Report No. 1626a-COM A The Economyof the Comoros July 26, 1977 Public Disclosure Authorized EasternAfrica Regionial Office FOR OFFICIALUSE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank Thisdocument hasa restricteddistribution and may be used by recipients only in the performanceof their official duties Its ccrtents may not otherwisebe disclosedwithout World Bankauthorizat on CURRENCY EQUIVALENTS End of period Yearly Average 1968 US$1.00 CFAF 246.85 CFAF 246.85 CFAF 1 = US$0.0041 US$0.0041 1969 US$1.00 = CFAF 277.71 CFAF 259.71 CFAF 1 US$ 0.0036 US$0.0039 1970 US$1.00 = CFAF 277.71 CFAF 277.71 CFAF 1 US$0.0036 US$0.0036 1971 US$1.00 = CFAF 255.79 CFAF 277.03 CFAF 1 US$0.0039 US$0.0036 1972 US$1.00 = CFAF 255.79 CFAF 252.21 CFAF I US$0.0039 US$0.0040 1973 US$1.00 CFAF 230.21 CFAF 222.70 CFAF 1 US$0.0043 US$0.0045 1974 US$1.00 = CFAF 222.22 CFAF 240.50 CFAF I US$0.0045 US$0.0042 1975 US$1.00 = CFAF 224.27 CFAF 214.32 CFAF 1 US$0.0045 US$0.0047 1976 US$1.00 = CFAF 248.49 CFAF 238.98 CFAF 1 US$0.0040 US$0.0042 FISCAL YEAR January 1st to December 31 FOR OFFICIAL USE ONLY Foreword This report is based on the findings of a mission to the Comoros in November/December,1976 consisting of Messrs. P. Landell-Mills (chief of mission) and M. Ragno (general economist). The report also incorporates the findings of a transport sector mission consisting of Ms. F. Johansen (transport economist) and Messrs. G. Orsini (roads engineer) and D. Raymond (ports specialist) which visited the Comoros in March, 1977. The report was discussed with Comorian Government in June, 1977 and subsequentlyupdated. Thisdocument has a rstctedditribution aNday bewd byrecpients onry in theperfornnce oftheir offci dutim. its contents may notoiferWi be dicled WithoutWodd Dankauthodxuion. THE ECONOMYOF THE COMOROS TABLE OF CONTENTS Page No. MAPS BASIC DATA SUMMARY AND CONCLUSIONS ........................................ i-vii INTRODUCTION ......... 1.............I PART A: THE SETTING 1. THE COUNTRY .... 2 General Features .................... 2 Grande Comore .................... 3 Anjouan ............... , 4 Mayotte .................. ... 4 Moheli.. 5 2. THE PEOPLE . ........... 5.......5 Their History ................... ... ,. 5 Characteristics of the Population . 6 3. POLITICAL SITUATION ........ 8........8 Recent Political and Institutional Developments.. 8 Fundamental Reform . 10 4. PLANNING FOR DEVELOPMENT .................................. 11 Past Plans ... 11 The Need for Planning ... 12 Strategy for I)evelopment ... 13 PART B: STRUCTURE OF ECONOMIC ACTIVITIES AND RECENT TRENDS 1. SALIENT FEATURES OF THE ECONOMY .16 Production, Incomes and Investment .16 Employment Wages and Prices . .19 2. MONEY BANKING CREDIT . ... 23 The Monetary System . .23 Recent Trends in Money and Credit . .26 TABLE OF CONTENTS (Cont'd) Page No. 3. EXTERNAL TRADE AND PAYMENTS ............................. 30 Comoros Structural Trade Deficit .................... 30 Export Performance ** ................................. 31 Characteristics of Imports ..... ..................... 34 Balance of Payments . ............................... 36 4. PUBLIC FINANCE .. .............. ...... O... 37 Overview ....... ...................................... 37 Structure of Public Operations ...... ................39 The Fiscal System and Recent Revenue Trends .... ..... 40 The Pattern of Government Expenditure .... ........... 42 Public Investment 1970-1975 ................... ..... 44 The Budgetary Situation in 1976 and Outlook for 1977 .................................... 45 PART C: THE SECTORS: CHARACTERISTICS AND ISSUES 1. THE RURAL SECTOR .................... o .................... 48 Level and Trends in Agricultural Production ......... 48 Competition between Different Land Uses ...... ....... 52 Agricultural Services .. ............... ............. 54 Problems and Prospects -for the Principal Crops ...... 56 The Need to Expand Food Production ....... .. ......... 61 Forestry: A Crisis Situation ............ .......... 62 Opportunities for Fisheries Development ............ 64 2. INDUSTRY ................................................ 66 Existing Activities .................................. 66 The Construction Industry ........... .. .............. 67 Potential for Industrial Diversification ..... ...... 68 3. TOURISM .................. * ...............................70 4. INFRASTRUCTURE ........................................... 74 Transport Constraints .................... o .......... 74 Sea Transport ......................................75 Civil Aviation .....................................................77 Road Communications ................................. 78 Telecomunications and Postal Services ................ 