Environmental analysis: -

Political Context
In this we can see overall outlook of political environment for the countries we chose.
Mauritius’ has a long history of decent governance and political stability so it positions ahead of other
African countries. Since their independence in 1968, Mauritius has enjoyed real political stability, there
election process has been rated as fair, competitive and free. Its government is democratically elected
every five years. The political structure is based on the British parliamentary model, following the
principle of the separation of powers, legislature, executive and judiciary, under the vigilant eye of the
"fourth power", a free press. Their successive governments have a common vision towards shared
development, sustaining democratic values, good governance and social inclusion, important
ingredients to Mauritius’ success story.
Now in Rwanda, there political stability is since the genocide in 1994. Parliamentary elections in
September 2013 saw women fill 64% of the seats, and the Rwandan Patriotic Front maintain an absolute
majority in the Chamber of Deputies. An amendment to the constitution in December 2015 paved the
way for the re-election of President Paul Kagame in August 2017 to third 7-year term in office. Rwanda
had peaceful local government elections at the cell and village levels in 2016.

Rwanda’s ranking in the Ibrahim Index of African Governance improved to 9/54 (score of 62.3; 100 = best))
in 2016 from 11/54 (60.7) in 2015, which is better than the East Africa (44.9) and continental (50.0) averages.
The key risk to the political stability of Rwanda is civil unrest in neighbouring Burundi and the eastern
Democratic Republic of Congo
Coming to Morocco it is a politically stable country. It is a constitutional monarchy, led by King Mohamed
VI who came to the throne in 1999. As the new government came into power they have announced a new
program to pursue the macro-economic and constitutional reforms, upgrade social services and promote job
creation. The present government actively encourages and attracts foreign investment and has sought to
facilitate it through macro-economic policies, trade liberalization, and structural reforms. Further, due to its
political stability, solid infrastructure, and strategic location, Morocco is rapidly becoming a regional
manufacturing and export base for international companies.

