Union of the Comoros Ofthe Union Snapshot Services Figure 1

Internet: address:Postal Streetaddress: Telephone: E Contactperson: additionalFor information

- mail:

www.intracen.org ITC, ITC, +41 drake JaneDrake - 22730 0446

Palaisdes Nations, 1211 GenevaSwitzerland10, 54 - [email protected] - 56Rue deMontbrillant, 1202 Geneva, Switzerland - Brockman,Trade in Services SeniorOfficer

Union of the Comoros ofthe Union snapshot Services Figure 1. KEY SERVICES DATA Services trade Services deficit: imports: Services exports: Services (18%) services commercial other (19%), travel (63%), importServices (5%) transportation (29%), services commercial exportServices exports: share oftotal Services Trade services in Services Trends in share of GDP of inshare Trends 2

share of industry value added2009 share ofindustry value composition composition 3

US$ 58 million US$ US$ 104million US$ contribution to GDP: contribution US$ 46million US$ 1 , 2012 ,

2011: 2011:

48%

transportation transportation travel (66%), other other (66%), travel

42%

services accounted for the largest share of services services of 2011. in imports (63%) share largest the for accounted economic services exports. driven franc services many in has growth of sector services 29% telecommunications the Communication for reflecting tourism. 66%, accounted at of 2011 importance of in share exports largest the services for accounted million, services 58 Travel US$ at exports, total exports. of 48% for accounted Services million. 46 US$ of deficit trade services a had Comoros 2012 In 4.5% at p.a. grows and GDP of half almost for accounts that agriculture by driven mainly is growth Economic ( rates growth since annual negative declining with 2007 been has share this However, GDP. of 42% for accounted sector services the that shows 2009 from data recent most the terms, added value In in2016. 3% to gradually todecrease (4.7%). the than Sub less of average was growth GDP the 2013, in 3.5% At SERVICES AAT GLANCE 4

The medium term growth outlook is expected expected is outlook growth term medium The - Saharan African developing countries countries developing African Saharan © James - 6 oe countries. zone

Transportation Transportation - 2% in 2009). 2009). in 2%

The The

© Ken Teegardin Transport services SERVICES SUBSECTORS Figure 2. Communication services share in services trade Figure 5. FDI net inflows The country suffers from a severe lack of basic Financial services infrastructure such as roads, ports, airports. This Penetration of the financial services sector is very low hinders the overall economic structure and the regardless of some government initiatives taken in the development of trade. In recognition of this sector, especially in microfinance and electronic shortcoming, the government will focus its 2015-19 banking. Between 2012 and 2013, many new entities economic development programme on road and port have entered the market such as Exim Bank, Banque infrastructure.7 In 2011, transport services were in trade fédérale du commerce (BFC) and Banque postale. deficit (US$ 64 million).6 They join the existing institutions in the country: the commercial bank Banque pour l’industrie et le Tourism commerce (BIC-C), the development bank Banque de développement des Comores (BDC) and the Tourism is one of the main drivers of economic growth. decentralised microfinance institutions (the Meck and Nevertheless the sector remains underdeveloped. Its Sanduck networks). Banking credits to the economy potential to serve as a flourishing tourism destination is FOOTNOTES / SOURCES have increased more than fourfold: from US$ 36 million Figure 3. Transport services share in services trade severely hindered by infrastructural weaknesses, lack

7 of capacity and provision of a stable and peaceful in 2003 up to US$ 162.5 million in 2013. In 2011, the 1. Key data derived from: World Bank – World Development financial services sector was estimated as contributing internal political environment. In 2011, Comoros Indicators, WTO Trade Profile, ITC Trade Map. 4 2. The services percentage of industry value added includes as much as 12% to total services exports.7 More recorded 19,000 international tourism arrivals. Two construction and utilities. 3. All trade data is for commercial services. Data for figures 1 - detailed data is unavailable. thirds of these arrivals are estimated to be Comorian 8 3 derived from Trade Map (ITC, UNCTAD, WTO joint data- migrants coming back to visit relatives. In 2011 there set). Data for figure 4 derived from World Bank – World was a trade surplus in travel services of US$ 21 Development Indicators. 4. World Bank – World Development Indicators. Communication services 6 million. 5. World Bank – Global Economic Prospects. 6. ITC Trade Map. Telecommunications remains a state monopoly. With 7. African Development Bank, African Economic Outlook, Co- support from the World Bank, the authorities are moros. 8. Comoros National Investment Promotion Agency, available expected to sell a second licence in the near future online: http://www.invest-comoros.com/en/tourism. and to open up the capital of Comores Télécom to FOREIGN DIRECT INVESTMENT (FDI) 9. World Bank Group – Doing Business Index, June 2014. create a competitive environment and encourage Inflows of FDI have increased over the period since innovation.7 2007 but not consistently (see Figure 5). In 2013 FDI amounted to US$ 14 million, accounting for 2% of 4 Comoros recorded a communication services trade Figure 4. Travel services share in services trade GDP. 6 surplus of US$ 16 million in 2011. Even though Comoros ranks 159th out of 189 countries in the World precise data are missing and there are inconsistencies Bank Ease of Doing Business 2014 Index.9 However, among different data sources, the important the country ranking improved in comparison to 2013, contribution of communication services to services thanks mainly to the resumption of activities by the exports is overall confirmed. In 2013 the rate of Internet investment promotion agency (Agence nationale de users among the population was only 6.5% only while promotion des investissements).7 47% of Comorians were mobile cellular subscribers. This is a remarkable increase over the last decade, the first subscriptions having been made in 2003.4

Transport services SERVICES SUBSECTORS Figure 2. Communication services share in services trade Figure 5. FDI net inflows The country suffers from a severe lack of basic Financial services infrastructure such as roads, ports, airports. This Penetration of the financial services sector is very low hinders the overall economic structure and the regardless of some government initiatives taken in the development of trade. In recognition of this sector, especially in microfinance and electronic shortcoming, the government will focus its 2015-19 banking. Between 2012 and 2013, many new entities economic development programme on road and port have entered the market such as Exim Bank, Banque infrastructure.7 In 2011, transport services were in trade fédérale du commerce (BFC) and Banque postale. deficit (US$ 64 million).6 They join the existing institutions in the country: the commercial bank Banque pour l’industrie et le Tourism commerce (BIC-C), the development bank Banque de développement des Comores (BDC) and the Tourism is one of the main drivers of economic growth. decentralised microfinance institutions (the Meck and Nevertheless the sector remains underdeveloped. Its Sanduck networks). Banking credits to the economy potential to serve as a flourishing tourism destination is FOOTNOTES / SOURCES have increased more than fourfold: from US$ 36 million Figure 3. Transport services share in services trade severely hindered by infrastructural weaknesses, lack