Table of Contents
- Introduction: Why Invest in Comoros Now?
- Economic Overview & Key Growth Sectors
- Government Incentives & Investment Policies
- Legal Framework and Taxation for Foreign Investors
- Navigating Compliance: Regulatory Requirements & Procedures
- Infrastructure and Market Access
- Key Statistics: Demographics, GDP, and Trade Data
- Risks and Challenges: What Investors Need to Know
- Future Outlook: Projections for 2025–2030
- Conclusion & Actionable Next Steps
- Sources & References
Introduction: Why Invest in Comoros Now?
Investing in Comoros in 2025 presents a unique set of opportunities driven by recent policy reforms, regional integration, and the country’s strategic positioning in the Indian Ocean. The Union of the Comoros, an archipelago nation, has been actively seeking to attract foreign direct investment (FDI) as part of its national development strategy, aligning with the Government of the Union of the Comoros’ Vision 2030. This initiative emphasizes economic diversification, improved infrastructure, and the enhancement of the business climate.
Key legal frameworks have been strengthened in the last two years to support investor confidence. The Investment Code, updated to ensure fair treatment and protection of foreign investors, provides for repatriation of profits, guarantees against expropriation, and access to international arbitration in disputes, as outlined by the Ministry of Foreign Affairs and International Cooperation. Furthermore, Comoros is a member of the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID), offering additional safeguards for investors.
Recent events have underscored the government’s commitment to reform. The launch of the “One-Stop Shop” for business registration in Moroni has reduced administrative barriers, with company formation now possible within 7-10 days according to the Agence Nationale pour la Promotion des Investissements (ANPI Comoros). Additionally, the government continues to modernize customs procedures and digitize public services, aiming to align with regional standards set by the Common Market for Eastern and Southern Africa (COMESA).
Key statistics highlight Comoros’s evolving investment landscape. FDI inflows grew by approximately 15% in 2023, primarily in sectors such as renewable energy, tourism, and agriculture (Banque Centrale des Comores). The country’s youthful demographic—with over 60% of the population under 25—offers a dynamic workforce and expanding consumer market.
Looking ahead to 2025 and beyond, the outlook for investment in Comoros is positive but contingent on continued reforms and political stability. Priority sectors identified by the government include infrastructure, blue economy, agribusiness, and ecotourism. Compliance with anti-corruption measures and harmonization with international standards—monitored by the Commission de Contrôle des Finances Publiques—are expected to further improve transparency and investor protection.
In sum, Comoros is positioning itself as an emerging destination for investment in the Indian Ocean region, leveraging legal reforms, regional integration, and demographic trends. Early entrants in 2025 stand to benefit from first-mover advantages as the nation advances its economic transformation agenda.
Economic Overview & Key Growth Sectors
Comoros, an archipelago nation in the Indian Ocean, has been pursuing economic reforms and development initiatives to attract foreign investment and foster sustainable growth. As of 2025, the country’s macroeconomic outlook is cautiously optimistic, driven by government efforts to improve the business environment and diversify the economy. The GDP growth rate is projected to remain moderate, with the Banque Centrale des Comores reporting a steady increase in economic activity over the past three years.
Key growth sectors identified for investment include agriculture, fisheries, tourism, and renewable energy. Agriculture remains the backbone of the Comorian economy, accounting for over 40% of GDP and employing a majority of the workforce. The country is the world’s leading producer of ylang-ylang and also exports vanilla and cloves. Recent initiatives from the Comorian Ministry of Economy, Industry, Investment, and Economic Integration have focused on modernizing agricultural practices and enhancing value chains to increase export earnings.
Fisheries represent another priority sector, with the government implementing sustainable management policies to maximize the economic potential of its exclusive economic zone (EEZ). The Ministry of Fisheries and Maritime Affairs is actively promoting partnerships for value-added processing and export of seafood products, aiming to comply with international standards and traceability requirements.
Tourism, though underdeveloped, is a strategic target for diversification. The Ministry of Tourism and Handicrafts has launched incentives for eco-friendly resorts and infrastructure development, capitalizing on Comoros’ unique biodiversity and cultural heritage. The government has also taken steps to simplify visa processes and improve air and sea connectivity.
Renewable energy—particularly solar and geothermal—has garnered attention due to the nation’s reliance on imported fossil fuels and chronic energy deficits. The National Agency for Energy and Water is leading projects to expand the share of renewables in the national grid, offering opportunities for private sector participation under new public-private partnership frameworks enacted in 2023.
