INVESTMENT 2015 - 2016
In Comoros
4- Star Hotel, Grande Comoro
Hospitality
Project Description:
Build for Star luxury hotel located in Male, with a total of 50 rooms and offering leisure and
business services .
The selected site enjoys a private sand beach and has unique ecotourism potential for activities as
hiking, scuba diving as well as a variety of cultural attractions.
Attractive conditions including a granted lease and taxation ,facilitation and personal incentives will
be provided.
Project Location: Male
Investment Required : Total investment cost is estimated at USD 10.25 million, with a Payback period of
5.8 years
Project Financial Position
A discounted cash flow analysis was used over a period of 20 years, assuming no terminal value.
Using this conservative Approach we obtained an unleveraged IRR of 24.3% (100% Equity
financing)
Leveraged IRR of %50 (%34.8equity financing and50% debt financing)
Remarks
Sustained increases of tourist arrivals due to ongoing improvements in the country’s infrastructure
and increased accessibility via multiple airlines.
Strong Government support and engagement in a set of initiatives aiming at strengthening the
hospitality industry.
Very limited competition.
Remarkable touristic potential stemming from the islands’ luxurious nature and magnificent
landscapes, unique beaches as well as cultural attractions.
Salt Production Facility
Sub-Sector
Agro-processing
Project Description
Salt factory for extracting raw salt from brine and, a processing and Packaging unit that can produce
washed iodized and bagged salt as well as refined salt.
Actions Required/ Implementation Arrangements/ Contract Type
The Comorian government is providing long-term lease of land at a low cost with attractive terms and
conditions.
Remarks
• Salt has a very high purity of 99.3% in chloride of sodium
• With a population of over 700,000, and a total possible demand of 5,200 tons, the assumption is
that the market share in year one would be 25% growing to 50% in the third year, and reaching
80% by the sixth year
• Growing regional market with insufficient local supply compared to demand levels and regional
need for high quality salt with purity of over 99.3%
• No local competition; all salt products are imported from India and Madagascar
• Significant infrastructure improvements and sustained political stability
• For the export market, an assessment of the salt market in East Africa shows that potential
countries for Comorian salt exports are: Seychelles, Mauritius, Mayotte and Tanzania
Cow Farm & Milk Collection Centre
Sub-Sector
Dairy farming
Project Description
Establish of three cow farms on each of the three islands of Comoros. Each farm will concentrate
its activities on collecting milk, cooling and hygienically storing before passing on production to dairy
plants or wholesalers
Estimated Cost of the Project
Investment amounts to USD 1.9 million for the three farms, with a payback period of 3 years and 9
months
Project Financial Position
• A discounted cash flow analysis provided an unleveraged IRR of 34% (100% equity
financing)
• A leveraged IRR of 46% (50% equity financing and 50% debt financing)
Remarks
• Main revenue drivers include milk production and livestock slaughter
• The local milk production remains insufficient and does not meet the demand
• The country currently imports milk in powdered form as well as in concentrate
Greenhouse and Vegetable Market
Sub-Sector
Agriculture
Project Description
• The development of 3 vegetable farms at each of the Comorian Islands.
• The establishment of at least 25 greenhouses producing tomatoes, cucumbers and lettuce are
considered.
• Each farm should include a vegetable market with 50 outlets.
Project Financial Position
• A discounted cash flow analysis provided an unleveraged IRR of 29.8% (100% equity
financing) with a payback period of 3.6 years
• A leveraged IRR of 42.4% (50%equity financing and 50% debt financing) with payback
period of 2.7 years
Remarks
• The Comorian agricultural sector has been growing at an average growth rate of 3% per year
• The expected increase in tourism and investments in the country will increase the demand for a
wide variety of vegetables and produce from foreign visitors, expats as well as locals
• The moderate climate is ideal for growing plantations. The high level of rainfall makes water
abundant and inexpensive
• Most farm work is still manual and production techniques are for the most part still not capital
intensive. This form of production is reflected in poor yields, below the
potential of the land available. With an abundant and cheap labor force, greenhouses offer
important profitable opportunities
MANUFACTURING AND NDUSTRY
Sub-Sector
Cement
Project Description
Sourcing, processing and distributing cement to local and regional customers. Possibility of financing
with a payback period reaching 78 years.
Investment Required
USD 32.1 million
Remarks
• Would be the first cement factory in Comoros
• Strong and proactive Government support Comoros Cement Factory
INFRASTRUCTURE:
TRANSPORT, ENERGY, ICT, MINING AND WATER
Sub-Sector
Maritime Transport
Project Description
The ferry boat should provide inter-island passenger transportation for four different routes between
Moroni, Fomboni, Mutsamudu, Dzaoudzi.
Investment Required
Total CAPEX is USD 490,543 with a payback period of 1.7 years.
Project Financial Position
• A discounted cash flow analysis was used over a period of 20 years, assuming no terminal
value. Using this conservative approach an unlevered IRR of 71.5% is obtained (100% equity
Financing) and,
• A levered IRR of 139% (50% equity financing and 50% debt financing) is obtained.
Remarks
• Revenues can be generated from ticketing and lounge/ bar services.
• Strong government support to enhance the tourism sector.
• Growing demand for quality inter-island transportation with government plans to open the country
and fortify inter-island connections.
• A strong need for quality transportation exists given the current poor transportation conditions
which forces citizens to use air transport for inter-island trips.
• Development of the tourism sector would require safe inter-island
SERVICES
Sub-Sector
Heath
Project Description
The project aims to provide 75 beds, outpatient clinics, diagnostic services and surgery.
Investment required The total investment cost is USD 26.2 million with an initial investment of USD
14.6 million and a payback period of 6.4 years.
Project Financial Position
• A discounted cash flow analysis was used over a period of 20 years, assuming no terminal
value. Using this conservative approach an unleveraged IRR of 25.2% was obtained (100% Equity
financing)
• A leveraged IRR of 33.4% (50% equity finance and 50% debt financing).
Remarks
• Strong government support and engagement in a set of initiatives aiming to strengthen healthcare
delivery, quality and availability
• Lack of private hospitals and good healthcare facilities
• Growing demand for quality healthcare services, more so from middle to upper classes that travel
abroad for any surgical intervention
• The prospect inflow of investors and tourists is also expected to increase the demand for a
reliable healthcare provider
Call center
Sub-Sector
ICT
Project Description
Call center facility offering inbound and outbound call services as well as marketing services
Investment required the total Investment cost is USD 850,000 with a payback period of 5.3 years
Project Financial Position
• A discounted cash flow analysis was used over a period of 20 years assuming no terminal value.
Using this conservative approach an unleveraged IRR of 22.2% (100% equity financing) was
obtained
• A leveraged IRR of 27.5% (50% equity financing and 50% debt financing).
Remarks
• Availability of a large French speaking talent pool
• This center would be the first of its kind in the Comoros, allowing the center to monopolize the
market and grab all potentials
• Growing demand for outsourced call center services from international companies aiming at
reducing their costs of operation while preserving high levels of efficiency
