COMOROS

COUNTRY OVERVIEW

LOCATION AND SIZE.

Comoros is comprised of 3 islands that are part of a 4-island archipelago in the Mozambique Channel. The fourth island, Mayotte, is still a dependency of France. The islands lie between the northern tip of Madagascar and the African mainland. The archipelago, formed by the tips of a volcanic mountain range rising from the Mozambique Channel, stretches over 300 kilometers (186 miles) from north to south. Comoros has a land area of 2,170 square kilometers (838 square miles), making it slightly larger than 12 times the size of Washington, D.C. The main island, Grande Comore (locally known as Ngazidja but also called Njazidja), is geologically the youngest. It measures 60 kilometers (37 miles) from north to south and 20 kilometers (12 miles) from east to west. Its most prominent geographical feature is Mount Kartala (2,361 meters/7,746 feet), an active volcano which smokes and bubbles continuously on Grande. The capital, Moroni, is located on Grande Comore. The other 2 smaller islands are Anjouan (Nzwani) and Mohéli (Mwali). Anjouan is the most topographically varied, with steep coastlines and deep valleys. Its highest peak, Mount Ntingui, rises 1,595 meters (5,233 feet). Mohéli, on the other hand, is the smallest, least populated, and least developed island. The total coastline of the islands is 340 kilometers (211 miles).

POPULATION.

The population of Comoros was estimated at 596,000 in July 2001, up from 479,600 in 1994. The nation has a young population; the proportion of older people (65 years of age and above) was estimated at 2.9 percent in 2001, while the 0-14 age group was 43 percent in the same year. Comoros is steadily becoming more urbanized, with the proportion of the population living in towns having increased from 29.9 percent in 1994 to 32.1 percent in 1998. The population consists almost entirely of persons of mixed-race, mostly of African, Malagasy, and Arab descent.

French, Comoran, and Arabic are the official languages. Comoran, the main spoken language, is akin to Swahili but has elements borrowed from Arabic. Other languages spoken include Malagasy and Swahili.

Islam, the state religion, is followed by 98 percent of Comorans. Almost all Comorans are Sunni Muslims. There are small numbers of Christians, mostly Roman Catholics of French Malagasy descent.

OVERVIEW OF ECONOMY

The economy of Comoros is limited by low incomes, high unemployment, an inadequate transport system, the nation's isolated location, the absence of any mineral resources, and a heavy dependence on foreign aid. Most of the population relies on small-scale family agriculture for their livelihoods. The industrial sector is very small and relies mostly on construction and electricity and water distribution. The industrial sector also is supplemented by some processing of ylang ylang (a flower used to make perfume) and vanilla. The services sector comprises mostly government employees, with some employment in the tourism sector.

Comoros has suffered continuous political instability since independence in 1975, which has impeded economic progress. Local and foreign businesses are unwilling to invest in the current volatile (unstable) political and business climate. Falling world prices and increased competition in the international market for the principal export commodities of Comoros have contributed to economic decline. Emphasis is currently on containing public sector wage costs to reduce domestic inflation and speeding-up privatization of state-owned enterprises.

The per capita gross national product (GNP) of Comoros was estimated at $370 in 1998 by the exchange rate conversion. Per capita GNP declined in real terms from 1990 to 1997 at an average annual rate of-3.1 percent. Output grew at an almost negligible rate of 0.1 percent per year in the last half of the 1990s, much less than the population growth rate, which was estimated at 3 percent in 2001.

POLITICS, GOVERNMENT, AND TAXATION

The 3 islands that form the present state of Comoros were French protectorates at the end of the 19th century and were proclaimed colonies in 1912. Following a referendum in December 1974, the Comoran Chamber of Deputies unilaterally declared the islands' independence on 6 July 1975. Mayotte, the fourth island in the group, opted to remain a French dependency.

Since 1975 there has been continuous political instability characterized by coups and undemocratic regimes. Recent years have been marked by internal political disruptions, and the islands of Anjouan and Mohéli have attempted to secede.

The constitution of 1 October 1978 was amended in 1983, approved in a referendum, and Comoros became a Federal Islamic Republic. Mayotte was permitted the right to join when it so chose. A new constitution was adopted on 20 October 1996. The constitution stipulates that each of the islands has a council and a governor who is appointed by the president. The president is elected by direct universal suffrage for an unlimited number of 5-year terms.

