Mauritius and Nigeria have signed a Double Taxation Avoidance Agreement (DTAA), the Mauritian Finance and Economic Development Ministry said here Monday.
The Mauritian Finance and Economic Development Minister, Xavier-Luc Duval, and the Nigerian Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Eweala, signed the documents at the weekend.
Speaking after signing the agreement, Duval highlighted the increasing role of Mauritius as a gateway for investment in Africa.
He said Mauritius was willing to strengthen economic relations with Nigeria, adding that "Nigeria which is the second fastest growing economy in Africa with an average growth of 7% over the last decade offers important opportunities for Mauritian businessmen."
The Minister estimated that the hotel industry, agriculture, food processing, ICT, construction and financial services were potential sectors where both countries could trade.
According to Okonjo-Eweala, the level of trade within Africa was low mainly due to trade barriers.
She expressed the hope that the DTAA would help bring down those barriers and improve integration between Nigeria and Mauritius.
Officials at the Mauritian Ministry said the DTAA would give further spur to the positive evolution of economic ties between the two countries.
It will provide greater tax certainty for businessmen while making clear the taxing rights of Mauritius and Nigeria on all forms of income arising from cross-border economic activities.
"The DTAA will also give a boost to cross-border investment by protecting investors from direct or indirect double taxation. It will enhance the commercial and economic relations and broaden investment opportunities for the business community of the two countries," they said.