flag Comoros Comoros: Investing

FDI in Figures

Current FDI inflows to Comoros remain marginal despite tax concessions and benefits offered by the government, which is resolutely trying to improve the business climate and institutional stability. According to UNCTAD’s World Investment Report 2021, FDI inflows amount to only USD 9 million in 2020, up from USD 4 million in 2019, despite the global economic crisis triggered by the Covid-10 pandemic. The FDI stock remains low, despite an increase in 2020, and is estimated at USD 138 million. In 2021, global FDI flows rebounded strongly, but FDI flows to African countries (excluding South Africa) rose only moderately (UNCTAD’ Investment Trends Monitor). The agriculture and fishing sectors receive most of foreign investment. China is the biggest investor in the country. In the last decade the Chinese invested millions in the country, paving roads, and building new schools, mosques, markets, government buildings (including the parliament building), a new airport, a centre to facilitate tourism, and a sports stadium. Additionally, China regularly sends doctors to the islands, and built a USD 12 million hospital. Other main investing countries include France, the United States and South Africa.

Comoros ranked 160th out of 190 countries in the World Bank’s 2020 Doing Business Report, gaining four places compared to the previous year. The Investment Code of Comoros does not provide an explicit definition of FDI, and the regulatory environment still imposes significant burdens on investors. However, the government is committed to reform the investment code and establish a single point of contact for setting up a company. The poor quality of its infrastructure, the limited size of its domestic market, geographical isolation, frequent water and electricity shortages, limited natural resources and an unskilled workforce are all factors that also hinder FDI. Additionally, property rights are not well protected, and contracts are weakly enforced. The judicial system, based on both Sharia (Islamic) law and the French legal code, is weak and subject to political influence. Corruption is reported at all levels of government and is exacerbated by internal political disputes and competition for resources among the administrations of the three islands.


Country Comparison For the Protection of Investors

  Comoros Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 7.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 5.0 5.5 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 201920202021
FDI Inward Flow (million USD) 444
FDI Stock (million USD) 129.1137.6141.7
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 000

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value added tax (VAT) - Taxe sur la valeur ajoutée (Local name)
10% (standard rate)
3%: water supplies, private school fees and inter-island air fares
5%: restaurant services, banking activities, and international transport
7.5%: mobile phone services
25%: casinos activities
Zero-rated: certain basic necessities.
Company Tax
50% for companies with a turnover above KMF 500 million
Withholding Taxes
Dividends: 15%, Interests: 15%, Royalties: 0%.
Social Security Contributions Paid By Employers
No contribution payed.
Other Domestic Resources
Comoros Customs
Ministry of Finance and Budget
Consult Doing Business website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Personal income tax Progressive rate from 0% to 30%
Less or equal to KMF 150,000 0%
KMF 150,001 - 500,000 5%
KMF 500,001 - 1,000,000 10%
KMF 1,000,001 - 1,500,000 15%
KMF 1,000,501 - 2,500,000 20%
KMF 2,500,001 - 3,500,000 25%
Over KMF 3,500,000 30%

Country Comparison For Corporate Taxation

  Comoros Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 33.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 100.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 219.6 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Comoros
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Comoros.
Useful Resources
Economic Developments and Prospects in Comoros - African Economic Outlook

Business Setup Procedures

Setting Up a Company Comoros Sub-Saharan Africa
Procedures (number) 9.00 7.51
Time (days) 16.00 21.30

Source: Doing Business.


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Latest Update: October 2022