The president appoints the prime minister, who heads the Council of Ministers. There is a bicameral legislative branch, consisting of a 43-member Federal Assembly, the members of which are directly elected for 5-year terms, and a 15-member Senate, made up of 5 members from each island who are selected by regional councils.

Colonel Azali Assoumani staged a bloodless coup on 30 April 1999. He introduced a new constitutional charter giving himself full legislative and executive powers. The Federal Assembly has not met since the coup. Azali promised that he would serve for 1 year at the time he came to power, but the elections promised for spring 2000 were not held. Assoumani has pledged that elections will take place before the end of 2001, and it is expected that this will herald a reopening of the Federal Assembly.

Comoros had a 1,500-man national army in 1997, the Force Comorienne de Defense (FCD), which was supported by a French military contingent. The size of the armed forces has not changed since the coup. The role of the French has been to exert pressure for a return to democratic rule.

The main political forces are continually fragmenting and reforming, and alliances are based mainly on opportunism. The party of government prior to the 1999 coup was the National Union for Democracy in Comoros (NUDC). Other parties are the Republican Party of Comoros (PRC), the Democratic Front (DF), and the Movement for Socialism and Democracy (MSD). These parties are now dormant. They are expected to come to life only when the military government sanctions campaigning for the elections expected in late 2001.

Previously the island governors undertook tax collection, but it became a federal responsibility under a 1983 constitutional revision. Wage and salary earners were taxed at a maximum rate of 15 percent in 1987; however, only government employees appear to pay tax, and there has been no attempt at income tax reform in subsequent years. Tax rates have ranged from 17 percent on consumer goods to 60 percent on building materials and cars to 200 percent on luxury goods. Import and export licenses are required but are usually limited to a few favored firms. Tax revenue as a share of expenditure increased from 33 percent in 1994 to 54 percent in 1998, implying an improved ability to meet public sector expenses without relying on aid from overseas. The total tax revenue share of the gross domestic product (GDP) also increased from 13 percent in 1994 to 15 percent in 1998.

The overall budget deficit in 1998 was estimated at US$8.4 million, equivalent to 4 percent of the GDP. The nation's external debt at the end of 1997 totaled US$197.4 million, and the cost of debt servicing was about 10 percent of the value of exports in 1998, or slightly below the 15 percent average for African nations. The relatively low debt-servicing ratio means that Comoros has a greater availability of foreign exchange with which to purchase imports.

Comoros is a member of several international organizations. These include the Indian Ocean Commission (IOC), which is dedicated to regional cooperation; the Common Market for Eastern and Southern Africa (COMESA), which aims at reducing barriers to trade and the movements of labor and capital; and the Franc Zone, which pegs the currency to the French franc.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Comoros has poorly developed infrastructure. The transport system is particularly limited. In 1996, it was estimated that there was a total of 880 kilometers (547 miles) of highways, 673 kilometers (418 miles) of which were paved. There are no railways. Prince Said Ibrahim Airport is the international air terminus near Moroni. In 1996, it handled 92,000 passengers.

There were 75,000 telephone main lines in 1997 and 100 fax machines in 1995. There were 36 post offices in 1993. Comoros does not have any local newspapers; the few that are read are circulated from Madagascar. The U.S. State Department noted that there were about 5 independent local television stations in 1998. The CIA World Factbook estimated that the country only had 1,000 televisions in 1997. There were 90,000 radios in the country by 1997, with 1 government-run station, Radio Comoros; an opposition station, Tropique; and about 20 other regional stations. The government introduced Internet service in 1998 and there were 800 Internet users by 2000.

In 1981, Comoros had 236 primary schools, 1 teacher training college, and 2 technical schools. In 1998, there were no universities, and the public schools on Grand Comore were closed for most of the year because of civil unrest.

Work began in 1985 on a 4,500-kilowatt hydroelectric dam on Anjouan. In 1998, 15 million kilowatt hours (kWh) were generated. Fossil fuels currently generate 87 percent of electricity, with the remaining 13 percent provided by hydroelectricity.

