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Country name: Union of Comoros
Population: 711,400 (July 2007)
Land Area: 2,235 km2
Official Language: Comorian (Shikomor), Arabic and French
Currency: 1 Comoran franc = 100 centimes
National Holiday: 6th July
Government Type: A Republic divided into 3 islands and 4 municipalities
The Comoros, officially known as the Union of the Comoros, comprises a group of islands in the Indian Ocean, off the eastern coast of Africa on the northern end of the Mozambique Channel between northern Madagascar and northeastern Mozambique. Its nearest countries are Mozambique, Tanzania, Madagascar, and the Seychelles.
The country consists of the four islands in the volcanic Comoros archipelago: Ngazidja (French: Grande Comore), Mwali (French: Mohéli), Nzwani (French: Anjouan). Comoros also claims Mayotte (aka. Mahoré), a neighbouring island in the Comoro archipelago which remains under French overseas administration.
The Comoros has a diverse culture and history, as a nation formed at the crossroads of many civilizations. It has three official languages - Comorian (Shikomor), Arabic, and French, and it is the only state to be a member of each of the African Union, Francophonie, Organization of the Islamic Conference, the League of Arab States and the Indian Ocean Commission, among other international organizations.
At 2,235 km2, the Comoros is the third smallest African nation by area, and one of the smallest in the world, and with a population at 711,400 it is also the sixth smallest African nation by population (though it consequently has one of the highest population densities in Africa). The Comoros is sometimes considered a microstate. Its name derives from the Arabic word qamar ("moon"), as seen depicted on its flag.
Economic growth has been weak and narrowly based, with average annual real GDP growth of 2% over the period 2001-2005, well below the regional average, the IMF observed in October 2006. This poor growth record reflects some of the country's inherent disadvantages, such as the small size of the local market, the very high transport costs and the poor investment climate. Economic activity remains largely confined to subsistence agriculture, production of three export crops, import-related commerce, and government services. Fishing and tourism remain well below potential and the manufacturing sector is virtually non-existent.
With a very narrow export base, the economy is highly dependent on emigrants' remittances, which have financed consumer imports and provided a buffer against terms of trade shocks. Political instability and frequent inter-island tensions that undermined institutional capacity led to a sharp reduction in donor assistance over the last decade. External debt is far above the threshold for the Highly Indebted Poor Countries Initiative (HIPC).
Membership in the franc zone arrangement has contributed to low inflation and limited fiscal deficits. Fiscal policy has been constrained by the large public wage bill, which limits the scope for social expenditure and public investment. Weak fiscal institutions have contributed to the chronic accumulation of expenditure arrears.
In 2005 macroeconomic stability was maintained despite a sharp deterioration in Comoros' terms of trade. Real GDP growth picked up as a result of services and tourism. Inflation was modest and rapid growth in remittances partly offset the sharp deterioration in the external trade balance.
Economic performance worsened in 2006, with a sharp economic slowdown and widening external imbalances. Public finances deteriorated significantly during the run-up to the May 2006 presidential elections. Fiscal revenues declined sharply, in large part due to pre-election governance problems in customs administration and public enterprises. Inter-island coordination of fiscal policy was disrupted and expenditures were higher than expected.
The government in Comoros has been taking steps to remedy the deterioration in public finances and restore inter-island cooperation. A revenue-sharing mechanism was reinforced by ensuring that all revenues are channeled through a single account. The supplementary budget parliament approved in August 2006 contained a range of measures to boost revenues and curtail expenditures. The objective is to limit the full-year primary fiscal deficit to 2,75% of GDP for the year as a whole while paying down the domestic arrears accumulated in the first half of the year.
Comoros remains one of the poorest countries in the world. Economic growth and poverty reduction are major priorities. With a rate of 14.3%, unemployment is considered very high. Agriculture, including fishing, hunting, and forestry, is the leading sector of the economy, and 38.4% of the working population is employed in the primary sector. High population densities, as much as 1000 per km2 in the densest agricultural zones, for what is still a mostly rural, agricultural economy may lead to an environmental crisis in the near future, especially considering the high rate of population growth.
Comoros has inadequate transportation system, a young and rapidly increasing population, and few natural resources. The low educational level of the workforce contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. Agriculture contributes 40% to GDP, employs 80% of the workforce, and provides most of the exports. Comoros is the world's largest producer of ylang-ylang, and a large producer of vanilla.
