ITFC Boosts Comoros’ Energy Security, Food Supply and Economic Resilience

With a population of roughly 850,000 and limited domestic production capacities, Comoros depends heavily on imported energy and staple food commodities.

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, continues to accelerate its long-standing partnership with the Union of Comoros, providing critical trade finance that is transforming the island nation’s energy stability, food systems, and economic resilience.

With a population of roughly 850,000 and limited domestic production capacities, Comoros depends heavily on imported energy and staple food commodities. Since 2008, the ITFC has committed more than US$799.3 million in trade finance to help the country meet essential development needs—making the institution one of Comoros’ most reliable and strategic economic partners.

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Powering Comoros: Over US$655 Million in Energy Financing Since 2008

Energy remains the backbone of Comoros’ socio-economic stability, and ITFC support in this sector has been transformative. The Corporation has approved US$655.4 million in energy financing—representing over 80% of its total support to the country.

This financing ensures that Comoros can import its entire annual requirement of refined petroleum products, estimated at 100,000 m³ per year. In a global environment marked by fluctuating oil prices, rising transport costs, and supply-chain disruptions, the ITFC’s role has been vital in protecting Comoros from severe energy shocks.

Strengthening Capacity Through Integrated Trade Solutions

In 2023, ITFC partnered with the Société Comorienne des Hydrocarbures (SCH), the state-owned energy enterprise, to implement an Integrated Trade Solution (ITS)—a model that goes beyond financing to include institutional strengthening and skills development.

The initiative included:

• Reverse Linkage training for SCH professionals at Tunisia’s STIR Refinery

• Skill-building in trade negotiations, Islamic finance, and petroleum storage management

• Reinforcement of operational capacity within SCH to handle import flows more efficiently

This collaboration protects approximately 480 jobs, nearly 200 of which are held by women, highlighting ITFC’s emphasis on gender inclusion. Additionally, over 70% of petroleum imports financed through ITFC are sourced from fellow OIC member states, boosting intra-OIC trade and fostering stronger regional cooperation.

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Bolstering Food Security: EUR 20 Million Facility to Support Essential Imports

Food security continues to be a pressing priority for Comoros, especially given the country’s vulnerability to global supply-chain disruptions and climate-related agricultural shocks. In 2024, ITFC approved a new EUR 20 million trade finance facility designed to safeguard the nation’s access to essential food items.

The facility will support the importation of:

• Rice

• Wheat flour

• Sugar

• Cooking oil

• Meat

In 2023, Comoros imported 91,929.94 metric tons of food products valued at EUR 62.7 million. The new ITFC facility will cover 31.9% of the country’s annual food procurement needs—significantly stabilizing household access to affordable staples.

Supporting Local Businesses and Job Creation

This financing provides major support to local food importers and distributors:

• 50 to 75 small and micro-enterprises will benefit

• Over 2,500 jobs will be sustained as part of the food distribution network

• Businesses will be better insulated from global price volatility

Since its inception, ITFC has contributed US$143.9 million towards food security and agriculture financing in Comoros.

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Expanding Islamic Finance Access and Strengthening Local Banking Capacity

ITFC is also advancing Islamic finance penetration in Comoros through partnerships with local banks such as:

• AFG Bank

• Banque de Développement des Comores (BDC)

These collaborations enable:

• Greater access to Letters of Credit (L/C) confirmation facilities

• Improved liquidity for importers

• Strengthened capability to support national diversification goals

By expanding Islamic finance solutions, the ITFC is helping to develop a more resilient, inclusive, and Sharia-compliant financial ecosystem in the country.

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Driving Sustainable Development and Economic Resilience

Through its targeted and integrated interventions across energy, food security, institutional capacity building, and financial sector development, the ITFC continues to play a crucial role in strengthening the Union of Comoros’ economic foundations.

Its long-term partnership:

• Enhances national resilience to external shocks

• Promotes inclusive growth

• Supports women’s economic participation

• Expands regional trade cooperation

• Strengthens key institutions for sustainable development

As Comoros continues to pursue its vision for economic diversification and improved living standards, the ITFC’s trade finance model—combining capital, skills training, and strategic expertise—remains essential to supporting the country’s journey toward long-term stability, prosperity, and self-reliance.