Investment climate of Comoros

Economy

Comoros achieved economic growth of under 1.1% in 2015 because of the prevailing energy crisis. With Saudi Arabian budget support and Chinese technical assistance to the energy sector and the resumption of electricity generation the economic performance is projected at around 4.1% in 2016 and 2017.Agriculture, including fishing, hunting, and forestry contributes 40% to GDP, employs 80% of the labour force, and provides most of the exports. The country is not self-sufficient in food production hence the high bill for food imports.

Why invest in Comoros?

  • The islands have achieved political stability
  • The islands have tourism potential;
  • There are potentially huge offshore energy reserves;

Political

After a period of political instability that included a number of coups Comoros embarked on constitutional reform journey. Constitutional reforms that were adopted in 2009 represented a turning point in the development of the Comoros, transforming relations between the islands, significantly reducing tensions, and improving the prospects for greater stability. The amendments adjusted the autonomy of the islands, converted the island presidents to governors, and reaffirmed the unity of the state and the role of the federal government.

Population

According to the World Population Review Comoros’ population is estimated at 825,430 with growth rate of 2.27% per year. More than half of the population (53%) is younger than 20 years of age. According to the most recent Household Budget Survey for 2014, 18 percent of the population lives below the international poverty line of US$1.9 per capita per day

Urbanisation

According  to the World Population Review about 1/3 of the population live in urban areas with urban population annual rate of change estimated at 2.67% for the period  from 2010 to 2015.

Doing business in Comoros

The highlights of World Bank score of doing business in Comoros   are summarised as follows;

Topics World Bank  2017 Rank World Bank 2016 Rank Change in Rank
Overall 153 152  

-1

Starting a Business 161 157  

-4

Dealing with Construction Permits 92 85  

-7

Getting Electricity 135 133 -2
Registering Property 90 120  

30

Getting Credit 118 109  

-9

Protecting Minority Investors 145 145
Paying Taxes 168 165 -3
Trading across Borders 107 106  

-1

Enforcing Contracts 179 179
Resolving Insolvency 169 169

The government is the in process of creating conducive environment for doing business.

Credit Rating

Not rated.

Remittances

The Central Bank of the Comoros regulates and supervises the entire financial sector. It manages foreign exchange control, and capital transfers need prior authorisation from various government agencies.

Arbitration and disputes

In July 2015 The Comoros deposited the signed instrument of accession to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the New York Convention.

Key development challenges

  • Poorly diversified economy;
  • Implementing policies that will ensure food security;
  • Electricity shortages;
  • Inadequate transportation and other public infrastructure links;
  • Low educational level of the labour force and
  • High unemployment.

Corruption index

Comoros is number 153 least corrupt nation out of 175 countries and scored 24 out of 100 according to the 2016 Corruption Perceptions Index reported by Transparency International.

Security

Crime rate and threat from terrorism are low.

Unemployment and skilled labour

According to the CIA World Fact book, the unemployment rate was estimated at 6.5% in 2014.

Attitude to Foreign Direct Investment

The new investment code approved in 2007 is more liberal and attractive than the previous one. It provides investors with a conducive legal framework, the free movement of capital and profits and equal rights for foreign and national investors. The National Agency for Investment Promotion (ANIP) is the main institution in charge of liaising with investors and centralized approaches. Its role is to serve as an intermediary to the government with investors to carry out business registration procedures and issue special permits.

Restrictions on Foreign investment

The restrictions are quite few exception those in national interest.

Intellectual Property (IP) Rights.

The Union of the Comoros became a full member of OAPI (African Intellectual Property Organisation) on the 25 May 2013. All trademarks filed with OAPI on or after 25 May 2013 will be effective in the Union of the Comoros. Existing OAPI registrations filed before 25 May 2013 will extend to the Comoros automatically upon their next renewal following the effective date, and will be effective from that date of renewal. Trade mark owners wishing to extend existing OAPI rights to the Comoros before their registrations fall due for renewal; will be able to do so in accordance with the provisions of the OAPI Extension Regulation.

Natural Resources

Minerals and petroleum

 

Information about Investment climate in Comoros has been summarized as follows;

Development partners of Comoros
Double taxation Treaties in Comoros
Exports of Comoros
International Trade Agreements with Comoros
Investment Authority of Comoros
Investment Incentives in Comoros
Investment guarantees in Comoros
Investment opportunities in Comoros
Natural resources in Comoros
Trading partners of Comoros
Shipping Status

 

Sources of information

http://www.worldbank.org

www.state.gov

www.afdb.org/

www.cia.gov

 

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