Between 2021 and 2023, capital expenditures by municipalities and intermunicipal bodies in Mayotte surged by more than 169 %, reaching 342 million euros. This spectacular growth places the territory ahead of the average for other overseas departments in terms of per-capita investment.
This momentum, which is necessary to address demographic pressures and the massive need for basic infrastructure, is nevertheless accompanied by a very clear deterioration in financial indicators.
The 2024 report by the Mayotte Municipal Sector Observatory, published by the AFD, paints a mixed picture: a surge in investments is offset by depleted cash reserves, weakened self-financing capacity, and clear risks to the sustainability of local public services.
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Massive investments to address the urgent need for equipment
In the space of a decade, Mayotte has undergone a complete transformation. In 2014, the amount of investment by local governments was half that of the other overseas departments. In 2023, it is superior to them: 1,067 euros per resident against 737 euros elsewhere. This rapid progress reflects the intensified efforts made by the 17 municipalities and the 5 intermunicipal associations of the territory.
This can be explained by several factors: aIncreased access to funding, capacity building for local teams, and strengthened support from the Department and national and European partners.
Expenditures are largely directed toward the critical infrastructure. First of all, the schools still account for nearly one-third of municipal investments. It must be said that the challenge is a major one: Each year, an additional 1,500 students must be enrolled in school.
The creation of new classes, the renovation of existing buildings and the modernization of equipment represent a construction site permanent positions for municipalities. Other priority positions—such as the road maintenance, the stormwater management, the’street lighting, or even the elimination of substandard housing – also account for a significant portion of the budgets.
The Growing but Still Fragile Role of Intermunicipal Bodies
One of the most significant developments in the 2020–2026 term is the actual emergence of intermunicipal bodies. Established only starting in 2016, the Mayotte Intermunicipal Public Establishment (EPCI) have now reached a milestone: in 2023, they alone accounted for one-third of the municipal sector’s investment.
This change in scale is based on the gradual restructuring of services, the’purchase of equipment, and the formalization of large-scale projects, often with an economic or environmental focus.
It addresses topics that had not been explored much at the local level until then:
- beach development,
- construction of tourist information centers,
- local markets,
- central kitchens,
- or fishing piers.
In the transportation sector, the Caribus Project driven by the CADEMA illustrates the gradual development of strategic skills.
However, this growth remains fragile: the fact that the EPCIs are still in their early stages means that significant resources are still being allocated to internal working conditions (facilities, software, recruitment).
A financial system on its last legs
This level of investment comes at a cost.
At the January 1, 2024, the municipalities' financial indicators are alarming. The working capital presents a deficit equivalent to 9 % some operating revenue. The cash flow is at its lowest level in 10 years.
According to Stéphane Meunier, head of the Accounting Management Department in Mayotte, «Every month, about 20 budgets face difficulties serious enough that we are forced to hold up invoices to ensure that salaries are paid.».
This tension can be explained by a combination of several factors.
The amounts invested have doubled, but funding methods have not kept pace: the cash flow ratio have gone from 19 % to 8 % between the 2014–2021 and 2022–2023 periods, and the use of the’loan was halved (7 million euros per year, compared with 14 million euros per year previously). The’inflation It also caused discrepancies between projected costs and actual results, leading to delays or cancellations of projects.
Risk of Disruption for Future Projects
This situation jeopardizes the continuation of the momentum that has been built. If cash flow pressures persist, municipalities could be forced to freeze some of their investments. This would mark a return to the situation of 2014–2018, when it was impossible to finance construction projects due to a lack of sufficient liquidity.
This risk is all the more real given that the equipment produced— including schools – now generate significant operating expenses: food service, maintenance, staff, etc.
The challenge is therefore twofold: maintain the ability to invest, while anticipating recurring expenses what the infrastructure in operation. Without rigorous financial planning, the risk of a scissor effect is very real.
What are the possible outcomes for 2025–2026?
Given this situation, several possible courses of action are emerging for the final two years of the term. First, the Expanding the engineering teams, both internally and externally, is essential for speeding up the preparation of applications, improving the quality of financing plans, and reducing processing times.
Next, the’resource optimization requires better management of grants: according to Hairoudine Anzizi: «Advances are sometimes not requested because there is no follow-up.». Assigning a specific staff member to handle collections could address this vulnerability.
Finally, Management tools need to be improved : dashboards, cost accounting, cash outflow planning, consolidated purchasing, and management dialogue with departments are all tools for restoring balance.
Resource to consult
Mayotte Municipal Sector Observatory 2024 – AFD
The investment effort undertaken in Mayotte between 2021 and 2023 is remarkable for its scale and purpose. It addresses an undeniable need: to provide the island with basic infrastructure amid a social and demographic crisis. However, this laudable ambition rests on a financial foundation that is currently fragile.
The second half of the term will require striking the right balance between ensuring the continuity of projects, consolidating revenue, and controlling expenditures. Restoring the municipal sector’s ability to generate its own funding will determine its capacity to continue its development.