Mauritius: A Growing Hub for Elite Mobility and Investment Citizenship

Kristin Surak, an associate professor of political sociology at the London School of Economics, recently spent two weeks in Mauritius to investigate the dynamics of elite mobility. During her visit, she noted that the island is increasingly becoming a sought-after residence.

Mauritius is often perceived as a desirable destination for investment and residency.

However, how does this idyllic locale fit into the global marketplace for citizenship and investment residency?

There are two primary pathways: citizenship and residency. Citizenship is granting an individual full membership in the state, providing a deeper connection to the country, whereas residency pertaining merely to where one lives and does not confer rights to descendants.

There are significant implications associated with both citizenship and residency.

Currently, about 20 countries have laws governing citizenship by investment, yet only ten actually operate programs that naturalize approximately 100 individuals annually.

Mauritius, which established a law for citizenship by investment in 1999, has yet to implement the program effectively.

In contrast, five Caribbean nations, all former British colonies, have fully operational programs.

Turkey stood out as a major player, accounting for half of the global sales of citizenship, due in part to the increasing demand for visa-free access to the European Union (EU).

For example, a Pakistani technology engineer relocating to Dubai for work is facing challenges in acquiring citizenship in the EU.

As a Pakistani citizen, their visa-free travel options are limited to just 40 countries, complicating international business operations.

Consequently, access to the EU is highly attractive. Although Turkey does not provide EU visa-free access, its citizenship was quite affordable for a time, allowing individuals to purchase a home in Istanbul to gain citizenship.

In the realm of citizenship, Mauritius remains inactive. The stakes are significantly higher when it comes to citizenship: it confers permanent status that is difficult to revoke, with generational impacts as children inherit this status. Thus, the Mauritian government approaches the issue with caution.

What makes investment-based citizenship—often referred to as “golden passports”—compelling is the common belief that citizenship is anchored in a citizen’s bond with the government and the rights they hold within that country.

Contrarily, investment-based citizenship often hinges on the external rights that citizenship affords, such as visa-free travel to other nations, business opportunities, reduced import taxes, or options for sending children to schools abroad.

This is creating a situation where foreign powers hold sway over the value of one’s citizenship. For instance, if the EU revokes visa-free access, as happened with Vanuatu—whose lenient background checks led to the EU’s intervention—the value of that citizenship drastically declines.

Turkey is a key player in this space, welcoming Russian nationals when other countries are less accommodating.

A striking 50 percent of individuals securing citizenship in Turkey do so through investment pathways.

Caribbean nations with such programs also provide access to the EU, and the United States pays close attention, as its foreign policy can influence citizenship regulations in other countries, requiring them to adhere to specific standards to maintain favorable relations.

What challenges do these investment citizenship programs pose for local Mauritians?

As a small developing island, Mauritius grapples with developing its economy while heavily relying on imports, making this a significant economic challenge.

For some nations with citizenship-by-investment programs, these initiatives can contribute as much as 20 percent to the GDP—sometimes even reaching 50 percent.

However, real risks exist; losing visa-free access could dramatically impact the large Mauritian diaspora spread across the globe, complicating family visits—an essential consideration for the government.

So, how does Mauritius fit into this larger narrative?

Mauritius has had an investment law since 1999, requiring two years of residence for naturalization.

In 2018, the Prime Minister proposed introducing citizenship by investment in a budget speech, but faced significant pushback, leading to the abandonment of the idea.

Surak remembered studying this context, understanding the complex historical and social fabric of the Mauritian population, and how these social intricacies factor into their decision against adopting such citizenship models.

Mauritius does have visa-free access to the EU but lacks an active investment residency program, unlike around 50 other countries globally.

The European Union’s migration policies are affecting investment residency programs globally, including Mauritius.

Inside the EU, visa regulations are contentious, often seen as privileges afforded to the wealthy while neglecting refugees.

Turkey, for example, is hosting around four million refugees, primarily from the Middle East, a situation complicated by the EU’s financial incentives for Turkey to manage this population.

About half of the EU member states currently maintained residency by investment programs.

Surak found it intriguing to research Mauritius’ developments in this arena.

Countries like Portugal, Spain, and Greece operate substantial residency by investment programs, with the largest initiatives located in the Global South, particularly the United Arab Emirates, which processed approximately 50,000 golden visas annually.

Malaysia, Panama, and South Korea also feature prominently in this sphere.

While Mauritius is well-positioned in this landscape, it has not yet made a substantial impact.

However, the existing investment residency program is significant, especially when compared to the United States relative to the local population.

How do investment residency programs influence Mauritius’ economy?

Surak emphasized the importance of the program’s structure over its mere presence.

Multiple challenges can arise, especially in the real estate sector, where funds might not effectively circulate within the economy.

Unlike in other countries where investment projects often face issues like poor construction or abandonment, Mauritian projects are generally completed and retain their value, indicating a genuine interest among investors to remain.

This yields considerable economic benefits for Mauritius, but it is essential to assess whether these benefits align with national objectives and ensure continuous discussions and evaluations of the program.

Mauritian pride and identity significantly influence its citizenship and residency policies.

Access to public beaches and open spaces is a critical aspect of national identity, with Mauritians historically opposing threats to this access.

Surak added that the citizens possess a unique pride in their nation that distinguishes them from populations in other countries.

There are notable risks associated with citizenship by investment programs.

The stakes are much higher because revoking citizenship is more complicated.

Countries with such programs often turn to international institutions for background verification due to the associated risks, which Mauritius does not currently do.

In contrast, residency by investment programs typically rely on banks for conducting due diligence.

What trends should we anticipate in the global citizenship market, and how might Mauritius react to these shifts?

An increasing number of individuals are now prioritizing regional commerce.

For those conducting business in Africa, acquiring a passport from the EU or the U.S. may soon feel burdensome; possessing an African passport could simplify transactions and assert more autonomy from Western powers.

Before the COVID-19 pandemic, American citizens rarely pursued alternative citizenship options.

However, global uncertainties fostered an interest in exit strategies, with many Europeans following suit, seeking a back-up option without necessarily relocating.

The investment citizenship market is evolving significantly, and residency by investment programs are becoming more commonplace.

In this context, Mauritius is setting itself apart, attracting not just investors but also those looking to reside in the country, carving a unique path in the competitive landscape of global mobility.

Additionally, ethical considerations regarding the sale of citizenship in small island nations like Mauritius merit thorough examination.

The discourse surrounding who qualifies for these programs raises crucial questions about fairness and transparency in the application processes.

Ultimately, significant reflection is necessary to determine the societal values governing these citizenship and residency programs, ensuring they uphold Mauritian ideals without spiraling into xenophobia, which can manifest dangerously in any society.

Source: l’Express