The World Bank in Comoros

Azali Assoumani was re-elected for a third term as President of the Comoros Union in January 2024 following the first round of presidential elections on January 14^th, 2024. Elected in 2016, after ten years of absence from the political scene, Azali Assoumani returned and won the last three presidential elections (2016, 2019, 2024). On July 1, 2024, President Assoumani appointed a new cabinet, comprising 15 ministers, two of whom are women, and one leading a new ministry in charge of gender promotion. Parliamentary elections were held in January 2025 to renew the National Assembly for a five-year term. President Azali Assoumani's party, the Convention for the Renewal of the Comoros (CRC), secured an absolute majority, winning 31 out of 33 seats. A 2023 bill passed by 21 deputies increased the number of constituencies from 24 to 33 to enhance representation. Grande Comore now has 16 seats, Anjouan 12, and Mohéli 5. On February 16, 2025, municipal elections were held to renew local councils. The CRC dominated, winning most of the 54 constituencies, including the capital, Moroni.

Economic Overview
In 2024, growth rose to 3.4%, up from 3% in 2023, driven mainly by the services sector, while industry grew at 3.8% but had limited impact due to its small GDP share. Construction benefited from public investments in projects like the Galawa Hotel and El-Maarouf Hospital. Private consumption was supported by lower inflation, which averaged 5%, but a widening trade deficit offset some gains. The fiscal deficit expanded to 3.9% of GDP due to higher spending, with revenues stable at 16.6% of GDP, though corporate and consumption taxes declined and customs revenue improved, underscoring the need to address impending WTO-related customs losses. Public debt rose to 36.8% of GDP but remained sustainable. Domestic credit stayed at 24.4% of GDP, shifting toward public sector borrowing, which rose by 8.2%, while private sector credit growth slowed to 1.6%, and financial sector vulnerabilities persisted due to high nonperforming loans of around 17%. The current account deficit widened to 3.2% of GDP as goods exports fell by 5%, though remittances grew nominally but declined relative to GDP.

Growth is projected to reach 4% in 2027 for only the third time since 2010, driven by strong private consumption as inflation stabilizes at 3% and public investments under Plan Comores Emergent 2030, including preparations for the 2027 Indian Ocean Island Games, which should boost tourism. However, worsening terms of trade could dampen growth, though poverty is expected to decline to 36% from 38%. Hosting the Games presents a tourism opportunity but requires prudent fiscal management to avoid wasteful spending, given limited fiscal space and high debt risks. Reforms to enhance revenue, such as reducing tax exemptions, improving SOE governance, and increasing public investment efficiency, are critical. The current account deficit is set to widen in 2025 due to energy-related imports, 0.3% of GDP for generators to support energy infrastructure, while tourism gains from the Games may be offset by rising goods imports, exacerbating external vulnerabilities. Key risks include SOE contingent liabilities, geopolitical tensions, and climate shocks.

Social Context

Comoros is densely populated, with approximately 465 inhabitants per km² and 53% of the population under 20 years of age. High population density places intense pressure on natural resources and the environment. The country’s location and topography are among the most climate-vulnerable in the world, and 54.2% of the population lives in at-risk areas. Some 45% of the population live just below the national poverty line. Comoros children can expect to complete 8.4 years of schooling by 18 years of age. Chronic malnutrition leads to stunting in 31 of 100 children. The social safety net system in Comoros is progressing, but its impact is limited due to inadequate coverage.

Last Updated: Apr 09, 2025

The World Bank Group’s engagement in Comoros is guided by the Country Partnership Framework (CPF) for 2020-2024, developed in consultation with the government, civil society, the private sector, women and youth associations, and representatives from across the islands. The CPF aims to support the country’s efforts to build resilience, strengthen human capital, and foster inclusive growth, as well as address the urgent need arising from the impacts of COVID-19 and Cyclone Kenneth.

Aligned to the Plan for Emerging Comoros, the country’s medium-term strategy to cover the period 2020-2030, the CPF’s four objectives also reflect the recommendations drawn from the Comoros Systematic Country Diagnostic:

·               Building human capital

·               Supporting disaster recovery and resilience

·               Improving the business environment and governance

·               Improving connectivity.

