Comoros Secures Nearly $4 Billion in Financing Following Paris Conference

Tourism at Comoros’ beaches and capital city, Moroni, makes up an important sector of the economy. (Flickr)

Comoros successfully raised almost $4 billion at a conference in Paris from December 2 to December 3 following efforts by the small island nation’s top government officials to secure financing for infrastructure and other projects relating to agriculture and tourism. The meeting, organized by the French government and the World Bank, was attended by representatives from the French, Chinese, Japanese, and Egyptian governments. The conference resulted in funding commitments from the World Trade Organization and the League of Arab States. Pledges were also made by the sovereign investment funds of Saudi Arabia and Kuwait.

Located between Mozambique and Madagascar, Comoros is one of the poorest countries in the world, with a population of just over 800,000 and an economy that heavily relies on volatile commodity prices. The former French colony is the world’s largest producer of ylang-ylang, which is used to produce vanilla and cloves, as well as perfumes.

The financing secured at the conference will come in a variety of forms, including loans, donations, and direct investments. The amount raised came remarkably close to the government’s stated $4.6 billion goal, a relatively large sum considering Comoros’ economy is valued at about $1.2 billion.

The new financing is particularly significant as Comoros continues to recover from the effects of Cyclone Kenneth, which damaged much of the island’s infrastructure in April this year.

Comoros has long been viewed as a somewhat unstable state, an image that President Azali Assoumani has sought to change since his reelection in March. During the election campaign, Assoumani ran on a promise to stimulate economic growth and help Comoros move forward from its troubled history.

The president faces an uphill battle, however, as he represents a nation that has historically been marred by assassinations. Comoros has endured 20 attempted coups or uprisings since it gained independence from France in 1975. Assoumani has faced significant personal controversy domestically as well, as the opposition argues that there has been a lack of transparency in the electoral process. Many have accused Assoumani of vote rigging.

Despite the newly obtained funds, moving beyond Comoros’ troubled history will prove a challenge for the country as it attempts to simultaneously deal with significant political troubles at home.