Mauritius allegedly being used by companies as tax haven to shift profits away from Africa; Malawi Mangoes denies allegations
An article by the Foreign Policy alleges that Malawi Mangoes has been using Mauritius as a tax haven to avoid paying taxes in Malawi. The Business and Human Rights Resource Centre invited Malawi Mangoes to respond to the allegations. The company stated that all its "sales revenue has stayed within Malawi and the Company has been and is wholly compliant with local Malawian tax regulations".
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Author: Matt Kennard & Claire Provost, Foreign Policy
"African Governments Are Paying for the World Bank’s Mauritius Miracle"
The security guard at Malawi Mangoes’ registered address at an office at the St Louis Business Centre in downtown Port Louis is not sure if we’re in the right place. The staff at the front desk are bewildered by our request to speak to someone from the company...
...The IFC has approved loans and investments in more than 1,600 companies since 2012. According to our analysis of their project disclosures, at least 50 of these were for companies registered in Mauritius but operating elsewhere. Many of these companies, including Malawi Mangoes, are based in sub-Saharan Africa, and their registration in Mauritius may be depriving African governments of much needed-tax revenue...
When the IFC approved its $5 million investment in Malawi Mangoes in 2014, it was described as an agribusiness project in the soft drink sector, with the loan going to support the company as it tried to establish itself in the country. This would create much-needed rural jobs, the IFC argued, “thus injecting money to the local economy through wages and benefits paid.” Economic growth in poorer countries like Malawi is being held back, the IFC contends, by “the lack of risk capital” needed to “build the dynamic, job-creating companies that drive prosperity.”
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- Related companies: Malawi Mangoes
Author: Malawi Mangoes
"Response to Foreign Policy Article – 25th October 2018"
[Malawi Mangoes] categorically denies the inaccurate information presented in the article posted on the www.foreignpolicy.com website.
Since inception in 2011, the Company has generated approximately $1.8m in cumulative revenue, has made significant operating losses and has paid local taxes in excess of $2m
Contrary to the inaccurate nature of the above mentioned article, all MM (Operations) Limited sales revenue has stayed within Malawi and the Company has been and is wholly compliant with local Malawian tax regulations
The Mauritian holding company was established to attract and facilitate international investment into the Company
- Related stories: Malawi Mangoes accused of siphoning tax from Malawi to Mauritius tax haven; company denies allegations
- This is a response from the following companies: Malawi Mangoes