Reunion

With exceptional endemic wealth and growing population density, Réunion is a land of contrasts. AFD has been working alongside Réunion residents for 70 years. More than ever before, it is supporting public policies to assist with the economic, environmental and social transitions of the “intense” island.

Context

Réunion is the most populous French overseas department. By 2030, the island will have a million inhabitants.

With an exceptional natural heritage – 40% of the island’s surface area is listed as a UNESCO World Heritage site – Réunion has major assets. It also benefits from a good level of training and qualification, local know-how adapted to the tropical environment and an increasing openness to its regional area.

However, major social, economic and environmental challenges still need to be addressed: the young population is faced with high structural unemployment, and there is a major climate change impact on the island, which is located on the path of cyclones from the South-West Indian Ocean.

Creating new environmentally-friendly growth drivers is one of the keys for the future.

AFD has a longstanding 70-year partnership with Réunion. It supports local public policies, with the aim of defining a sustainable economic model. Thanks to its financing and expertise, AFD provides support to both public and private actors. AFD in Réunion: €1.4 billion of outstanding loans at the end of 2018, with 78% focused on the public sector and 22% on the private sector.

AFD's Réunion office is directly attached to the Indian Ocean regional office.

Our approach

"AFD and Réunion: supporting the island’s economic, environmental and social transitions"

In Réunion, the health and medical-social sector faces a number of challenges. For AFD in Saint-Denis, it is the main area of operation with €220 million invested. The aim is to improve healthcare provision in terms of intake and services to address the island’s demographic and social challenges.

AFD is working to meet the needs of the residents of Réunion. It is contributing to the improvement of hospital services via the renovation of the Réunion University Hospital Center (CHUR), which ranks 11th at national level. It’s also helping finance the creation of a mother and child unit at the Saint Pierre CHUR and the construction of the new West Réunion Hospital Center (CHOR).

We are supporting the medical-social sector by assisting the French Red Cross for the renovation of shelter and care facilities and the Association d’Aide, de Protection de l’Enfance et de la Jeunesse (AAPEJ) to improve reception conditions for disadvantaged young people.

Climate change is a reality for Réunion and its consequences on the local economy are already visible.

In 2018, AFD made its first “climate loans” for climate change mitigation and adaptation in three priority sectors:

Transport, a key issue due to the territorial constraint: we are supporting the North local authority (Cinor) for the construction of the first cable transportation in the French overseas authorities
Energy: to address the issue of energy independence, we have supported two bioclimatic projects to reduce energy consumption in the municipality of Tampon
Waste: to meet the “zero waste” objective of the 5.0 path of the Ministry for Overseas France, we have supported Ileva, the waste management company for the island’s West and South regions to bring its facilities into line with standards.

Climate, biodiversity, natural risks, blue economy, health. The Indian Ocean islands face similar challenges stakes related to inclusive growth.

Building on its presence in the territories, AFD is stepping up its support in the Indian Ocean and creating a regional partnership platform. The objective: take action together to build solutions that provide opportunities for the people of each territory.

We support projects which depend on local expertise, such regional epidemic surveillance, a pooled response to natural risks or adaptation to climate change.