hub for Africa. The country’s regulators and market institutions are actively aligning with global standards on sustainability, disclosure and governance. This shift resonates with the priorities of long-term investment fund managers looking to finance renewable energy, sustainable agriculture, digital infrastructure and food security projects that deliver both returns and measurable impact. In 2025, Absa Bank Mauritius secured a USD 75 million funding line for sustainable finance from Proparco, a development finance institution supporting private investment in fast-growing markets. The funds will be allocated to climate co-benefit projects, including large-scale solar energy developments, certified green buildings and innovative waste-to-resource initiatives.
The Mauritius IFC has consistently innovated its fund structures to attract international investors. Among its most notable offerings is the Variable Capital Company (VCC) framework, which provides fund managers with flexibility in structuring sub-funds, ring-fencing liabilities, and scaling operations. The VCC model has become particularly attractive for private equity, venture capital and impact funds targeting Africa. Such structures give Mauritius a comparative advantage over other jurisdictions, especially for fund managers seeking a cost-effective, credible and investor-friendly base to channel capital into African opportunities.
Mauritius’ role as a financial hub is reinforced by its status as host to key multilateral and development finance institutions (DFI), which use Mauritius as a strategic base to strengthen financing capacity across the continent. The presence of these institutions signals confidence in Mauritius as a jurisdiction, while also giving investors access to trusted co-financing partners for their African strategies.
Mauritius also stands out for its strong network of bilateral agreements, DTAAs and IPPAs with African and major international partners.
It is the only African country with a trade pact in force with China and the first African partner to sign India’s Comprehensive Economic Cooperation and Partnership Agreement (CECPA). Together, these corridors anchor Mauritius as a bridge that links Asian capital to African opportunity. This web of agreements makes it easier for investors to structure cross-border transactions, repatriate capital and mitigate risks in complex jurisdictions.
Unlike many African markets, Mauritius imposes no exchange controls, enabling the free flow of capital, reducing friction for investors deploying capital across multiple jurisdictions. This efficiency strengthens its position as the most reliable entry point for funds targeting Africa.
With a Pan-African footprint and international offices in key hubs such as Beijing, London and New York, Absa Bank Mauritius can provide the financing tools to help funds deploy capital faster, manage liquidity and deliver stronger outcomes for investors. Absa is at the forefront of this evolution with a comprehensive suite of fund financing solutions designed to support funds across their lifecycle.
At the outset, during the capital raise period, Absa provides facilities to fund managers, known as GP (General Partner) lines that allow them to meet their own commitments alongside investors. In the investment period, Absa offers subscription line facilities which act as short-term bridge loans, giving funds immediate access to liquidity rather than waiting for investor capital to be drawn. The result is quicker deal execution, smoother working capital management, and greater flexibility, all of which enhance performance and investor returns. As funds move towards the realisation phase, Absa provides net asset value (NAV) facilities secured against the fund’s portfolio. These allow managers to return capital to investors earlier, finance follow-on investments or manage roll-overs into new funds.
Alongside financing solutions, Absa also provides a robust custody offering that supports funds in managing their investments securely and efficiently. Through our custody platform, funds can benefit from safekeeping of assets, efficient settlement, and comprehensive reporting. Together, these solutions ensure that Mauritius-domiciled funds benefit from greater flexibility, efficiency and resilience in their operations.
By partnering with Absa, investment managers not only gain access to capital but also on-the-ground expertise across Africa to transform commitments into sustainable growth stories, a reflection of how we are invested in your stories.