Economic outlook: -
Mauritius has undergone a remarkable economic transformation since independence. High economic
growth rates averaging 4.5% between 1990 and 2012 more than tripled Mauritius’ GDP per capita
during the period to US$8,592. Preferential trade agreements particularly with the European Union
(EU) and India facilitated an impressive economic diversification. At independence in 1968, Mauritius
was a single crop economy completely dependent on sugar. Tourism now accounts for 8% of GDP,
30.9% of exports and 7.9% of employment. Textile at 4.9% of GDP and 19.2% of exports employs
about 13.8% of the workforce. A vibrant financial services sector driven by off-shore services has also
emerged, accounting for 10.2% of GDP. Other sectors such as Information and Communication
Technology (ICT), real estate and wholesale and retail trade have each also contributed between 5-10%
of GDP on average over the past 5 years.
The Mauritian economy grew at a sub-optimal average rate of 3.6% during the past five years. On the
bright side, the change in leadership at the helm of Government ended months of speculation bringing
added clarity to forward policies which is expected to be beneficial for business.
The economic outlook remains positive, with a real GDP growth projection of 6.0% in 2016, albeit
lower than the 6.9% recorded for 2015. The slower growth projection in 2016 is a result of slow growth
in agriculture due to the recent drought and a contraction in mining activities owing to a declining price
for minerals
With a stable macroeconomic environment and an increasingly attractive investment climate, Rwanda
is creating a favourable environment for business start-ups, entrepreneurs and other private sector
actors. Real gross domestic product (GDP) growth is estimated to have slowed down to 6.0% in 2016
due to weak external demand and tight monetary policy from 6.9% in 2015 but it is projected to bounce
back to 6.2% in 2017 as conditions improve.
The current account deficit is expected to have widened to 13.2% in 2016 from 13.1% of GDP in
2015.The fiscal deficit is estimated to have decreased to 3.2% of GDP in 2016 from 5.3% of GDP in
2015 before increasing to 5% in the fiscal year 2017/18.
Over the last decade and with particular focus in the past few years, Morocco has reformed its economy
to enhance productivity and strengthen resilience to external shocks. Key reforms have included
restoring macro-economic balance and cutting subsidies. Growth has averaged 4.5% with agriculture,
phosphate exports, and remittances as the main contributors to GDP. In 2016, Morocco had a GDP of
$103bn and a GDP per capita hovering around $3,000.
Diversifying the economy is a government priority as set out in the 2014-2020 Industrial Acceleration
Strategy which promotes the creation of “industrial clusters” in key industries, including mining,
renewable energy, automotive, aerospace, cabling, textiles and pharmaceuticals. If successful, the
strategy is expected to generate half a million jobs and increase the share of industry in GDP by 9%,
from the current 14% to 23% of GDP.
Legal:-
Mauritius have an easier process of registration of property by digitizing its land records. Real property
rights are respected, but enforcement of intellectual property laws is relatively weak. The judiciary
continues to be independent, and the legal system is generally non-discriminatory and transparent.
Anticorruption laws are not enforced effectively. Officials sometimes engage in corrupt practices with
impunity
A very favourable taxation system
Mauritius has adopted a low rate of taxation to encourage the setting up of local and foreign companies:
• No inheritance tax
• Tax credits of 80% for offshore companies
• 15% tax on company profits and personal income
• Value-Added Tax at 15% (refundable)
• No tax on dividend
• No customs duties or VAT on equipment
The Rwandan legal system is mainly based on the Belgian civil law system. Rwanda’s judicial system
suffers from a lack of resources and capacity, including well-functioning courts, with cases currently
backlogged two to five years. Investors occasionally cite the GOR’s casual approach to contract sanctity
and say the government sometimes fails to enforce court judgments in a timely fashion. National laws
governing commercial establishments, investments, privatization and public investments, land, and the
protection and conservation of the environment are the primary directives governing investments in
Rwanda. Although Rwanda already has legislation in place to regulate competition, the GOR is setting
up the Rwanda Inspectorate and Competition Authority (RICA), a new independent body with the
mandate to promote fair competition among producers.
Now about Morocco legal frameworks, There is no obligation as part of a foreign investment or to make
such investment with a Moroccan partner. In taxation he commercial companies in Morocco are mainly
subjected to,

 Corporate tax (standard rate 30%)

  VAT (standard rate 20%)
 Business tax (between 10% and 20% - exoneration for 5 years)
 Income tax (proportional rate between 0% and 38%)
Morocco follows social laws about labor code and is characterized by its conformity to the basic
principles set by international standards as laid down in the UN conventions and its specialized
organizations in relation to labor matters.

Socio- culture context: -

Mauritius’ generous social welfare system has been used to distribute proceeds from its sustained high
economic growth rates. Its Human Development Index (HDI) score of 0.781 and ranks 64 for 2015 is
well above the Sub-Saharan African average of 0.437, reflecting average life expectancy of 74.6 years
and a high standard of living with Gross National Income (GNI) per capita of US$8,240 in 2011. The
GoM estimates that less than 1% of the population living on less than US$ 2 per day.
Rwanda has made steady progress in developing its human capital. This progress is reflected in its
ranking in the Human Development Index (HDI) of the United Nations Development Programme
(UNDP). With an HDI 0.483, Rwanda shared the rank of 163 out of 188 countries in 2015 with Uganda.
It has made steady progress in all aspects of human development. Rwanda witnessed significant
improvement in outcomes at early stages of learning following its effective implementation of the
Education Sector Strategic Plan (ESSP) covering the period 2013/14 to 2017/18. It achieved all the
targets for universal primary education. Progress has also been made in Early Childhood Development
(ECD), with the pre-primary gross enrolment rate increasing to 20.2% in 2015 from 10% in 2010, but
it remains slightly short of the EDPRS II target of 24.0% in 2015
Morocco is known as a highly collectivistic country. Morocco has acceded to the seven major UN
Conventions on human rights, with some reservations on religious grounds. It has also ratified over 50
ILO conventions on labour rights, including the convention on Freedom of Association. Morocco has a
HDI score of 0.647 and is ranked at 123