Mayotte, a French territory located in the Indian Ocean, offers several opportunities for foreign investment. The country has a young and growing population, with a high literacy rate and a skilled workforce. Mayotte’s strategic location in the Indian Ocean also offers opportunities for foreign businesses looking to expand their operations in the region. The country has experienced dynamic economic growth averaging 7% annually over the last ten years, with a hub and European standard infrastructures in the Indian Ocean. Mayotte’s exclusive economic zone of 74,000 sq. km and a commercial port with €150 million of investment between 2013 and 2028 provide manifold business opportunities.
Mayotte’s openness to international investment can be seen at the Pamandzi international airport, which offers 11 international links, including Paris, Réunion, and Nairobi. The introduction of a direct flight between Paris and Mayotte is leveraging growth. Due to its French and European connections, Mayotte provides guarantees of legal certainty and political stability in the region. Mayotte was the leading French region for business creation in 2017, with a 16.4% increase from 2016. The country has digital infrastructure corresponding to European standards, with high and very high-speed internet coming online in 2021.
Mayotte is semi-open to foreign investment, with much of it coming from Indian companies, and protects its key services. The country imposes high tariffs on articles that are not considered “of need,” such as alcohol, which has a 300% tariff. Mayotte obtains increased assistance from France, international NGOs, and the EC. The economy and future development of the island are heavily dependent on French financial assistance, an important supplement to GDP. Mayotte has two governmental tax systems, personal and corporate income and property taxes, of which they retain a significant portion for the local government. Significant tax cuts are given in both categories to French citizens who move or invest in Mayotte, which can be as high as 60% depending on the investment. In conclusion, Mayotte offers several opportunities for foreign investment, including a young and skilled workforce, strategic location in the Indian Ocean, and a dynamic economy. The country’s openness to international investment, guarantees of legal certainty and political stability, and digital infrastructure corresponding to European standards make it an attractive destination for foreign businesses. Mayotte’s semi-openness to foreign investment, high tariffs on non-essential goods, and dependence on French financial assistance are some of the challenges that foreign investors may face. However, the country’s potential for growth and government support for businesses affected by the pandemic provide a foundation for economic recovery.
