Comoros is a small island development state (SIDS) located off the east coast of Africa. Like many SIDS, Comoros faces development challenges that are unique to its size and geographic isolation. With a narrow resource base and a small domestic market, Comoros has struggled to diversify its economy, making it vulnerable to domestic and external shocks.
The government has implemented necessary measures through tax revenue administration and public finance management to rebalance the budget in recent years. However, additional financing is needed to achieve the country’s sustainable development objectives. Mobilising the necessary resources, both domestic and global, will require activating all possible sources of funding from the public and private sectors.
In response to this need, the Government of Comoros has embarked on the development of an integrated national financing framework (INFF) to strengthen its SDG financing ecosystem. As an initial step in INFF development, the government updated its development finance assessment (DFA) with support from UNDP.
Through the DFA process, the Government of Comoros mapped the capacities of political institutions involved in development financing and evaluated the country’s strategies to mobilise public and private, national and international resources.
This report presents the results of the DFA, including a map of internal funding (taxation, public debt, private sector funding, etc.) and external funding (money transfers from the diaspora, development aid, foreign direct investment, private equity, debt, etc.) and an assessment of the government’s capacity to expand funding sources. It identifies new potential sources of finance and proposes reforms to optimise financing and ensure better allocation of resources.
The DFA ends with recommendations for better prioritisation and stronger alignment of financial flows with the main objectives of the Comoros Emergent Plan 2030 and its intermediate strategies (Intermediate Development Plan 2020-2024) and a roadmap that lays out the necessary steps for the development of an INFF.
