The purpose of this report is to advise the chief executive officer of Cisco Sytems (pty) Ltd, on the impact of globalization on the company and also on the potential for expanding the operations into Mauritius.

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Executive Summary

The purpose of this report is to advise the chief executive officer of Cisco Sytems (pty) Ltd, on the impact of globalization on the company and also on the potential for expanding the operations into Mauritius.   Cisco Systems in South Africa is strategically positioned to help further entry into the African continent.  The company has expanded in many European, Asian and US markets with success but now the focus is on the South African entity to do the expansion through Africa.

Mauritius was chosen due to its strong and consistently growing economy, political stability and it is ready to embrace the use of technology according to the Mauritius Board of Investment ().  Mauritius also has plans and incentives to attract foreign investment which makes entry into the country much cheaper and rewarding for investors.

This study has covered areas relating to the Mauritian economy, government, local and international social and political issues with relevance to Mauritius as a potential investment opportunity.    The Mauritian economy is now diversifying into new industries such as Information Technology, financial services and light engineering.

The economy is growing with an increasing GDP, year on year, and with a highly literate workforce.  The location is also strategic in terms of it proximity to South Africa and to the rest of Africa.  Mauritius has strong trade agreements with South and the rest of Africa and has always been a good business partner to South Africa.  Given, these factors an in depth study has been taken into the feasibility of investing into the country.

TABLE OF CONTENTS

Item                                                                                        Page

Introduction                                                                                4

  • Cisco Systems – Company Background                                        4
  • Cisco Systems South Africa                                                        5

The Information and Communications Technology Industry (ICT)                6

Country Background                                                                7

E Commerce                                                                                8

Growth                                                                                8

Resource and Environment                                                                9

  • ICT Sector                                                                        9
  • Labour Force                                                                        9
  • Globalization                                                                        10
  • Trade and Finance                                                                10

Fiscal Policy                                                                10

Monetry Policy                                                        11

Taxation                                                                11

        Corporate taxes                                                11

        Personal Income tax                                                11

        Value Added Tax                                                11

        National Pension Fund                                        12

        Other Taxes                                                        12

        Double tax agreements                                        12

  • Investment Attractions                                                        12

Export Processing Zone                                                12

Global Businesses                                                        12

Free Port                                                                13

TABLE OF CONTENTS

Item                                                                                        Page

Regional Headquarters Scheme                                        13

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Permanent resident scheme                                                13

  • War on Terrorism                                                                14

SWOT Analysis                                                                        14

  • Strengths                                                                        14
  • Weaknesses                                                                        15
  • Opportunities                                                                15
  • Threats                                                                        16

Conclusion                                                                                17

Reference                                                                                18

1.Introduction

Cisco Systems – Company Background

Cisco Systems South Africa (pty ) Ltd is a wholly owned subsidiary of Cisco Inc which is a US incorporated company.  The both companies share the same strategic goals and business vision.

Cisco Systems is the leader in networking for the internet.  Today, networks are the essential part of business, education, government and home communication and Cisco Internet ...

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