ECONOMIC SECTORS

Agriculture (including hunting, forestry, and fishing) contributed 40 percent of the GDP in 2000. About 74 percent of the workforce are employed in this sector. Agriculture accounts for more than 98 percent of total exports. The principal cash crops are vanilla, ylang ylang, cloves, and copra (dried coconut flesh).

Industry (including manufacturing, construction, and power) contributed 4 percent of the GDP in 2000. The industrial sector employs 6 percent of the workforce. The manufacturing sub-sector is the largest contributor to the industrial share of the GDP. Manufacturing in Comoros is primarily comprised of agro-processing industries, with vanilla and essential oils as their main products. Energy is derived from woodfuel (78 percent) and thermal installations.

The service sector contributed 56 percent of the GDP in 2000 and employs approximately 20 percent of the workforce. Despite political instability, there has been some growth in tourism leading to expansion in retailing, catering, and hotel activities.

AGRICULTURE

The chief agricultural export product used to be sugar, but now vanilla, copra, maize, cloves, and essential oils (citronella, ylang-ylang, and lemon grass) have gained increasing importance. Crops that are mainly for domestic consumption include cassava, taro (a tropical root crop), rice, maize pulses, coconuts, and bananas. Almost all agricultural production takes place on small family farms, with tilling, weeding, and harvesting undertaken by hand. The success of the harvests heavily relies on rainfall, which is generally adequate and regular. From 1990 to 1996, the real GDP of the agricultural sector declined at an average annual rate of-0.7 percent, mainly as a result of political instability that discouraged investment and poor progress with economic reforms.

In 1995, 9,000 hectares (22,240 acres) of Comoros was forestland, or about 4 percent of the total land area. The shortage of cultivable land, the pressure to increase ylang-ylang production, and the demand for woodfuel are all contributing to deforestation at a rate of 6 percent a year. At present the government has no policies to combat deforestation.

Fishing is small-scale and is accomplished without modern equipment. The catch was estimated at 13,200 metric tons in 1995.

INDUSTRY

Industry comprises mostly construction and the provision of electricity but also includes the processing of spices and extraction of perfume from flowers. The construction sector consists of private sector enterprises and is very reliant on conditions elsewhere in the economy. Spurts in tourist activity, for example, lead to increased hotel and dwelling construction. International construction companies undertake most large construction projects (such as highways, ports, and modern hotels). The amount of agricultural processing has not expanded in recent years, mainly because low prices offer little incentive to growers to invest in new planting and increase output.

Owing mainly to a sharp rise in construction activity, industrial GDP increased at an average annual rate of 5.7 percent from 1990 to 1996. Industry's contribution to the GDP has subsequently contracted, providing 4 percent of GDP in 2000, down from 6.0 percent in 1994.

SERVICES

Service is now the largest sector of the economy in terms of output, contributing an average of 48 percent of the GDP from 1994 to 1998 and 56 percent by 2000. However, only 20 percent of the workforce is employed in services. The service sector generates the highest incomes in Comoros, and earnings are particularly high in government service and tourism.

The tourism industry was undeveloped at independence and still has made only modest progress towards its potential. The major hindrance has been the lack of political stability, which clearly has discouraged visitors. Fortunately, the regular unconstitutional changes of government have not resulted in any serious problems for tourists who have visited the islands. The bigger issue is that foreign investment in hotels and resorts has been discouraged. Nevertheless, a number of development projects have been completed, and there has been some recent rise in tourism receipts. In 1996, there were 23,775 tourist arrivals by Air Comoros and receipts totaled $9.1 million.

INTERNATIONAL TRADE

Comoros has had persistant trade deficits, which are covered by foreign aid, most of which comes from France. Merchandise export earnings in 1999 were $11 million. (The World Factbook estimated that exports reached US$7.9 million that same year.) The bulk of the exports were ylang-ylang essence, other essential oils, vanilla, cloves, copra, and other agricultural produce. The most important export earner is vanilla, although there is yearly variation depending on the success of the harvests. Most exports go to France (35 percent) with Germany, the United States, Singapore, and Mauritius also providing important export markets.

