© AdobeStock
UN Trade and Development (UNCTAD) will host a two-day workshop for the validation of the Vulnerability Profile of the Comoros and the Study on the Impact of the AfCFTA on the Prospects for Structural Transformation of the Comoros.
Background
Comoros was identified as pre-eligible for graduation from the least developed countries (LDC) category by the Committee for Development Policy (CPD) during its triennial review of the LDC category carried out in 2021. This eligibility was confirmed in 2024, but the recommendation for graduation was postponed by the CPD in order to give the country more time to face its vulnerabilities and address them. It is in this context that the workshop will take place.
UNCTAD launched the preparatory process of the Vulnerability Profile of the Comoros in line with the mandate conferred by the UN General Assembly Resolution of 20 December 2004. UNCTAD undertook an inception mission to the country from 18 to 22 July 2022, and since then it has drafted a first version of the vulnerability profile.
It focuses on the Comoros’ vulnerabilities across three dimensions of sustainable development: economy, social development and the environment. It examines the degree to which the economy is exposed to external shocks and the strengths and weaknesses of the country's development trajectory over time. Given the importance of accelerating sustainable development, the document identifies key areas that will require attention and opportunities that could be quickly capitalized on to ensure achieving graduation with momentum in the medium term.
Six key development challenges
The vulnerability profile has identified six key development challenges: Unfavorable structural transformation, export concentration, institutional weaknesses, high dependence on remittances, import dependence and environmental vulnerabilities.
- Labor productivity remaining virtually stagnant over the long term
- Export concentration: Three agricultural commodities – vanilla, ylang-ylang (essential oil) and cloves – comprise more than 70% of merchandise exports.
- Dependence on remittances: From 2018 to 2020, Comoros ranked 4th in Africa and 18th globally in terms of the contribution of remittances to GDP. Remittances rose to 19% of GDP for Comoros in 2020. A total of 40% of Comorian households receive diaspora remittances, but these are channeled towards household consumption, with very limited developmental impact.
In parallel to the vulnerability profile, UNCTAD collaborated with the Economic Commission for Africa to examine how the continental integration process can be used as a lever to accelerate the country's sustainable development. The study focuses on specific economic sectors as potential catalysts to advance the structural economic transformation of the Comoros.
Workshop 0bjectives
The National Validation Workshop has the following objectives:
- Present the findings of the Vulnerability Profile and the Study
- Raise awareness among the private sector of the implications of the vulnerabilities and opportunities presented by the implementation of the AfCFTA and the Comoros' accession to the World Trade Organization
- Provide an opportunity for a multi-stakeholder dialogue on an adequate policy framework to address vulnerabilities and strengthen the country's resilience
- Promote a national consensus on policies for eventual graduation with momentum
- Develop a document outlining priorities for follow-up activities for future technical assistance to the national Government.
