The Regulatory Sandbox Licence (RSL) is an initiative proceeding from the Mauritius 2016/2017 National Budget. The RSL regulation was broadcast under the Investment Promotion Act in October last year and the relevant guidelines were subsequently put in place.
The RSL is a measure issued by the Board of Investment (BOI), after consultation with the other relevant authorities and ministries, which offers the possibility for an investor to conduct a business activity for which there exists no legal framework or no adequate provisions under existing legislation in Mauritius.
Where such ventures were previously unable to start before a complete set of regulatory framework was in place, the RSL, which has been inspired from highly successful economies, allows for the testing of promising projects, within set parameters, an initiative which surely opens the door for creativity and innovation.
Upon completion of the testing period, and once it has demonstrated applicability and compliance, and the benefits of the project are clear, the temporary framework may be used as a basis for setting permanent parameters for these new industries.
To date, three RSL licences have been issued, to ITOO Film Services Limited (ITOO), who applied for an RSL pertaining to the introduction of the Completion Guarantee Bond in Mauritius. The Completion Guarantee Bond, although tried and tested in other countries, is a novel concept being introduced by ITOO in Mauritius with the aim of consolidating the foundation for a reliable ecosystem for the film industry. It is an arrangement whereby the Guarantor (ITOO) will ensure the completion and prompt delivery of the film or other audiovisual products in accordance with the script and schedule.
The other two RSL licences issued by the BOI include a licence issued to an online crowdfunding platform, as well as for the production of stem cells to be used in medical treatments.
As Mauritius aspires to become a high-income economy, the RSL is a bold step taken to embrace innovation as a driving force for the country’s development.
The RSL is a unique opportunity for investors wishing to introduce groundbreaking business concepts in Mauritius, and OCS would be pleased to assist in these endeavours. For more information about the RSL, please contact info@cs00195.wpengine.com/ocs.