Imports include rice and other foodstuffs, petroleum products, consumer manufactures, and motor vehicles. In 1999, imports were valued at $48 million. (The World Factbook estimated that imports reached US$55.1 million that same year.) Most imports come from France with Pakistan, South Africa, Kenya, the United Arab Emirates, and Belgium also supplying significant quantities.

MONEY

Comoros is a member of the Franc Zone, which it joined in 1976. The national currency, the Comoran franc (KMF), is pegged to the French franc and is fully convertible. This arrangement has provided considerable advantages in terms of exchange rate stability and low inflation, but the Franc Zone has also placed restrictions on public sector budget deficits. Some of the stability associated with Franc Zone membership was undermined by a 50 percent currency devaluation that took place in January 1994. Now that France is a member of the European Monetary Union (EMU), the peg to the French franc also implies a peg to the euro.

POVERTY AND WEALTH

With the low price of basic commodities in Comoros taken into account, per capita GDP was estimated at

__BODY__,398 ( purchasing power parity (PPP), 1998 est.). By 2000, the World Factbook estimated that the GDP per capita (PPP) had sunk to US$720. Together with a life expectancy of 60 years, an adult literacy rate of 80 percent, and an enrollment ratio in all levels of education of 39 percent, Comoros was placed by the United Nations (UN) in the group of countries with medium human development. Comoros, however, is close to the bottom of the ranking of those in this group.

There are no figures for the percentage of the population below the dollar-a-day poverty line, which is defined as not having enough income to provide the barest minimum of food, shelter, and clothing. The indicator for children judged underweight at age 5 would suggest that around 30 percent of the population are below the poverty line. Most of those in poverty are members of rural families who must rely on small-scale family farms for their livelihoods. These families are unable to increase their incomes as they are unable to afford investments in mechanization, fertilizers, insecticides, and improved seeds that would boost their output. Even in the main towns, electricity and the piped water supply is erratic. In the rural areas electricity and plumbing are practically nonexistent; lighting is by small paraffin lamps with wicks, and water is obtained from wells. There is some septic tank sewage disposal in the towns, but in the rural areas people rely on pit latrines.

WORKING CONDITIONS

The workforce in 1996 numbered 286,000. About 74 percent of this labor was engaged in agriculture. The unemployment rate was 20 percent in 1996. Comoros has a national labor union, the Union des Travailleurs des Comores (Union of Comoran Workers, UTC), which negotiates to regulate the working conditions. Implementation, however, is very ineffective. There are no official welfare programs, despite the high level of unemployment. Those without employment rely on support from their families or charity, and in the urban areas many try to earn what they can from casual hawking, portering, and scavenging.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1841. France begins the process of occupation and colonization of the islands, which were formerly an autonomous sultanate.

1909. The islands are made a dependency of Madagascar (also a French colony).

1940. With France occupied by Germany, Britain assumes administration of the islands.

1946. Comoros is returned to France and granted administrative autonomy as an overseas territory.

1973. France agrees to independence within 5 years.

1974. In a special referendum, all of the islands except for Mayotte (which remains as a dependency of France) vote for independence.

1975. The Chamber of Deputies votes a unilateral declaration of independence and proclaims the Republic of Comoros, with Ahmed Abdallah as president.

1975. President Abdallah is overthrown in a coup led by French mercenary Bob Denard, who installs Ali Soilih, the leader of a 4-party coalition known as the National United Front (NUF).

1975. The National Assembly is dissolved.

1975. Island of Mayotte rejects union with Comoros in 2 referenda.

1975. French estates in Comoros are nationalized, and French officials are repatriated.

1976. Comoros joins the Franc Zone, with its currency fully convertible and pegged at a fixed rate to the French franc.

1978. Soilih is ousted in a coup led by Denard. Former president Ahmed Abdallah is installed as leader of the new government and is endorsed as president by an election. The band of 50 mercenaries, headed by Denard, forms a presidential guard and controls the administration. The mercenary presence infuriates other African nations, and Comoros is expelled from the Organization for African Unity (OAU). A new constitution is drafted and approved by 99 percent of the votes. Diplomatic relations with France are resumed. The newly elected Federal Assembly approves the formation of a one-party state. The mercenaries leave and OAU readmits Comoros.