This engagement and investment ($300 million) support the country in achieving ambitious goals such as increasing the quality of the Comorian health system, reducing chronic malnutrition rates, increasing access to energy, and promoting Comoros connectivity.

The World Bank is financing 14 projects in Comoros ($314.8 million) including 4 regional operations, in health, social protection, disaster recovery, energy, transport, water, youth entrepreneurship and private sector development, agriculture, climate resilience, tourism, financial inclusion, and statistical development. It has contributed to response plans to recent crises, including the plan to fast-track the country’s recovery from Cyclone Kenneth in 2019, the COVID-19 pandemic, and the war in Ukraine.  

Last Updated: Apr 09, 2025

Disaster management
In December 2024, Cyclone Chido hit Comoros, devastating homes and crops in Anjouan and Mohéli, leaving many without food or shelter. As part of the Regional Emergency Preparedness and Access to Inclusive Recovery Program (REPAIR), Comoros received rapid financial support, enabling timely emergency relief distribution. The Ministry of Finance secured funds within seven days of the withdrawal request and assigned the Disaster Risk Management Agency to lead the response. ARC Ltd, the regional implementing agency for REPAIR, had previously strengthened the agency’s capacity in environmental and social standards, facilitating efficient aid distribution. Comoros provided a detailed loss and damage assessment and an emergency response plan under the REPAIR governance framework. Lessons from this experience are now shaping updates to the framework across all 12 participating countries.

Health and Nutrition
The Comprehensive Approach to Health System Strengthening Project (COMPASS) has helped improve access to quality primary healthcare with over 175,000 people having received health, nutrition, and/or population services through the project. Key milestones have included: the distribution of 38 scholarships for clinical and public health training; the enrollment of 80 health facilities in the Performance-Based Financing Program and the payment of the first subsidies; and supporting 173 community health and nutrition interventions through equipment provision, training of community agents, and promotion campaigns. This activity converges with the social protection sector interventions. The project also supports the enhancement of training curricula for lab technicians and paramedics, and the training of health workers by providing for in-service and pre-service training.

Social Protection
To combat poverty and vulnerability, the World Bank has helped Comoros build a national safety net system and expand its coverage, focusing on resilience, job creation, protection of human capital, women’s empowerment, and economic inclusion while strengthening the crisis response. Coverage of long-term safety net programs has increased from 3% in 2021 to 9% in 2022. The $30 million Shock Responsive and Resilient Safety Net Project, which became effective in February 2023, has kept these efforts alive through its various components and will increase this coverage to 17%.

Over 40,000 households of the three islands have benefited from the social cash transfer through digital payment. For the economic inclusion component of the project: 13,000 households among the most vulnerable segment of the 40,900 households previously mentioned have benefited from income-generating activities support while around 5000 households have participated in productive cash for work program.

The project aims to provide emergency cash transfers and improve the resilience of vulnerable households. By combining income support, behavior change communication, and training, it seeks to protect against severe short-term shocks and build long-term resilience. To tackle intergenerational poverty, the project includes measures such as early childhood development (ECD), parenting practices, nutrition, education awareness, and women’s empowerment, benefiting around 20,000 children under six years old. It focuses on empowering women and youth to reduce existing gaps, particularly in employment, prioritizing women as main cash transfer recipients and supporting female-led income-generating activities.

Agriculture and Food
The Integrated Development and Competitiveness Project (PIDC), completed in 2024 contributed to creating jobs, mobilizing private capital, increasing revenue for beneficiary MSMEs and cooperatives, and boosting agricultural production for beneficiaries. By implementing value chain and firm-level activities, the PIDC strengthened its efforts to foster private-sector-led growth, reduce poverty, and empower the poorest and most vulnerable segments of the population. Project achievements include:

·       A 35.6% increase in revenue was achieved by beneficiary young entrepreneurs, MSMEs, and cooperatives supported through the Business Plan Competition. They received technical assistance, grants, and matching grants ranging from $6,000 to $80,000.

·       1,772 full-time equivalent jobs were created.

