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Study & Analysis · August 2026

Indian Ocean: A Regional Economic Integration Potential Still Largely to Be Built

CR
Catherine Dubreuil Le Roy

What if the next big economic playing field were right next to Mauritius? That's the question raised by the presentation of a study conducted by the firm Ernst & Young (EY), delivered by Jérémie NONE, on economic integration and trade opportunities in the western Indian Ocean. A surprising finding, and a real opportunity for those who know how to position themselves early.

An Almost Paradoxical Finding

Réunion, Mayotte, Mauritius and Madagascar are neighbours, separated by only a few hundred kilometres. And yet, the EY study, carried out in partnership with several regional chambers of commerce (Réunion, Mayotte, France-Madagascar, France-Mauritius) and Club Export Réunion, with the support of the French Development Agency, reveals a striking figure: the share of goods trade between these islands remains very limited, and has even declined slightly over the past decade.

  •  Historically weak trade flows between the islands of the region
  • Geographic proximity that remains under-exploited
  •  Particularly strong potential in the agri-food sector
  • Public-private cooperation identified as a key development lever

Far from being discouraging, this finding actually reveals considerable room for growth for the region's economic players.

 An Opportunity for First Movers

The study's presentation workshop, held in Madagascar in the presence of numerous institutional stakeholders (the French embassy, the European Union, chambers of commerce), highlighted several development levers:

  • Strengthening agronomic research and innovation to structure regional supply chains
  • Developing cooperation between the public and private sectors
  •  Identifying new trade routes between the islands, beyond the traditional shipping lanes to Europe or Asia
  • Building economic complementarity between territories with different profiles (Madagascar as an agricultural breadbasket, Mauritius as a services and finance platform, Réunion and Mayotte as gateways to Europe)

💬 "In a region where geographic proximity has not yet produced its full economic value, it is the first organised players who will capture the most opportunities."

What This Means for a Mauritius Setup Project

For an entrepreneur choosing Mauritius as a base, this finding changes the perspective: the island is no longer just an isolated, stable destination, it becomes a possible anchor point in a regional zone undergoing a full redefinition, with development potential that, for the most part, remains to be written.

  • A strategic geographic position, at the crossroads of Africa, Madagascar and Europe (via Réunion and Mayotte)
  •  Easier access to still under-structured supply chains, and therefore open to innovation
  • A favourable institutional momentum, driven by the AFD, the European Union and local chambers of commerce