Comoros : Country and Foreign Investment
Economy and Currency
This page was last updated on 5 August 2019.
Although the rugged landscape makes farming difficult, agriculture remains the largest component of the economy, with just under half of available land given over to food production. Agriculture, including fishing and forestry contributes 40% to GDP, employs 80% of the labour force, and provides most of the exports.
Income from exports is heavily reliant on the three main crops of vanilla, cloves and ylang-ylang, which is used in perfumery. Remittances from 200,000 Comorans contribute about 25% to the country’s GDP. The economy has grown at rates of 3-4% in the last three years. The currency is the Comoran franc (KMF) which is pegged to the euro at a rate of EUR1 = KMF492.
Recent political instability has restricted economic development of the Comoros, and investment in infrastructure is sorely needed. However, there have been some encouraging signs for the economy in last few years. In December 2012, the IMF and the World Bank's International Development Association supported US$176m in debt relief for the Comoros, resulting in a 59% reduction of its future external debt service over a period of 40 years.
In late 2013, a US-based investment company invested US$200m in a project to explore for hydrocarbons in Comoran territorial waters, the largest financial investment in the country’s history. Tourism has yet to really take off in the Comoros, but with its tropical climate, natural beauty and 400km of coastline, it is a sector with much potential, and one the Government is keen to develop. Indeed, a law on tourism was recently passed by the legislative assembly intended to promote investment in this industry.