Comprising three islands characterized by poor transportation links, few natural resources and a young and rapidly expanding population, Comoros is also one of the poorest countries in the world.  agriculture, fishing, hunting, and forestry are the mainstay of the economy, employing some 80 percent of the population and accounting for some 40 per cent of GDP. Food production does not meet national demand and rice, the main staple, is the largest single import into the country. Development efforts have, to a very large measure, been hampered by political instability.

A limited export base, comprising vanilla, cloves and ylang-ylang, accounts for some 95 per cent of export earnings.  Poverty remains widespread and many on the islands continue to be very dependent on remittances from relatives abroad.

The large civil service, whose wage bill stands at more than 60 per cent of total expenditure, continues to constrain public finances.

The country's external debt was in the first quarter of 2008 estimated at 72% of GDP compared with a Sub-Saharan average of 23 per cent. Debt reduction under the HIPC and the MDRI initiatives is thus crucial to any substantial  economic and social progress.

In 2007, however, the Bank began concerted efforts to re-engage and normalize relations with the Comoros in order to help the country advance towards its development agenda. The AfDB Board classified the Comoros as a post-conflict country, making it eligible for arrears clearance under the Bank’s Post-Conflict Countries Facility (PCCF).  In December 2007, Comoros’ debt arrears of UA 21.94 with the Bank Group were cleared.

During the ADF-11 funding cycle which runs from 2008-2010, the Bank Group will provide UA 18.5 million for Comoros. Of this total, UA 5 million will come from ADF-11 resources, UA 12 million the AfDB’s Fragile States Facility, and UA 1.5 million from the Bank’s African Food Crisis Response.  Given the country’s urgent needs, special efforts will be made to allow the early disbursement of these funds under exceptional circumstances.  It is expected that a Bank Country Strategy Paper  will be completed in 2009.