The Union of the Comoros is a small island state found in the western Indian Ocean between Madagascar and the coast of Mozambique. Although small, the country is strategically positioned and has a relatively unexploited economy, coveted biodiversity, as well as numerous natural resources. Among the differing sectoral possibilities for sustainable development are the country’s traditional industries like agriculture, fisheries, and tourism in addition to moderately novel fields- light manufacturings and renewable energy. The agriculture industry, which is one of the most financially rewarding and potentially lucrative, capitalizes on fertile volcanic soils in an area that best suits trade winds. The country has also introduced numerous aggressive potential policies, and by becoming a concomitant in the region’s mainstream economic agreements, the Union of the Comoros has developed considerably as an entrepreneur and investor nucleus for the East African countries.
Reasons to Start Industry in Comoros
Several natural and structural factors make Comoros an attractive location for emerging industries and entrepreneurial development.
1. Strategic Location and Trade Access
Located at the heart of the Western Indian Ocean is a Comorian, an archipelago of islands collectively referred to as the Comoros, it is a bridge to Africa, the Middle East, and Asia markets. The Comoros has a ready market with the member countries of COMESA and the African Continental Free Trade Area as a member, it allows the island to enjoy lower and no tariffs for its exports than the non-member countries trading with the same market. The close proximity to the shipping centers allows the country to export agriculture and marine-based products to other nations.
2. Rich Agricultural Base
The Comorian economy’s foundation is agriculture, which employs almost 60% of the population. The agricultural sector benefits from the tropical climate, with valuable products grown including vanilla, ylang-ylang used in the perfume industry, cloves, and coconuts; the opportunities for obtaining organically certified, natural products and export assembly plant production contribute to the high-value farming for export to be further developed.
3. Abundant Marine and Fisheries Resources
The country’s EEZ, covering an area of 160,000 square kilometers, hosts various profitable fish species, such as tuna and snapper. Consequently, the advantages within the sector include the sustainable fishing to be developed, along with export-oriented fish production on an industrial scale, fisheries from aquaculture due, and to the general rising demand for fish products.
Availability of Raw Materials and Supporting Factors
Comoros offers abundant natural resources and local materials that can support diversified industrial development.
1. Agricultural Products
Vanilla is one of the main products; these islands are its second-largest producer after Madagascar. Cloves are another product that is used as a spice. The perfume industry uses the plant ylang-ylang, and the food industry uses bananas, cassava, coconuts, and many other trees. This allows the island to export raw materials of essential oils, herbal cosmetics, packaged products, and a number of other products with added value.
2. Marine and Aquatic Resources
Because of the rich marine biodiversity, it is possible to open fish processing and seafood packaging facilities, develop aquaculture. At the same time, seaweed and other marine algae can supply the pharmaceutical and cosmetic industry.
3. Human Resources and Regional Connectivity
The relatively low level of income implies the availability of labor; complemented by reports about a very young population and the increasing literacy rates, these imply that the country has not only a cheap but also a relatively productive workforce.
Why Select Industry for Startup in Comoros
Entrepreneurs can identify several promising sectors with sustainable growth potential and export advantages.
1. Agro-Processing and Essential Oils Industry
This way, Comoros is renowned abroad for exports of ylang-ylang and vanilla in an international context due to the high demand for value-added processing, natural fragrances, and organic certification. There is an opportunity for achieving higher margins in the global market.
2. Fisheries and Aquaculture
As global demand for seafood is rapidly growing, Comoros is suitable for engaging in investments in sustainable aquaculture, seafood processing, and cold storage. Implementation of environmentally-friendly fisheries would allow for domestic market access and potential export.
3. Tourism and Hospitality
Development of eco-resorts, boutique hotels, adventure tourism, and various marine activities is promising. The formation of partnerships with international tour operators can quickly raise awareness of Comoros as an emerging ecotourism destination in the Great Indian Ocean.
4. Renewable Energy Projects
Potential investments in solar micro-grids, wind turbines, and geothermal plants also could be the foundation for Tunisia's energy deficit elimination and aligning with the principles of sustainable development.
Market Demand
The economy of the Comoros is in the improvement process, with an expected growth rate of 4-5% per annum as a result of broad development strategies in the fields of agriculture, tourism, and energy. Furthermore, the agricultural sector with high potential is being partially unblocked, linked to increased disposable income of the population, the growing number of diaspora who reinvest in the country and provision of access to electricity.
- Agro-products and essential oils are expected to see strong global demand.
- Eco-tourism and green energy will expand as sustainability becomes a regional priority.
Industrial Modernization
In the past two decades, the Comoros Government has been implementing certain modernization and development programs to diversify the country's economy from the primary sector and introduce innovative digital and green technologies to become more self-reliant. Thus, the Vision Comoros 2030 and few other national projects within the next years, as well turning this country into a small island developing state; industrialization will contribute to state in several ways, and the most perspective ones are presented below:
- Encouraging value-addition in agriculture and fisheries
- Extensive investment in the energy sector particularly Renewable energy
- The proliferation of Industrial clusters and Export Processing Zones
- Support for youth entrepreneurship and Digital start-up
Government Support and Incentives
Lastly, the Comorian government alongside international development partners has established a number of investment and entrepreneurship incentive keeps which as follows:
- This regional and sector focus supports many ways to diversify economic activities, such as:
- Tax exemptions and reduced import duties on industrial equipment and renewable energy projects.
- Land leasing is also supported in the areas designated for the industry and tourism
- Access to funding from the National Investment Promotion Agency.
- Training and entrepreneurship support in the framework of youth development initiatives.
- Simplified business registration and one-stop investment facilitation services.
The support measures are designed to attract investors from the country and abroad to capitalize on such a potential while paying particular attention to such sectors as being sustainable and geared towards export.
Despite its small size, the Comoros Islands have untapped potential for developing high added-value and sustainable ventures. Indeed, its fertile soils, marine resources, central trade position, and improving business climate have combined to create an enabling environment for new generation entrepreneurs. Considering the above sectors are to become national priority sectors, they are likely to transform the economy while safeguarding the Island’s environment and cultural heritage. Should strong resolve continue to drive reform, the active inclusion of its innovative youth, and solid regional and global partnerships, the Union of Comoros is poised to become a success story and excellent investment destination and entrepreneurship hub in the Western Indian Ocean.
