Mauritius enacts electronic Bill of Exchange law, first African country to adopt MLETR - Trade Treasury Payments

Mauritius has formally adopted the UNCITRAL Model Law on Electronic Transferable Records (MLETR) by amending its Bills of Exchange Act, under Section 4 of the recently passed Finance Bill (No. XVIII of 2025).

The amendments within the Bill establish legal recognition for electronic bills of exchange (eBoE), defining them alongside paper bills and broader electronic records. The legislation introduces a new Part IA – Electronic Bills of Exchange, embedding core MLETR principles into local law.

A look inside the new law

Under Section 70A, the revised Act ensures that an electronic bill of exchange shall not be denied legal effect solely because it is electronic. Consent to use eBoE may also be implied by conduct, while users cannot be compelled to go electronic without their agreement.

Section 70B mandates that an eBoE must include the same information required in a paper bill, and must use reliable methods to ensure originality, control, integrity, and traceability throughout its lifecycle.

Section 70C addresses control and possession, stating that exclusive control over the eBoE must be established, and transfer of control must mirror the legal effect of physical possession.

Crucially, Section 70D defines a “reliable system” as a framework satisfying data integrity, security, audit, accreditation, and applicable industry standards. The system must ensure the uniqueness of each document, protection against unauthorised alteration, joint control mechanisms, demonstrable control rights, and proper transfer procedures.

Additional provisions cover endorsement, amendment, and conversion between electronic and paper form (Sections 70E and 70F). The law also provides power for the Minister to introduce regulations for technical or procedural matters (Section 70G).

Luca Castellani, legal officer at the Secretariat of the United Nations Commission on International Trade Law (UNCITRAL), and TTP Global Advisory Panel member said, “Mauritius has been an early adopter of UNCITRAL texts on electronic commerce, and it is therefore no surprise that it is the first country in Africa adopting MLETR.”

“The UNCITRAL Secretariat remains engaged with the Mauritian Authorities to leverage the MLETR for the digitalisation of transferable documents and instruments other than bills of exchange.” Castellani said.

Aligning with global trends

Mauritius, an island country off the southeastern coast of East Africa with a population of 1.26 million, joins a growing list of jurisdictions embracing MLETR to facilitate fully electronic trade finance instruments, including bills of exchange, warehouse receipts, and bills of lading. The model law, adopted by UNCITRAL in 2017, promotes functional equivalence between paper and electronic transferable documents, with control as the electronic analogue of possession.

More than 10 countries, including the UK, Singapore, and France, have now adopted MLETR-compatible laws, stimulated by G7‑level digital declarations endorsing the initiative.

Lamin Drammeh, Head of Trade Finance at African Development Bank (AfDB), welcomed the move, telling TTP that this adoption is a significant development which paves the way for other countries in Africa. “In line with the trade digitalisation aspirations under African Continental Free Trade Area (AfCFTA), AfDB recognises the numerous benefits that could accrue to the continent when more countries adopt the MLETR. The adoption of the MLETR by a critical mass of countries globally will increase efficiency, reduce costs, enhance transparency and facilitate more trade, thereby contributing to the economic progress of all nations. Therefore, we at the AfDB support these initiatives and encourage more African countries to follow suit. With increased adoption of the MLETR, the future of trade is bright. We all must be a part of this transformation,” he said.

Significance for businesses and finance

The legislative move is expected to enhance efficiency, security and resilience in trade finance in Mauritius by reducing paper‑based delays, limiting fraud and enabling smoother transactions across borders. It modernises financial infrastructure and aligns with global efforts to digitalise trade documentation.

Businesses and financial institutions, particularly those engaged in export, commodity trading and banking, may now prepare to adopt eBoE workflows, once reliable systems and regulatory guidance are implemented.

Daniel Essoo, CEO of the Mauritius Bankers Association, told TTP, “Mauritius has been a trading hub for over 400 years, with longstanding legislation around trade and bills of exchange. During the COVID-19 lockdowns, planes were grounded and letters of credit weren’t being couriered—we needed alternative ways to get much-needed imports and exports off boats, without relying on physical documents.

That’s when we started working electronically, and we realised the legal environment in Mauritius already largely enabled it. In parallel, our banks serve international clients who increasingly use electronic trade finance platforms.

Trade finance is a key pillar of growth for Mauritian banks, especially as we benefit from preferential trade agreements with India, China, the EU and under the AfCFTA. We’re currently modernising trade finance in collaboration with the central bank. Given the legislative calendar, we requested that the recent amendments be included in the Finance Act to explicitly enable electronic bills of exchange. The legal foundations are now set.”

Joel Lambert, Head of Legal at MCB, said the legislation reflects years of work and sector-wide ambition. He said, “Mauritius has consistently led digital innovation in Africa, having enacted the [act] as early as 2000. Building on this legacy, MCB, a key architect in the evolution of the country’s financial ecosystem, has spearheaded the next wave of the country’s digital transformation by championing the integration of digital trade instruments through proposed amendments to the Bills of Exchange Act in the Finance Act 2025.”

Mauritius typically imports about three times more than it exports, heavily depending on fuel, machinery and consumables, while exporting a mix of primary goods (fish, sugar) and manufactured products (apparel, diamonds, specialised animals). The island’s most important export markets include South Africa, France, Madagascar, the UK, and the United States. Its primary import sources are China, India, South Africa, the UAE, and Oman.

Pamela Mar, Managing Director of the International Chamber of Commerce’s Digital Standards Initiative (DSI), said, “It’s a historic day for Mauritius as the first country on the African continent to align to the MLeTR for bills of exchange, which are critical enablers of digital trade finance. On legal reform, we hope this will be the start of full trade document digitalisation for this economy. We also look forward to working with the local authorities and business community to facilitate the changes in trade ahead, to drive growth, efficiency and inclusion.”

Arnaud Levasseur, Executive Vice President of Global Trade Solutions at MCB, said the new law represents more than just legal reform—it is a launchpad for inclusive regional growth, “Mauritius, with its strategic geographic location and progressive financial ecosystem, is uniquely positioned to serve as a digital trade hub connecting Africa to global markets. By combining robust legal frameworks, trusted banking infrastructure, and forward-thinking partnerships, Mauritius is creating the foundations for a more integrated, resilient, and opportunity-rich African trade landscape.”

What happens next

Implementation will require the development of reliable technology systems, probably under regulatory oversight. The Minister is authorised to introduce detailed regulations addressing technical standards, accreditation, signature methods and system governance as envisioned by MLETR.