By Niralah Beeharry, Senior Manager for Fund Administration in the Funds and FI department of DTOS
Environmental, Social and Governance (ESG) investing has become an increasingly important consideration for investors seeking to combine financial returns with sustainable and responsible concerns. For Mauritius, this trend presents a particularly interesting opportunity given the country’s position as an international financial centre and its established role as a platform for investment into Africa.
A Mauritius-based ESG fund can provide investors with a structured and regulated vehicle through which to access African investment opportunities while incorporating environmental, social and governance considerations into the investment process.
ESG funds and the Mauritius regulatory framework
The Financial Services Commission (FSC) has established a specific framework for ESG funds through its Disclosure and Reporting Guidelines for ESG Funds, effective since 24 March 2025. The Guidelines apply to Collective Investment Schemes and Closed-end Funds where ESG factors constitute a key investment focus and strategy, with at least two-thirds of the scheme’s Net Asset Value being ESG-focused. Impact funds whose primary objective is to generate positive and measurable social or environmental impact also fall within the framework.
The framework is intended to promote transparency and reduce the risk of “greenwashing”. An ESG fund must clearly articulate its ESG investment objective, strategy, criteria and methodology, including how ESG factors are incorporated into investment decisions and monitored throughout the life of the fund.
The ESG strategy should be aligned with the UN Sustainable Development Goals (SDGs) or other widely accepted sustainability goals. The framework also provides for ongoing disclosure and reporting, including an annual Sustainability Report and appropriate certification or verification of ESG-related information.
For fund managers and promoters, this means that ESG should be embedded into the fund’s investment and governance framework from the outset rather than treated simply as a marketing label.
Why ESG investment in Africa?
Africa presents a compelling combination of development needs and long-term investment opportunities. Renewable energy, sustainable infrastructure, healthcare, financial inclusion, sustainable agriculture, technology and climate resilience are areas where capital can generate both commercial opportunities and measurable social or environmental outcomes.
This is particularly relevant to ESG investing because many of Africa’s structural challenges are also areas of future growth.
A Mauritius ESG fund could, for example, invest in renewable-energy projects, sustainable agriculture businesses, financial-inclusion platforms or companies providing essential services. ESG objectives could be measured through indicators such as renewable energy generated, emissions avoided, jobs created, access to financial services or the number of communities benefiting from an investment.
Who can invest in a Mauritius ESG fund?
ESG funds targeting Africa may appeal to a broad range of investors, depending on the fund structure and applicable investor eligibility requirements.
Institutional investors, including pension funds, insurers and other long-term investors, may consider ESG funds where sustainability factors are increasingly integrated into investment policies and risk management.
Development Finance Institutions (DFIs) and impact investors may be particularly interested in strategies that combine financial returns with measurable development outcomes. An Africa-focused fund with clearly defined ESG objectives and robust reporting can potentially provide these investors with exposure to both financial and developmental themes.
Family offices and high-net-worth investors may also find such funds attractive, particularly those seeking long-term exposure to Africa while incorporating sustainability considerations into their portfolios.
Finally, strategic and corporate investors may consider ESG funds targeting sectors aligned with their own sustainability objectives, such as renewable energy, infrastructure, healthcare or financial inclusion.
An opportunity for fund promoters and investment managers
The development of ESG investing also presents an opportunity for fund promoters and Investment Managers looking to establish Africa-focused investment vehicles in a well-regulated and internationally recognised jurisdiction.
Mauritius offers an established fund-management ecosystem, experienced licensed management companies and professional service providers, together with a regulatory framework specifically addressing ESG funds. Its established positioning as a gateway for investment into Africa further strengthens the proposition for managers seeking to develop investment strategies focused on the continent.
For promoters and Investment Managers, a Mauritius-based ESG fund can provide a platform to structure and market strategies targeting areas such as renewable energy, sustainable infrastructure, healthcare, financial inclusion, sustainable agriculture and other sectors where Africa offers significant long-term opportunities.
The FSC’s ESG framework also provides greater clarity on the requirements for establishing and managing an ESG-focused fund, including the need for a defined ESG strategy, appropriate disclosures, ongoing monitoring and reporting, and alignment with recognised sustainability objectives.
This combination of regulatory clarity, a developed fund ecosystem and access to African investment opportunities makes Mauritius an attractive jurisdiction for promoters and Investment Managers seeking to launch credible ESG and impact-oriented funds.
As demand for sustainable investment continues to grow globally, Mauritius is well positioned to support the next generation of Africa-focused ESG funds, providing promoters and Investment Managers with a platform from which to raise international capital and channel it towards sustainable investment opportunities across the continent.
About the author: Niralah Beeharry is a Senior Manager for Fund Administration in the Funds and FI department of DTOS. With more than 18 years’ experience in advising, structuring, and establishing Global Business Funds, Companies and Trusts. NBeeharry@dtos-mu.com