·       39.2% increase in the volume of agriculture production sold by project beneficiaries.

·       $8.2 million in private capital was mobilized.

·       12 multi-service platforms were established and strengthened to support the agriculture and livestock sectors and 23 agriculture warehouses were developed.

·       33.86% increase in the yield of vegetable and food crops.

·       30.31 km of rural roads were rehabilitated fostering market connectivity. 87 MSMEs and cooperatives were supported through the business plan competition, 46% being women, and 99 young entrepreneurs receiving financial and technical assistance.

·       Institutional and regulatory capacity building included strengthening the tourism sector and agriculture sectors, and the Investment Promotion Agency and Chambers of Commerce and Agriculture.

·       More than 62,000 project beneficiaries were reached.

The Food System Resilience Program (FSRP-KM), active since September 2023,  addresses food security in Comoros, supporting 150,000 people, including 60,000 women. It strengthens the national food systems resilience and the country’s preparedness for food insecurity. The program enhances access to improved agricultural inputs (seed, fertilizers, animal feeds) and services (extension, training, phytosanitary/veto); promotes sustainable and resilient landscape and watershed management; resilient fisheries by improving productivity and value-chain improvement together with strengthened fisheries governance; climate change adaptive and resilient coastal and marine resources management; research and innovation that can deliver climate-smart solutions into the hands of farming communities.

Key achievements include distribution of 293,242 high-yield, disease-resistant cassava cuttings and 206,254 nutritious, orange-fleshed sweet potato vines. These efforts aim to boost agricultural production in key areas and help communities vulnerable to malnutrition, benefiting around 700 farmers.

Additionally, 200,000 banana vitro plants are being acquired in partnership with the International Institute of Tropical Agriculture (IITA) to further strengthen resilience in farming. In the livestock sector, support has expanded through four Rural Economic Development Centers (CRDEs), helping 200 households start poultry farming with essential kits. Scholarships in veterinary and animal production have also been awarded to build local expertise. Natural resource management efforts are progressing, with nine water tanks (totaling 7,818 m³ in capacity) rehabilitated, ten water user associations established, and 25 hectares of watersheds and mangroves reforested.

Another key milestone is the General Census of Agriculture (RGA), where the community survey has been completed. With technical support from the FAO, the national statistics agency is ensuring high-quality data collection aligned with international standards. The household survey is set to begin in mid-April 2025. Infrastructure improvements are also advancing, with 9 km of feeder roads completed out of the planned 15 km, and technical studies underway for an additional 38 km. Meanwhile, fisheries initiatives continue, focusing on data collection, mangrove restoration, and training women fish processors on sanitary standards. Following recent floods, the project has shifted efforts to support affected communities while developing a warehouse receipt system to improve private sector access to financing and rice imports storage.

Key policy reforms are also underway, including the revision of the Livestock Code, new fisheries regulations, and feasibility studies for a Collateral Management System (UCCIA) in collaboration with EXIM Bank Comores. Finally, a major achievement is the completion of the Food Security and Nutritional Crisis Preparedness Plan (FSCPP), which provides a strategic framework to strengthen resilience and crisis response mechanisms in Comoros.

Transport
A key World Bank investment in Comoros, the Comoros Interisland Connectivity Projects (SOP1 & SOP2), was approved by the Bank and other development partners including the French Development Agency, the Islamic Development Bank, and the African Development Bank. A major milestone, the rehabilitation of Port Boingoma, was officially launched in September 2024, with work already underway, including the mobilization of equipment and personnel. Once completed, the upgraded port will enhance freight and ferry services, benefiting over 40,000 residents of Mohéli Island. The projects also aim to improve maritime safety and connectivity by developping new passenger boat operations between Chindini/Ouroveni, Boingoma, and Vassy, expected to serve 75,000 passengers annually.

Last Updated: Apr 09, 2025

The World Bank is working in close cooperation with France, the European Union, the International Monetary Fund, various UN agencies, the Islamic Development Bank, the African Development Bank, and the OPEC Fund to harmonize donor efforts in Comoros.

Last Updated: Apr 09, 2025