GMEX, a provider of multi-asset exchange and post-trade technology, announced on Monday that it will take a leading role in the launch of the Mauritius International Derivatives and Commodities Exchange (MINDEX). According to the statement, MINDEX will be a multi-commodities and derivatives exchange platform.
The MINDEX project will have full regulatory oversight by the Mauritius Financial Services Commission. The project will build a gold refinery, a secure vault, launch an advanced technologically enabled spot exchange, derivatives exchange and clearinghouse. GMEX has taken a leading role in the initial consortium, with the project amounting to $35 million.
Following the opening of its regional headquarters in Mauritius, GMEX has been working closely with the British High Commission Mauritius and Department for International Trade (DIT) Mauritius. The DIT has been an active supporter of the company from the beginning of its investment journey and has facilitated meetings with key stakeholders.
Commenting on the MINDEX project, the Department for International Trade’s Minister for Investment Graham Stuart MP said in a statement: “as an international economic department, we are pleased to be working with GMEX in Mauritius on an investment which will sustain and create jobs in Mauritius and the UK. The MINDEX project will support an ecosystem which creates opportunities in gold mining, refining, storage, recycling, and in commodities trading and financial technology.
“We will continue support companies’ overseas investments where there is benefit to the UK by offering practical support to investors, facilitating introductions to ease market entry and using our expertise to explain political sensitivities and cultural differences to British businesses. ”
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The CEO of GMEX Group, Hirander Misra, added: “Without DIT involvement and support there would have been much less likelihood that the investment would have gone ahead as quickly and smoothly as it has.”
“DIT, the British High Commission in Mauritius and wider UK Government played a fundamental role in facilitating increased confidence and positioning through its activities leading to economic benefits for Mauritius and the UK.”
Boost to Mauritius’ economy
The commodity and derivatives exchange is expected to be a boost to the Mauritian economy. According to the statement, the MINDEX project will increase real GDP growth of Mauritius to 4.1 percent instead of the estimated 3.9 percent.
GDP per capita is also expected to increase from Rs 388,000 ($5,693), compared to Rs 387,000 ($5,678) estimated by MCB Focus. Over a three year period, the total effect on the GDP will amount to $53 million. The exchange will also create around 104 direct jobs over two years in Mauritius, and an additional 408 new secondary jobs over the same period.
The commodity exchange is also expected to be beneficial for the United Kingdom’s economy. An increase in exports and repatriated profits back to the UK is estimated at £100 million ($132.56 million). It is also forecast to create an extra 1,000 domestic jobs over a five year period, which in return, will facilitate additional UK GDP growth.