The economy of Comoros is a small and underdeveloped island economy. It is highly dependent on foreign aid and remittances from the Comorian diaspora, and has limited natural resources. The country’s main industries are fishing, tourism, and agriculture. The main exports are vanilla, ylang-ylang (a type of essential oil), cloves, and copra (dried coconut meat).
According to cheeroutdoor, Comoros has a population of approximately 830,000 people who mainly live in rural areas across the three islands that make up the country. Most of the population is involved in subsistence farming as well as fishing for their livelihood. Despite its limited resources, Comoros has managed to achieve some economic growth over the last few years due to increased foreign investment and improved access to finance for small businesses.
The government of Comoros has implemented various policies to boost economic growth such as providing tax incentives for foreign investors; reducing taxes on certain goods and services; encouraging infrastructure development projects such as roads or ports which could improve connectivity between regions within Comoros or with other countries; increasing access to finance for small businesses; promoting exports through trade agreements with other countries; and improving access to education and healthcare services which could help reduce poverty levels in the country.
The government also provides support through social safety nets such as food subsidies or cash transfers which help families cope with economic hardship. In addition, they have implemented a number of initiatives aimed at helping vulnerable groups such as women or youth gain access to employment opportunities or start their own businesses.
Overall the economy of Comoros is still developing but it has seen some positive developments over recent years due to increased foreign investment, improved access to finance for small businesses, increased government support through social safety nets and various initiatives aimed at helping vulnerable groups gain access to employment opportunities or start their own business ventures.
According to COUNTRYAAH, the Comoros are a poor agricultural country. There are serious problems with, among other things, overpopulation, chronically high unemployment, emigration of highly educated to the Gulf states and a poorly developed transport network. A chronic deficit in the state budget and in the trade balance in 1991 led to a number of tightening of the economy, including privatization, investment in export industries and cuts in the public sector. The measures had only marginal effects.
In 2014, the government launched a five-year strategy for economic growth. But despite the write-off of the International Monetary Fund and new development plans, the country’s economic conditions are poor.
More than half the population is employed in agriculture, which has a significant element of forage crops, including vanilla (Comoros is the world’s second largest producer), cloves and ilang-ilang (perfume plants), which are grown for export to the developing countries. They also grow cassava and rice and keep cows, goats and sheep, but more than half of food consumption is covered through imports.
Note: the capital city of Comoros is Moroni with a population of 55,900. Other major cities include Mutsamudu (on Anjouan), Fomboni (on Mohéli).
The small industry that exists is also mainly focused on the processing of agricultural products. There are oil and soap industries, vanilla production plants and sawmills in Comoros, abbreviated as COM by abbreviationfinder.org. Imports are dominated by rice, fuel, building materials and medicines. France is the completely dominant trading partner.