Comoros’ economic strategy is underpinned by legislative reforms, including the Investment Code (2023), which provides tax incentives, guarantees against expropriation, and repatriation of profits for foreign investors (Comoros Foreign Investment Center). Ongoing improvements in regulatory compliance and anti-corruption measures, overseen by the Comoros Agency for the Fight Against Corruption, are expected to bolster investor confidence over the next several years.
In summary, while Comoros faces challenges related to infrastructure and governance, its targeted sectoral policies and legal reforms present emerging opportunities for investors seeking long-term growth in the Indian Ocean region.
Government Incentives & Investment Policies
The government of the Union of the Comoros has prioritized attracting foreign direct investment (FDI) as a cornerstone of its national development strategy, particularly under its national development plan, the Plan Comores Emergent (PCE). This strategy, extending through 2025 and beyond, is geared towards economic diversification, job creation, and sustainable growth, with an emphasis on sectors such as tourism, agriculture, fisheries, and renewable energy.
The legal framework for investment is anchored in the Investment Code (Loi n° 08-014/AU du 5 juin 2008), which guarantees equal treatment for foreign and domestic investors, protection against expropriation, and the ability to repatriate profits and capital. The Agence Nationale pour la Promotion des Investissements (ANPI) functions as a single window for investors, facilitating administrative processes and providing investment information and aftercare services (Agence Nationale pour la Promotion des Investissements).
- Tax Incentives: The Investment Code provides for significant tax advantages, including exemptions from customs duties, VAT, and corporate income tax for qualifying investments during the start-up phase, with the duration and extent depending on investment size and sector.
- Special Economic Zones (SEZ): The government is developing SEZs to offer enhanced fiscal incentives, streamlined customs procedures, and dedicated infrastructure for investors, as outlined by the Ministry of Economy, Industry, and Investments (Ministère de l'Économie, de l'Industrie, et des Investissements).
- Sectoral Incentives: Targeted policies support strategic sectors. For instance, the fisheries and tourism sectors benefit from public-private partnership schemes and dedicated facilitation measures.
Compliance is regulated through the Code Général des Impôts and sector-specific laws. Investors are required to register their business with the Registre du Commerce et du Crédit Mobilier, obtain relevant sectoral authorizations, and adhere to anti-money laundering and environmental standards as stipulated by the Banque Centrale des Comores and the Ministère de l’Environnement (Banque Centrale des Comores).
Key statistics indicate FDI inflows remain modest but are trending positively, with the ANPI reporting a 15% year-on-year increase in 2024, mainly in tourism and agro-industry. The outlook for 2025 and the following years is cautiously optimistic, bolstered by ongoing legal reforms, infrastructure investments, and regional integration efforts within the Indian Ocean Commission. However, investors should be mindful of persistent challenges, including limited infrastructure and administrative capacity, as well as the need for continued regulatory improvements.
Legal Framework and Taxation for Foreign Investors
The legal framework for foreign investment in Comoros is shaped by efforts to attract international capital while ensuring regulatory oversight. The principal legislation governing foreign investment is the Investment Code (Law No. 95-011/AF), which provides guarantees for the protection of investors, the right to repatriate profits, and equal treatment of domestic and foreign investors. Recent amendments have focused on streamlining administrative procedures and reinforcing dispute resolution mechanisms, in line with the government’s commitment to improving the business climate.
Foreign investors are required to register their projects with the Comoros Investment Promotion Agency (Agence Nationale pour la Promotion des Investissements—ANPI). This agency serves as the primary point of contact, assisting with licensing, permits, and compliance with sector-specific regulations. Additionally, Comoros is a member of the Organisation for the Harmonization of Business Law in Africa (OHADA), which means that the country’s commercial laws—including company formation, insolvency, and arbitration—are harmonized with regional standards, offering legal predictability for foreign enterprises.
Taxation for foreign investors is governed by the General Tax Code. Corporate income tax stands at a rate of 35%, while Value Added Tax (VAT) is set at 10%. However, the Investment Code provides incentives for qualified projects, including tax holidays of up to five years, exemptions on import duties for capital goods, and reductions in land registration fees. To benefit from these incentives, investors must submit applications to the ANPI and comply with performance requirements, such as job creation and local value addition (Comoros Investment Promotion Agency).
Compliance is overseen by the General Directorate of Taxes and relevant sectoral ministries. Investors are expected to adhere to local labor laws, environmental standards, and anti-money laundering regulations, as per the Central Bank of the Comoros. Regular tax audits are conducted, and failure to comply with local regulations can result in penalties or revocation of investment privileges.
