Stephen Jennings, Founder & CEO, Rendeavour

“Mauritius must strengthen its judiciary and services to stay competitive”

• Many African countries are developing Special Economic Zones. It’s only a matter of time before they establish IFCs or offshore banking zones.
• There are opportunities for Mauritius to invest, but also significant challenges.
• Some companies are already redomiciling from Mauritius back to Kenya.

Stephen Jennings, Founder and CEO of Rendeavour, shared his perspective on the evolving landscape of International Financial Centres (IFCs) during the BLC-ALN conference on investing in East Africa, held in Mauritius. In this interview with BIZWEEK, he discusses the growing competition in the IFC space, driven by the development of Special Economic Zones (SEZs) across African countries, and the implications for Mauritius.

Stephen Jennings also highlights the strong interest from Mauritius-based investors, noting their seriousness and engagement in exploring opportunities in the region. He observes that many of these investors have already achieved success, and are actively seeking ways to expand their reach. 

During the panel discussion, you mentioned a potential risk for the Mauritian IFC, with growing competitors. Can you please elaborate?

The point I made during the panel was about the growing trend across Africa where many countries are developing Special Economic Zones (SEZs) or Free Trade Zones. These are proving to be highly successful in attracting investment and fostering growth. It’s only a matter of time before these countries start incorporating International Financial Centres (IFCs) or offshore banking zones into their economic frameworks.

This is a natural evolution, and while it creates opportunities for Mauritius to invest in these markets, it also introduces challenges. For instance, some companies are already redomiciling from Mauritius back to Kenya. This is a clear signal that competition is intensifying, and Mauritius needs to stay ahead by constantly improving its offering.

Are there other African countries which may be interesting IFCs?

Nigeria will undoubtedly consider this path at some point, and Kenya is already exploring it. Tanzania might also enter the race. These countries are closely studying the Dubai-UAE model, which has successfully combined SEZs with a robust financial services industry. What’s happening now is that they’re starting with SEZs as the foundation, but once these zones are established, it’s logical for them to think about adding financial services to their portfolios. The momentum is there, and this is a growing trend.

We’ve been hearing a lot about Rwanda positioning itself as an IFC. What is your assessment?

My assessment is that it’s a very small country. I think it’s going to be hard, given the size and the style of government, to build a really large financial services industry there.

Mauritius has a lot of serious players who are engaged, and they want to invest in East Africa

Is South Africa in the game?

They’re in the game, but I don’t think they are thinking strategically. I don’t think the regulators are thinking strategically about what they call Africa. They call the rest of the continent Africa. I think there’s an opportunity within the continent outside of South Africa for someone to build a really big financial services hub. It’s a very open space, and I don’t think anyone’s grabbed that space yet, but it’s a matter of time before they do.

How do you see Mauritius progressing in this new IFC ecosystem?

I think it will be part of the game, but there will be more competition and more choice. That will put pressure on Mauritius to continue to improve the quality of services, the quality of the judiciary. Mauritius needs to be more competitive to be able to compete with major offshore financial centres.

Can you elaborate on that?

The judicial system of Mauritius needs to be faster. The quality of services probably needs to be a little bit higher. Mauritius has had an advantage, but there’s going to be more competition going forward. I’m sure the island will evolve and develop.

What are your main takeaways from the BLC-ALN conference on Investing in East Africa?

There’s a tremendous amount of interest in Mauritius in investing in the region, particularly in East Africa. There are serious investors here. There are investors who have already had quite a lot of success, and there are other major groups, here, looking at that success and looking at how they can learn from it. The whole region is integrating. Mauritius is part of that story.

What does East Africa have to offer to the world?

The world is short of labour, and some of the best human capital is in East Africa, particularly Kenya. We’re seeing explosive growth in industries like BPO, call centres… We have Chinese manufacturing or other labour-intensive manufacturing that’s moving into the region, and we have resources, the infrastructure, the large gas projects in Tanzania… 

Kenya is one of the best countries in the world for renewable energy, which is very important for data centres and AI. So, there are certain things that Africa has that the world needs, and it needs them in big size. As the region develops, as there’s more stability, you’re going to see this integration between supply and demand between Africa and the rest of the world.

From your perspective, what can Mauritius offer East Africa?

Mauritius is a model of long-term sustained transformation. You are 30 years ahead of the rest of the continent. So, the continent can learn that, if you manage your affairs well over a long period of time – not perfectly, but well –, if you keep developing, you become a middle-income country. That’s very inspirational. It’s a very strong role model for the rest of the region.

Was there something in particular from this conference that you are bringing home?

The level of investors’ interest is high. In a lot of African conferences, there are a lot of consultants and advisors, and there’s not much real money in serious investment. Mauritius has a lot of serious players who are engaged, and they want to invest. It’s the main takeaway.