1984. Abdallah is elected for a second 6-year term.

1989. Abdallah is assassinated. Said Muhammad Djohar is named interim president.

1990. Djohar is elected president.

1995. Djohar is ousted by a coup. An interim government rules until scheduled elections.

1996. The election is won by Taki Abdoulkarim's National Union for Democracy in Comoros (NUDC), and Taki is elected president. In May, Taki dissolves parliament and calls for new elections in October. The NUDC obtain 36 of the 43 seats at stake in the elections, which are boycotted by the opposition.

1997. In August, a secessionist movement headed by Abdallah Ibrahim calls for the independence of Anjouan Island.

1998. In March, over 99 percent of Anjouan citizens vote for independence in a referendum. Mohéli Island declares independence. Troops are sent to restore status quo (the normal order).

1998. President Taki dies amid rumors of a political assassination. An interim government is formed under Tadjidine Ben Said Massoude.

1999. Colonel Azali Assoumani takes power through a coup and imposes military rule.

2001. A new constitution and new national government are established.

FUTURE TRENDS

The future of Comoros is clouded by uncertainty. There is little doubt that the 2 smaller islands, Anjouan and Mohéli, would like to enjoy the prosperity and stability of Mayotte, the fourth main island in the archipelago, which has remained a French dependency. Mayotte is administered by France, and the island sends deputies to the French National Assembly. Mayotte's population benefits from social security and general development support from France, which has substantially improved the island's income levels. Such status would significantly improve conditions on Grande Comore. However, it would be a bitter blow to the pride of the ruling elite on Grand Comore and to the Organization for African Unity (OAU). Local politicians see more to their advantage in hanging on to power and accumulating wealth through corrupt practices. It remains to be seen whether the OAU will continue to oppose the democratically expressed wishes of the 2 smaller islands for independence and a possible return to French rule.

The economy is totally dependent on agriculture and tourism for the foreign exchange that it requires to import manufactures and fuels. Agricultural output has been stagnant due to soil degradation, and producers of export crops are discouraged by declines in export prices. Tourism is the most promising sector for expansion. With political stability, perhaps secured by a return to French rule, there is little doubt that foreign investment in tourism would expand, and the islands would progress toward the levels of income enjoyed by their French-ruled neighbors in the Indian Ocean, Reunion and Mayotte. The most likely outcome, however, is that there will be some reconciliation between the other islands and Grande Comore, and Comoros will continue to stagnate.

DEPENDENCIES

Comoros has no territories or colonies.

BIBLIOGRAPHY

"Comoros." World Yearbook. London: Europa Publications,2000.

Economist Intelligence Unit. Country Profile: Comoros. London: EIU, 2000.

Economist Intelligence Unit. Country Profile: Comoros. London: Economist Intelligence Unit, 2001.

Hodd, M. "Comoros." The Economies of Africa. Aldershot, England: Dartmouth Publications, 1991.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed October 2001.

U.S. Department of State. Background Notes: Comoros, April 1997. <http://www.state.gov/www/background_notes/comoros_0497.html>. Accessed October 2001.

World Bank. The Comoros: Problems and Prospects of a Small Island Economy. Washington, D.C.: World Bank Group, 1979.

World Bank. World Bank Africa Database 2000. WashingtonD.C.: World Bank Group, 2000.

—Allan C.K. Mukungu

CAPITAL:

Moroni.

MONETARY UNIT:

Comoran franc (KMF). One Comoran franc equals 100 centimes. There are notes with denominations of 25, 50, 100, 1,000, 5,000, and 10,000 francs. Coins come in denominations of 1, 2, 5, 10, and 20 francs and 20 centimes. French francs are also commonly used. The Comoran franc is currently pegged to the euro at KMF 492 = 1 euro.

CHIEF EXPORTS:

Vanilla, ylang-ylang, cloves, perfume oil, and copra.

CHIEF IMPORTS:

Rice and other foodstuffs, consumer goods, petroleum products, cement, and transport equipment.

GROSS DOMESTIC PRODUCT:

US$419 million (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US$7.9 million (f.o.b., 1999 est.). Imports: US$55.1 million (f.o.b., 1999 est.).