80 Power Supplies ......................................81 Water Supplies ....... ............................... 82 TABLE OF CONTENTS (Cont'd) Page No. 5. EDUCATION ............................. ......... 83 Background ..........................................83 The Colonial Heritage. ............. ... ..... 84 Educational Reform ...................................... 88 6. HEALTH SERVICES ................... , . ....... ..... 91 PART D: PROSPECTS AND NEEDS 1. OUTLOOK FOR DEVELOPMENT . ............. ......*v.* .......... 94 2. SOME KEY DEVELOPMENT ISSUES . ............................ 95 Explosive Population Growth ............ ............. 95 Rural Development ...........................................97 Diversification .........I .......................... 98 3. ROLE OF EXTERNAL ASSISTANCE ...... ........................98 PART E: ANNEXES Annex I: The Development of Transport Annex II: Note on the Constitution of April 23, 1977 Annex III: Statistical Tables LIST OF TEXT TABLES 1. Population by Island, Mid-1976 2. Growth of Production and Income 3. Sectoral Composition of GDP 4. Use of Resources 5. Occupations of the Active Population, 1966 6. Registered Salaried Employment 7. Registered Salaried Employmentby Island 8. Average Annual Salaries in Selected Sectors 9. Selected Price Indices 10. Assets and Liabilities of the Banking System 11. Distribution of Short-Term Credit to the Private Sector 12. Medium- and Long-Term Credit 13. Summary of Foreign Trade 14. Trends in Principal Export Commodities 15. Trends in Selected Imports 16. Imports Adjusted to Take into Account the Bonded Warehouse 17. Foreign Trade Indices 18. Summary of Balance of Payments Estimates 19. Summary of Financial Situation 20. Central tGovernmentCurrent Revenue 1970-75 21. Government Expenditure 1970-1975 22. Current Government Expenditure 23. Percentage Distribution of Current Government Expenditure by Sector, 1970 and 1975 24. Financial Position of the Treasury 25. Volume Indices for Principal Agricultural Products, 1952-75 26. Exports of Principal Agricultural Products, 1970-1975 27. Principal Agricultural Exports by Island, 1974 28. Average Annual Value of Agricultural Exports by Island, 1973-74 29. Land CapabilitY by Type 30. Actual Land Use by Island, 1965 31. Some Data on Yields of Traditional and Improved Crop Varieties 32. Forest Areas, 1968 and 1974 33. Tourist Infrastructure 34. Total Number of Visitors 35. Proposed Investment in New Hotel Accommodation 36. New Registrations of Vehicles and Cumulative Total 37. Road Network, April 1977 38. Electricity Production by EDC 39. School Enrollments 40. Qualifications of Primary School Teachers 1974-75 41. Number of Students Overseas I8RD 12739 43J40' 43-45' 43°5 0' 'MAY 1977 COMORO ISLANDS MOHELI I NFRASTRUCTURE--- 1215' Hoani % Principalcity 12°15 /2S' Othertowns Pavedroads: Completed Under construction Plonned OMBONI~ ~ ~~~~~~IEarth roads Z Port angoma ~ ~~~~~~~~+Airport Rivers -6w- Elevation contours, meters MiringoniC> D i 4 i KILOMETERS MILES 12'20' 12'20 s~ DJanDRO Kanani Niouachoua ItsamiaD M'Choco1. k ambia M'BouziI. ForoL. GnandzaI. Mea1. 43-50O 43-55- M'BouziI. Magnuni1. Bougo1. 4°0 444NA 4°5 ><v T A N Z A N I A io44 8 Ouenefou1. Chandzi1. > o * Grande Canzoni1, Canzonil. rD) M r.i._ ox ,.^ r 1 ~~~~~~~~~~~~~MoronioComore Moheli Anjouan 12° -12-25 12-25'- ' MOZAMBIQUE ,Ž COMORO Mayotte ISLANDS Matt riMALA i' flite boundarensshown ot, i/5is Map d(o not > 1 2 6o. nd0ries0 , iy < 1 0o e 10Kiilometersiey' iniply .... nnroraceptan-e.- by' th, MADAGASCAR __________________________________________.__43M40' World Bank and its affiliates. 1 , ,4, 0 10o 2o0 Miles ,, A44°4A8° W505 s,oC av,in COMORO ISLANDS IM1Zamboro MAYOTTE Islond INFRASTRUCTURE (Situation as of July 6 1"1975) kb Principal aity 4% Oiher towns rep Pavedroads: 12' -Completed tAndremsa underconsh,Lcnlon >r n c _-Planned ~~~~~~~~~~~~~~~~~~~~~~~~~~~Ecrthrood M'Zomboro P- t + Airpart - Rivers Ozorviogne -400 Elevation contoars, nrders Acc,c 5'..- M'lsangmoesn-oeg g9 - ' - s4>-, <- Pamonzi1. DZAOUDZI Lbatr Chm9oni' tt2 VCet < XPanonigoe Fiisorant EBRuzi i Kahanw\_ + moBs 1'50' 5 *,d W _ n X ~~~~~~~De,nben Bondelel. -1ss5 CcronL'' \ ; t25 - bVZouoz z - * '~~~~~~ ~~ -toc Consorei TANZANIA A. ~~~~~~~~~Grande _. .- pnl-Kele,/aMoheli A 0 4 ~ ~~~6 8 I i KILOMETERS Avvrv~~~~~~~~~~~~~~~~\MOZA& Q ECOMORO -Mayorte KILOMETERS m BI 0 LfE 15~~~~~~~ILANDS i~5 -5 - ,1 |., rnd, MILES !, ./ C,A 130 0 Too 0 00 000 00O500*0... MADAGA,C5 1 t . ] -2 ,og 200 !i 0o*31 5 ;2~20 43'25 S I 3 4S3. 44* r-| Bongoi Koun nI (; TANZANIA,- M - I ''. Anjo,an 12 ? 00 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~M.heli COMORO Mayotte _ilsomio MAIAWIIA\MOZAMBIQUE ISLANDS N'Dzaouze - Ihza~ Ho.tsi,,cd , V I 0 eVndjeX X 3 20** ) <g 20 202 N'Tsaouen _= vem GA