Réunion is a French overseas territory and an island nation located in the Indian Ocean east of Madagascar and southwest of Mauritius. It is also a strategically placed territory acting as a platform at the junction of Africa, Europe and Asia. Being an outermost region of the European Union (EU), Réunion has political stability, modern infrastructure and access to European Markets whilst being located in a fast-growing region of the Indian Ocean. Even though it is a relatively small island, Réunion has a wide variety of opportunities for investment and entrepreneurship that support the development of sustainable businesses, particularly in tourism, renewables, agriculture, ocean economy, ICT, and high-value manufacturing.
The strong governance, excellent logistics services and investment incentives of the island makes Réunion a premier gateway for entrepreneurs seeking to launch sustainable innovative businesses in Africa’s emerging blue economy.
Why Start an Industry in Réunion
1. Strategic positioning and access to markets
Reunion Island has a significant geostrategic asset - being located at the crossroads of Africa, Asia and the Indian Ocean, providing access to markets in the Indian Ocean, South Africa and the European Union. In their capacity as part of France, the island abides by the trade standards and regulations of the European Union, allowing investors to export their products into European countries without tariffs. The site is also an attractive natural logistic and service center for Indian Ocean commerce.
2. Stable political economic environment
Réunion enjoys stable governance, a transparent legal system, and the opportunity of being part of the Eurozone economy due to it being an overseas department of France. Investors in Réunion benefit from the same level of legal protection and finance regulation as the jurisdiction of France, leading to low political risk and high levels of investor confidence.
3. Advanced Infrastructure
The island has infrastructure including ports, airports, road access and telecommunications ICT connectedness. The port of Réunion meets the needs of regional and international shipping. In addition the Roland Garros International Airport means that the island is connected to Africa, Europe and Asia. Additionally the island has good high speed internet access and telecommunications which are conducive to technology based businesses and digital start up environments.
4. Renewable Energy Potential
Réunion is at the forefront of innovation in using renewable and clean energy. The Island is pursuing an energy self-sufficiency strategy based on solar, wind, biomass, geothermal and ocean energy. The government will provide innovation assistance and incentives to start-ups in the areas of green technology and energy efficient infrastructure projects.
5. Skilled Workforce and Technology Knowledge
Réunion has a highly skilled, polylingual and technical workforce educated in the French education system. The Reunion University and several research institutions can potentially add a steady supply of qualified professionals in environmental protection, engineering, marine sciences and ICT.
Availability of Raw Materials and Supporting Factors
- Agriculture: The island is characterized by the production of sugarcane, vanilla, coffee, tropical fruits and spices, providing a solid base for food processing and export-oriented agribusiness.
- Marine Resources: An Exclusive Economic Zone, the zone is the source of many opportunities in fisheries, aquaculture and marine biotechnology.
- Renewable Energy: Abundant solar, wind, and geothermal resources are ideal for solar, solar, wind, and bioenergy projects.
- Tourism assets: Réunion's volcanic topography, beaches, rainforests and UNESCO World Heritage sites attract visitors and make it a popular destination for ecotourism and adventure tourism.
- Human capital: A young, skilled, multilingual workforce with skills in technology, healthcare and services.
Practical Project Ideas
- Agricultural processing and special food production
What: Sugar refining, vanilla and spice processing, fruit drying and packaging, organic food production, coffee roasting.
- Renewable and green energy projects
What: Solar and wind power plants, biomass power plants, waste-to-energy systems and ocean thermal power plants.
- Tourism and catering projects
What: Eco resorts, adventure tourism, spas, luxury hotels and cultural heritage experiences.
- Maritime industries and the blue economy
What: Deep sea fishing, aquaculture farms, marine product processing, marine biotechnology, ocean shipping services.
- Information and communication technology (ICT)
What: Software development, cloud computing, cyber security, data centers and e-government solutions.
- Intelligent building and infrastructure
What: Environmentally friendly building materials, smart apartments, public infrastructure projects.
Government Support and Incentives
The business ecosystem of Réunion benefits from a mix of some French national policies and EU regional develops programs which encourage innovation and sustainability. The main incentives are:
- Investment and assistance for industrial agricultural and renewable energy projects.
- Tax reductions and exemption under the French foreign administration investment law.
- Research and innovation funding for technology based start-ups and for environmentally friendly project.
- European structural funds for Infrastructure Environmental Protection and Entrepreneurship programs.
- Low-interest financing from French development banks (AFD Bpifrance)
- Public-private partnership in the energy transport and waste sectors.
Réunion represents an outstanding example of economic growth based on sustainability and innovation in the Indian Ocean region. The island combines European-level infrastructure and access to the African market, while showcasing commitment to renewable energy, and high availability of skilled labor, making it an unbelievably enticing investment location for entrepreneurs around the world.
In addition to green energy, agro-processing, tourism, ICT, or marine industries, Réunion is here to provide a safe and facilitating environment for developing businesses. Entrepreneurs focusing on innovation and sustainability within a regional context will find Réunion to be not just a small island marketplace- it is a strategic platform straddling Africa, Europe, and Asia & it is the real gateway for the next wave of sustainable business in the Indian Ocean.