Statistically, foreign direct investment (FDI) in Comoros remains modest, with flows averaging less than $10 million annually in recent years. The government’s ongoing reforms, including digitalization of company registration and enhanced investor protection, aim to boost FDI inflows by 2025–2027 (Comoros Investment Promotion Agency). The outlook for foreign investors is cautiously optimistic, contingent on political stability and the sustained implementation of legal reforms.
Navigating Compliance: Regulatory Requirements & Procedures
Investing in Comoros in 2025 requires careful navigation of the country’s evolving regulatory environment, particularly in light of recent reforms aimed at fostering a more attractive investment climate. The legal framework for foreign investment is principally outlined in the Investment Code, most recently updated in 2020, which provides guarantees for the protection of capital, repatriation of profits, and non-discriminatory treatment for foreign investors. As of 2025, the government continues to prioritize regulatory transparency and ease of business entry, with ongoing reforms under the auspices of the Ministère de l’Économie, des Investissements et de l’Énergie.
Key compliance procedures include obtaining an investment certificate from the Agence Nationale pour la Promotion des Investissements (ANPI). This certificate is a prerequisite for accessing incentives such as customs and tax advantages. The ANPI operates a one-stop shop designed to streamline business registration, licensing, and permitting. Investors are required to submit a detailed business plan, proof of legal incorporation, and evidence of financial capacity to ANPI, which coordinates with relevant ministries to expedite approvals.
Foreign investors must also adhere to sector-specific regulations, especially in strategic sectors such as telecommunications, banking, and energy. For instance, banking and financial services are regulated by the Banque Centrale des Comores, which enforces anti-money laundering and prudential compliance in line with regional standards. Environmental compliance, particularly for projects with potential ecological impacts, is managed by the Ministère de l’Environnement et des Forêts, requiring environmental impact assessments and periodic reporting.
Statistically, company registration times have improved, with the ANPI reporting an average processing period of 15–20 business days as of late 2024. Foreign direct investment (FDI) inflows have shown an upward trend, with preliminary data from the Ministry of Economy indicating a 12% year-on-year increase in 2024, primarily in tourism, agriculture, and infrastructure.
Looking ahead, the compliance landscape in Comoros is expected to become more robust as the government implements its National Development Plan 2030. Key reforms anticipated in the next few years include further digitization of administrative procedures, the introduction of online licensing, and enhanced investor protection mechanisms. These developments, combined with ongoing commitments to transparency and regulatory streamlining, position Comoros as an increasingly accessible and regulated environment for foreign capital.
Infrastructure and Market Access
Comoros, an archipelago nation in the Indian Ocean, remains at an early stage of infrastructure development, which directly affects its investment climate. Recent government efforts have sought to improve basic infrastructure and enhance market access, notably through public investment and the establishment of legal frameworks to attract foreign direct investment (FDI).
Key infrastructure challenges persist in transportation, energy, and digital connectivity. According to the Gouvernement de l'Union des Comores, the country’s main ports (notably Moroni and Mutsamudu) handle most international trade, but limited capacity, outdated equipment, and logistical bottlenecks continue to constrain operations. Ongoing projects, some supported by multilateral agencies, aim to modernize these facilities and expand inter-island connectivity.
Electricity access and reliability are ongoing concerns, with the state utility SONELEC reporting periodic shortages and reliance on imported fuels. The government’s “Plan Comores Emergent” prioritizes renewable energy investments and grid upgrades, with incentives for independent power producers in solar and hydroelectric sectors. The Agence Nationale pour la Promotion des Investissements (ANPI) provides information and guidance for investors in infrastructure, emphasizing simplified procedures for priority projects.
Digital infrastructure is gradually improving; mobile penetration exceeds 80%, but high-speed internet coverage and reliability lag behind regional averages. The recent enactment of the Electronic Communications Law (2023) establishes a regulatory framework for liberalizing the telecom sector and expanding broadband access, overseen by the Autorité Nationale de Régulation des Technologies de l'Information et de la Communication.
Comoros is a member of the Common Market for Eastern and Southern Africa (COMESA), providing preferential market access to 21 African countries. The government has streamlined customs procedures and reduced import tariffs as part of COMESA commitments, as outlined by the Direction Générale des Douanes. Investors benefit from duty-free access for goods originating within the bloc, enhancing export opportunities.
Looking ahead to 2025 and beyond, the outlook for infrastructure and market access is cautiously optimistic. The government’s ongoing reforms, combined with regional integration and targeted donor support, are expected to improve the investment environment. However, investors should be mindful of existing logistical constraints and regulatory compliance requirements, particularly in sectors undergoing reform.