The government is struggling to upgrade education and technical training, to privatize commercial and industrial enterprises, to improve health services, to diversify exports, to promote tourism, and to reduce the high population growth rate.
The basic features of the Comoro islands are weak and difficult transport links, a young and rapidly increasing population and limited natural resources. Poor education of the population contributes to keeping the economy at subsistence level. Comoros is seeking to upgrade education and technical training, privatize commercial and industrial enterprises, improve health services, diversify exports, promote tourism, and reduce the high population growth rate.
With fewer than a million people, the Comoros is one of the least populous countries in the world, but is also one of the most densely populated, with an average of 275 people per km2. In 2001, 34% of the population was considered urban, but that is expected to grow, since rural population growth is negative, while overall population growth is still relatively high. Major urban centers include Moroni, Mutsamudu, Domoni, Fomboni, and Tsémbéhou.
Major imports include basic foodstuffs, mainly rice, some consumer goods, as well as petroleum products, cement and transport equipment. The main export partners are the Netherlands 35.7%, France 18.2%, Italy 12.7%, Singapore 7.8%, Turkey 4.9%, US 4.5% according to 2006 figures. Imports partners are France 25.1%, the UAE 10%, South Africa 6.5%, Pakistan 6.4%, Kenya 5.1%, China 4.8%, India 4.4% and Italy 4.2%.
Traditionally, France has been the main trading partner for Comoros. The Comoros franc is tied to the euro, previously tied to the French franc. Germany’s trade links with Comoros is minimal.
Real GDP growth has been flat in recent years while inflation rose slightly in 2004. The weak GDP growth of around 2% was primarily due to crop and cattle diseases and to a decline in vanilla production as a result of the collapse in world prices. An increase in inflation to 4.5% was due primarily to higher prices for petroleum products and to buoyant domestic demand fuelled by a surge in private transfers from abroad.
Membership in the Franc zone circumscribes monetary policy and imposes a firm and coherent framework for the operations and management of the Central Bank, including a strict limit on lending to the government. The underdeveloped and uncompetitive financial sector is recognized to be a major constraint to economic growth. Comoros’ single commercial bank appears sound and complies with international operating standards. However, it offers a limited range of services and excludes many economic operators from the financial market
After nearly a decade of political turmoil, significant progress has been achieved with national reconciliation and inter-island cooperation over recent years. Political tensions have obstructed the implementation of coherent policy reforms and severely impeded economic progress, particularly effecting investment, tourism and growth of the private sector. More recently, the authorities adopted IMF recommendations on implementing policies conducive to the restoration of confidence, including revenue-sharing, joint administration of the customs office, and the transfer of spending competencies to the island governments. However, progress on civil service reform, the budget process, and domestic and external arrears reductions has been limited.
Vanilla has been the main export of Comoros and its relatively high quality makes it a reliable source of revenue. However, the competitiveness of its vanilla sector recently suffered under the impact of a decline in international vanilla prices. This decline was a result of the advent of artificial vanilla flavourings, increased competition and a bumper 2004 harvest in Madagascar, the world’s leading vanilla producer. With marketing assistance and increased investment, however, Comoros could aim to take advantage of it relatively high-quality vanilla by targeting a niche market.
Comoros considers the tourism sector to be a potentially important source of higher economic growth. Tourism in the region has generally increased in recent years, except in the Comoros where it has declined. Reestablishing air links, simplifying visa procedures, and promoting the Comoros as a destination for specialized tourism could herald a recovery in tourist arrivals and revive the mothballed hotel infrastructure. In this vein, the authorities highlight the re-opening of a major hotel in Ngazidja and the opening of vacation complexes operated by village cooperatives on the island of Moheli.
Fishing potential in the Comoros could be developed as catch in its territorial waters significantly falls short of that in neighbouring countries. Fishing volume in the Comoros is only 40% of the fishing volume in the Seychelles, and only 15 and 4% respectively of the fishing volumes of Guinea-Bissau and Senegal, where there are much smaller territorial waters. A recent fishing license agreement with the European Union was an important step in this direction and the authorities envisage expanding into fish processing and fish farming.
There is no national newspaper in Comoros; the leading regional paper is Al-Watwan published on Grande Comore; Kwezi is also published on Mayotte. There is a Radio Comoros and a Comoros National TV both providing nationwide services.
Quelle: Ghorfa, Arab-German Chamber of Commerce and Industry e.V.
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