Poverty & Equity Brief October 2024 COMOROS The national poverty headcount stood at 44.8 percent based on the latest budget survey conducted in 2020, before the COVID-19 pandemic. By utilizing the lower middle-income poverty line of $3.65 a day (in 2017 PPP), the poverty rate is projected to be 38.1 percent in 2024. This figure represents a marginal change from 2023, primarily attributed to limited growth and a lack of structural change. Comoros continues to face challenges in economic growth, which are marked by a poor business environment and difficulties in accessing finance. Private sector development remains feeble, thus constraining job creation efforts. Furthermore, inadequate levels of human and physical capital and resource misallocation have impeded growth in the tourism and fisheries sectors despite their significant potential for job creation. The national Gini coefficient, at 0.33, is comparatively lower than that of similar countries. This inequality primarily stems from disparities within urban and rural areas and within individual islands rather than between different geographical regions. This suggests that differences in per capita consumption between the wealthy and the impoverished are prevalent across all locations rather than being localized to specific areas. The prosperity gap, which measures the average shortfall in income from a global standard of prosperity set at $25 per day, is estimated at 8.1. It means that incomes need to be multiplied by the average factor of 8.1 to bring everyone in the country to the prosperity standard. The labor market participation rate in Comoros remains notably low, especially among women and the youth. This can be attributed to various factors such as cultural norms, lack of educational opportunities, and limited access to formal employment. Surprisingly, remittances do not seem to impact labor market participation as initially anticipated. However, those who receive remittances are more inclined towards informal self-employment rather than wage work. $2.15 Poverty Rate $6.85 Poverty Rate Gini Index Prosperity Gap 2014 2014 2014 2014 18.6% 68.6% 45.3 8.1 Poverty Rate Inequality 70 70 60 60 50 50 Poverty Rate (%) Gini Index 40 40 30 30 20 20 10 10 0 2005 2010 2005 2010 $2.15 Poverty Rate $3.65 Poverty Rate $6.85 Poverty Rate Gini Index Poverty at Different Lines Poverty Line Number of Poor Rate Year (Thousands) (%)   National Poverty Line 358.4 44.8 2020         International Poverty Line ($2.15/day) 133.2 18.6 2014         Lower Middle Income Class Poverty Line ($3.65/day) 282.4 39.5 2014         Upper Middle Income Class Poverty Line ($6.85/day) 490.2 68.6 2014         Multidimensional Poverty Measure   26.3 2014         Group and Multidimensional Poverty Poverty by Group Poverty Rate (%) Multidimensional Poverty Components (% of Pop.)   Urban population 29.3 Daily income less than US$2.15 per person 18.6 Rural population 46.3 At least one school-aged child is not enrolled in school 7.3 Males 39.6 No adult has completed primary education 15.3 Females 39.5 No access to limited-standard drinking water 6.4 0 to 14 years old 49.1 No access to limited-standard sanitation 67.2 15 to 64 years old 38.3 No access to electricity 28.5 65 and older 29.6 Without education (16+) N/A* Primary education (16+) 38.8 Secondary education (16+) 32.1 Tertiary/post-secondary education (16+) 18.0 Note: Data for the "Poverty by Group" table is derived from a 2014 survey and data for the "Multidimensional Poverty Components" table is derived from a 2014 survey. The rates in the "Poverty by Group" table above are shown at the $3.65 lower-middle income line. "N/A" denotes a missing/removed value, while "N/A*" refers to a value which was removed due to having fewer than 30 observations. Poverty Data & Methodology The "Enquête Harmonisée sur les Conditions de Vie des Ménages" or Harmonized Household Survey for 2020 (henceforth referred to as EHCVM 2020) is the most recent available household survey. This type of survey is also used in the West African Economic and Monetary Union (WAEMU) countries. It uses the latest innovations in questionnaire design, data collection, and poverty measurement methodology. In addition, the EHCVM 2020 survey represents the most recent consumption basket of Comoros' households. The survey collected detailed consumption expenditure data on food and non-food products. It thus allowed the use of consumption per capita as the welfare aggregate and a poverty line equivalent to KMF 41,495 ($99) per capita per month to update the poverty and inequality situation in the country. The new consumption aggregate based on the 2020 EHCVM covers many food and nonfood items, durable goods, and housing captured using more consistent recall periods. The cost-of-basic-needs (CBN) approach, which corresponds to the cost for a household to achieve a level of well-being considered the minimum necessary to satisfy its food and non-food needs, was used to construct the poverty line for Comoros. Harmonization The numbers presented in this brief are based on the SSAPOV database. SSAPOV is a database of harmonized nationally representative household surveys managed by Sub-Saharan Team for Statistical Development. It contains more than 100 surveys covering 45 out of the 48 countries in the SSA region. The three countries not covered in the database are Eritrea, Equatorial Guinea, and Somalia. Terms of use of the data adhere to agreements with the original data producers. Africa Eastern & Southern Poverty Economist: Francis Mulangu