Investment Promotion and Protection Agreements (IPPA)

Besides its increasing network of DTAs, Mauritius has also signed a number of Investment Promotion and Protection Agreements (‘IPPAs’). These IPPAs provide additional comfort to investors since they significantly reduce investment risks in those countries where there may exist some risk of nationalisation or expropriation.


The IPPA normally guarantees the following to the investors from the contracting states: free repatriation of investment capital and returns; guarantee against expropriation; most favoured nation rule with respect to treatment of investment, compensation for losses in case of war or armed conflict or riot; and arrangement for settlement of disputes between investors and the contracting states.


The IPPAs signed are designed to protect and encourage Mauritian investments overseas and they actually contain clauses stating that the investments shall enjoy continuous protection and security. This is very beneficial especially for investments in Africa since a lot of African states have suffered from political instability, though otherwise they may represent excellent investment opportunities due to a number of inherent factors.
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