Poverty  levels remain high, estimated at 39.0% in 2022 using the lower middle-income poverty rate ($3.65 at 2017 PPPs) due to scarce job opportunities in the formal sector.  High unemployment rates have contributed to frustration among the youth (with 53 percent of the population under the age of 20) and helped to drive outward migration and reliance on the informal sector. High rates of youth unemployment and limited opportunities also represent a social risk with respect to narcotics trafficking and extremism. 

To create jobs and reduce poverty, it is essential that the Comoros increases its growth potential substantially through the accumulation of human capital and physical assets, attracting new  investments in its rich natural resources, in fisheries, modern agriculture for food security, light agroindustry, tourism and crafts, the Blue Economy, financial services, information and communication technology which have a large untapped potential to support structural transformation.  

By focusing on SDG target 8.5, deepening trade and value chain integration, the Comoros can expand opportunities for all groups in society, with a focus on populations that are most at risk of exclusion, including women and youth. 

Progress on Target 8.5 should be supported with policies that reduce energy intensity and increase its effectiveness in mitigating the negative impact on the share of renewable energy (Target 7.2), coupled with energy  efficiency (Target 7.3) and strengthening the country’s resilience to environmental and climate shocks. 

The agricultural and secondary sectors’ contribution to growth has remained low and at times even negative in the Comoros. Pursuing SDG target 9.2 will  foster inclusive and sustainable industrialization in the Comoros while simultaneously enhancing its economic growth and employment prospects.

However, the pursuit of industrialization also entails tradeoffs. It requires careful consideration of environmental sustainability as industrial activities can have adverse ecological impacts—affecting ecosystems (SDGs 15 and 2), potable water (SDG 6), life below water (SDG 14) and life on land (SDG 15).  Rapid industrialization could put pressure on energy access (Target 7.2) at the expense of energy sustainability (Targets 7.2 and 7.3). Ensuring inclusivity in this process is crucial to preventing potential social, gender and territorial inequalities (Target 10. 5)  

By investing in SDG 9.2 (inclusive and sustainable industrialization), the Comoros can improve on its current employment challenges and focus on key priorities, namely poverty eradication, reducing inequality and improving the business environment and local entrepreneurship. This, complemented with policy interventions that focus on tourism and crafts; on the Blue Economy; on a financial hub for the Indian Ocean; on modern agriculture for food security; and on industrial niches for diversification to generate jobs for women and youth. 

In the Comoros approximately 58.1% of the population are satisfied with the public services they receive. By focusing on SDG 16 (Peace, justice and strong institutions), and specifically Target 16.6, the Comoros can increase its ability to achieve sustained, inclusive and high economic growth needed to reduce extreme poverty. Extreme poverty reduction can be enhanced by improving governance, strengthening institutions, the rule of law, public accountability and the fight against corruption. 

Investments and policy choices that strengthen institutions is recognized in Comoros as a fundamental driver for the eradication of extreme poverty (target 1.1) over the medium term with significantly higher and more inclusive growth (Target 8.1) with positive benefits to national efforts to build resilience to shocks and disasters (Target 1.5).