Key Statistics: Demographics, GDP, and Trade Data
Comoros, an archipelago nation in the Indian Ocean, presents a modest but evolving economic landscape for investors. As of 2025, the estimated population stands at approximately 920,000, reflecting a steady annual growth rate of around 2.2%. The population is predominantly young, with about 60% under the age of 25, offering a potential demographic dividend for future labor markets and consumption patterns.
Gross Domestic Product (GDP) remains modest but shows gradual growth. In 2024, Comoros’ nominal GDP was estimated at $1.3 billion USD, with forecasts indicating a real GDP growth rate of 3.5% for 2025, supported by projects in infrastructure, tourism, and agriculture. The country’s GDP per capita remains low at around $1,400 USD, highlighting both developmental challenges and opportunities for inclusive investment.
The structure of Comoros’ economy is primarily agrarian, with agriculture, forestry, and fishing contributing about 40% of GDP and employing nearly 80% of the workforce. Key agricultural exports include vanilla (Comoros is one of the world’s top producers), ylang-ylang, and cloves. Services, notably tourism and remittances from the Comorian diaspora, also play a significant role in national income.
Trade data illustrates a persistent trade deficit, as imports (mainly foodstuffs, fuel, and manufactured goods) consistently outweigh exports. In 2024, total exports were valued at approximately $40 million USD, while imports exceeded $300 million USD. France, the United Arab Emirates, and Madagascar are among the primary trade partners. The government continues to pursue trade facilitation and diversification strategies to enhance export performance and attract foreign investment.
Foreign direct investment (FDI) inflows remain limited, with annual FDI averaging less than $10 million USD in recent years. However, the adoption of the 2023 Investment Code, which streamlines registration procedures and offers tax incentives, aims to improve the investment climate and stimulate FDI in priority sectors such as renewable energy, tourism, and agro-processing.
Looking ahead, Comoros’ economic outlook is cautiously optimistic. The government’s Vision 2030 strategy focuses on infrastructure modernization, human capital development, and private sector growth. Sustained progress in these areas, combined with ongoing demographic trends, will shape the investment landscape in 2025 and beyond.
- Institut National de la Statistique et des Études Économiques et Démographiques
- Government of the Union of the Comoros
- Banque Centrale des Comores
- United Nations Conference on Trade and Development
- International Monetary Fund
Risks and Challenges: What Investors Need to Know
Investing in Comoros presents both opportunity and significant risk. The country, an archipelago in the Indian Ocean, has taken steps to improve its investment climate, but several challenges persist. Investors should consider the legal environment, compliance requirements, political stability, economic volatility, and infrastructure limitations when assessing opportunities in the Comoros for 2025 and the near future.
- Legal and Regulatory Risks: The legal framework for investment is governed by the Ministry of Economy, Industry, Investment, and Economic Integration, and the Investment Code sets out incentives and protections. However, enforcement of contracts and property rights can be inconsistent. The judicial system is often slow, and corruption has been identified as a risk by public authorities. Investors must be diligent in contract drafting and seek local legal counsel familiar with Comorian law.
- Compliance and Transparency: Comoros is a member of the Financial Action Task Force (FATF) and has made reforms to combat money laundering and terrorist financing. However, compliance with international standards remains a work in progress. In 2022, Comoros committed to further strengthening its anti-money laundering (AML) and combating financing of terrorism (CFT) frameworks, but gaps remain in practical enforcement and supervision.
- Political and Economic Stability: The political environment in Comoros can be volatile. While the 2019 constitutional referendum and subsequent elections brought some stability, political uncertainty and sporadic unrest remain concerns. Economic growth is projected to remain modest, with GDP growth forecast at 3–4% annually, according to Banque Centrale des Comores, but the economy is vulnerable to external shocks, climate events, and price fluctuations in key sectors such as vanilla and cloves.
- Infrastructure and Operational Challenges: Infrastructure deficits—especially in transport, energy, and digital connectivity—raise operational costs and complicate logistics. The government has outlined development priorities in the Ministry of Planning and Regional Development’s national strategies, but execution remains slow and heavily dependent on donor funding.
- Key Statistics and Outlook: Foreign direct investment (FDI) inflows remain low, totaling less than $50 million annually in recent years, as per Banque Centrale des Comores. The government continues to encourage investment through incentives such as tax breaks and customs exemptions for approved projects. The outlook for 2025–2027 is cautiously optimistic, contingent on progress in governance, regulatory reform, and infrastructure improvement.
