Economic Resources
Strategic & Geopolitical Value
​
Due to its strategic military use and conservation policies, the archipelago’s economic resources are largely untapped or restricted, with no permanent civilian population since the late 1960s.
​
Although not a conventional "economic resource," the Diego Garcia military base provides immense strategic value:
-
Leased to the UK, and in turn to the United States, generating tens of millions of USD annually (exact figures are classified).
-
The base includes extensive infrastructure, including ports, airstrips, warehouses, and fuel storage, indirectly contributing to the regional economy via logistics contracts, satellite services, and geo-surveillance.
Marine Resources
A. Fishing (Tuna Industry)
-
Primary economic activity: Licensing of tuna fishing to foreign fleets (mainly from the EU and Asia).
-
Controlled by the BIOT Administration, generating an estimated US$2 million to $3 million annually.
-
Fish stocks include:
-
Yellowfin tuna
-
Bigeye tuna
-
Skipjack tuna
-
-
All fishing is regulated by the BIOT's Marine Protected Area (MPA), which bans fishing in most zones except in special permits.
B. Marine Biodiversity (Potential Blue Economy Assets)
-
One of the most pristine coral reef systems on Earth (including the Great Chagos Bank, the world’s largest coral atoll).
-
Potential (currently restricted) for:
-
Bioprospecting (marine genetic resources for pharmaceuticals or cosmetics).
-
Scientific research licenses.
-
Courtesy: Clément Siatous
Land-based Resources (Limited)
A. Coconut & Copra (Historical)
-
Until 1973, copra (dried coconut meat) was produced on plantations managed by the Chagos-Agalega company.
-
19th–20th century economy of the archipelago was almost entirely based on plantation labor (largely by indentured workers from Mauritius and Seychelles).
B. Guano and Sand (Minimal)
-
Small historical use of guano (bird droppings used as fertilizer) and sand extraction, no longer practiced due to ecological protection.
Infrastructure & Services
(Restricted to Diégo Gardia)
A. Military Contracting & Support
-
The U.S. military base at Diego Garcia supports:
-
Civilian contractors (including logistics, cleaning, catering, and engineering).
-
Service industries worth hundreds of millions USD over decades.
-
These are not integrated into a local economy as there is no local population.
-
B. Transport and Fuel Storage
-
Diego Garcia functions as a logistical hub in the Indian Ocean.
-
Large-scale fuel storage supports U.S. and allied naval operations, with potential civilian spin-off value if future demilitarization occurs.
Environmental Conservation
as an Economic Resource
A. Marine Protected Area (MPA)
-
Covers over 640,000 square kilometers of ocean.
-
Although controversial (used to block resettlement), the MPA creates potential for:
-
International conservation funding
-
Marine carbon credits
-
Scientific tourism
-
UNESCO World Heritage status if governance is restructured
-
Future Resources (Post-Resettlement)
A. Eco-Tourism
-
High-end, low-impact tourism (like Seychelles and Maldives model)
-
Diving, birdwatching, historical-cultural tourism (e.g., old plantation ruins, Chagossian heritage)
B. Renewable Energy
-
Solar and ocean thermal energy potential due to isolation and sunlight levels
C. Biotech & Marine Research
-
Deep-sea research stations
- Marine biotech labs
-
University-affiliated fieldwork centres
In a Nutshell
The Chagos Archipelago's economic future will depend on the Resettlement of the Chagossians, as well as:
-
Solutions to Geopolitical disputes
-
Military restrictions, and
-
Environmental protections
-
Ecological preservation commitments
-
Mauritius' capacity to balance development and conservation
-
Ecotourism
-
Sustainable fisheries
-
Scientific outposts and research tourism