Mayotte’s Economy in Precarious Recovery

€22.2 million has been distributed to 4,476 Mayotte businesses as emergency aid.

More than 1,500 applications for partial unemployment benefits have been approved, representing 7.2 million hours of lost work. These measures helped limit the immediate impact of Cyclone Chido and maintain activity on the island. However, according to the Overseas Departments Issuing Institute (IEDOM), this recovery is primarily based on crisis management, not on a sustainable economic recovery.

More than a year after the cyclone, Mayotte’s economy is showing signs of recovery. The construction sector, reconstruction-related services, and related activities have driven growth. The Business Climate Indicator (BCI) is high, reflecting the optimism of business leaders. But the IEDOM emphasizes that this momentum relies primarily on infrastructure repair and the replacement of destroyed equipment, rather than on genuine economic development.

The Institute also draws attention to the dependence on public aid and public procurement, on which nearly seven out of ten businesses depend. Before Cyclone Chido, many companies were already experiencing cash flow problems and payment delays. Today, 25% of businesses still have negative cash flow, and more than 70% of managers fear their financial situation will deteriorate if the exceptional measures end.

The IEDOM distinguishes two phases in the crisis management: the emergency law, which served as a shield after the cyclone, and the restructuring law, which aims to permanently transform the island’s economic framework. The long-term objectives are clear: modernize infrastructure, strengthen resilience to climate risks, and improve the structural capacities of businesses.

For IEDOM, the real challenge remains to transform this temporary recovery, driven by reconstruction and aid, into stable and sustainable growth for Mayotte.