In summary, Comoros offers untapped potential but requires investors to navigate a complex landscape of legal, compliance, and operational risks. Thorough due diligence and ongoing monitoring of the evolving regulatory environment are essential for mitigating exposure.
Future Outlook: Projections for 2025–2030
The investment landscape in Comoros between 2025 and 2030 is poised for gradual transformation, underpinned by recent regulatory reforms, regional integration efforts, and ambitious national development plans. The government’s Vision 2030 initiative aims to diversify the economy beyond agriculture and remittances, targeting sectors such as tourism, fisheries, renewable energy, and financial services. The adoption of the new Investment Code in 2022, which streamlines business registration, offers tax incentives, and guarantees repatriation of profits, is expected to enhance the country’s attractiveness to foreign investors (Government of the Union of the Comoros).
Key legal and compliance measures are also evolving to align with international best practices. Comoros has undertaken reforms to improve anti-money laundering (AML) and combating the financing of terrorism (CFT) frameworks in line with recommendations from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). Additionally, the country is a member of the Common Market for Eastern and Southern Africa (COMESA), which facilitates cross-border investment and harmonizes trade-related regulations (COMESA).
Official statistics show that foreign direct investment (FDI) inflows remain modest but are on an upward trend. According to the Central Bank of Comoros, FDI reached approximately USD 20 million in 2023, with projections for 2025–2030 suggesting steady growth as infrastructure projects and public-private partnerships materialize. The government’s focus on improving the business climate—through digitalization of public services, modernization of the judicial system, and enhancement of property rights—should further bolster investor confidence.
Challenges persist, including limited infrastructure, bureaucratic delays, and political uncertainty. However, ongoing partnerships with multilateral institutions and targeted reforms are expected to gradually mitigate these risks. The outlook for 2025–2030 indicates that sectors such as eco-tourism, sustainable fisheries, and renewable energy—particularly solar and geothermal—will see increased investment opportunities, supported by new legal frameworks and international cooperation (Comorian Agency for Renewable Energies).
In summary, while Comoros remains a frontier market with inherent risks, recent legal reforms, compliance enhancements, and regional integration efforts suggest a cautiously optimistic investment climate for the period ahead.
Conclusion & Actionable Next Steps
Investing in Comoros in 2025 presents both opportunities and notable challenges. Recent legislative reforms and policy measures have signaled a government intent on fostering a more attractive environment for foreign direct investment (FDI). The adoption of the new Investment Code, aligned with the Comoros’ Vision 2030 development agenda, provides a framework of guarantees for investors, including equal treatment, repatriation of profits, and protection against expropriation. The Government of Comoros continues to prioritize sectors such as tourism, fisheries, renewable energy, and agriculture, which are expected to drive economic diversification and sustainable growth.
Compliance with local regulations remains a critical consideration. Investors must ensure adherence to company registration protocols, tax obligations, and sector-specific licensing, as overseen by the Comoros Investment Promotion Agency (CIPA) and relevant ministries. Additionally, anti-corruption and anti-money laundering frameworks have been strengthened in line with international standards, and investors are advised to maintain robust compliance programs to meet evolving expectations from both local and international authorities (Central Bank of Comoros).
Key statistics reflect both the small size and the potential of the Comorian market. GDP growth is forecasted to remain moderate, with the Central Bank of Comoros projecting growth rates between 2.5% and 3.5% through 2025, driven by public infrastructure projects and an uptick in private investment. However, logistical constraints, limited access to finance, and administrative inefficiencies persist as barriers that investors must navigate.
Looking ahead, Comoros’ accession to international conventions and its active participation in regional organizations such as the Indian Ocean Commission and the Common Market for Eastern and Southern Africa (COMESA) are expected to facilitate greater market access and regulatory harmonization. Nonetheless, political stability and continued reform implementation will be crucial for sustaining investor confidence.
- Conduct comprehensive due diligence on sectoral regulations and land acquisition laws via official sources, including CIPA and relevant ministries.
- Engage early with local legal and compliance advisors to ensure conformity with the latest investment, tax, and anti-corruption laws.
- Monitor updates from the Central Bank of Comoros regarding financial regulations, currency exchange, and capital controls.
- Assess opportunities within priority sectors identified by the Government of Comoros, leveraging incentives under the new Investment Code.
- Develop risk mitigation strategies for political and operational risks, including insurance and local partnerships.
In conclusion, while Comoros offers emerging opportunities for investors in 2025 and beyond, success will depend on careful navigation of the legal, regulatory, and operational landscape, as well as ongoing engagement with official authorities and compliance with evolving standards.
