More than a year after Cyclone Chido, businesses in Mayotte are operating in a climate deemed "uncertain" by the Overseas Departments Issuing Institute (IEDOM). In a recent report, the organization highlights persistently weak cash flow, increased operating costs, and a growing dependence on public procurement, which represents nearly 70% of local economic activity.
The construction sector, expected to be a primary beneficiary of the reconstruction effort, is experiencing a slowdown despite full order books. Companies have paid for equipment repairs upfront while awaiting insurance payouts, which is putting a significant strain on their finances. This is compounded by recruitment difficulties and high staff turnover in a region facing a lack of attractiveness and administrative hurdles related to residency permits.
Payment delays and new taxes complicate the recovery
Since January 1, 2026, a tax on construction materials imported from outside the European Union—particularly steel, aluminum, and cement—has further increased costs. These non-EU supplies were previously favored for their more competitive prices and delivery times. Meanwhile, payment delays from local authorities, already significant before the cyclone, have become "unprecedented," exacerbating the strain on their finances.
The IEDOM (Overseas Issuing Institute) points out that the Mayotte economy was already weakened by a series of shocks since 2020: the health crisis, logistical disruptions, insecurity, water shortages, and social unrest. While the emergency law adopted in 2025 prevented an immediate wave of bankruptcies, structural difficulties persist. The economic reform law passed in August, which notably includes a free trade zone and investments in housing and infrastructure, could improve the economic environment. However, the institute warns that its effectiveness will depend on its swift implementation, tailored to the needs of local businesses.
