Comoros - Financial Inclusion Project

Overview & Synopsis

Ratings of the Comoros Financial Inclusion Project for the Union of Comoros were as follows: outcome was satisfactory; Bank performance was moderately satisfactory; M&E quality was substantial. Key lessons are that digital financial infrastructure can rapidly expand access in fragile, small-island contexts, but success depends on early stakeholder alignment with telecom operators and banks, clear governance arrangements, and realistic sequencing that prioritizes foundational systems before downstream activities; restructuring of microfinance institutions requires careful attention to political economy and should sequence governance and supervision reforms ahead of capital injections, grounded in independent diagnostics and consensus-building among government, the central bank (Banque Centrale des Comores, BCC), and MFI leadership; adaptive project management and timely restructuring are essential in FCV settings, calling for lighter results frameworks, contingency resources, scenario planning, and regular stress testing of indicators to realign activities with feasible trajectories; and sustainability hinges on long-term institutional capacity rather than infrastructure alone, necessitating embedded supervisory strengthening, staff retention and knowledge transfer strategies, and dedicated budget for system maintenance and upgrades. Recommendations are to secure private-sector buy-in through early regulatory agreements and binding commitments prior to launching complex ICT procurements; implement MFI reforms by first strengthening governance, risk management, and supervision while building consensus to reduce resistance and improve durability of outcomes; design projects with flexible implementation pathways and plan for mid-course corrections, including simplified indicators and pre-identified restructuring options; and institutionalize operations by transitioning critical consultant roles to permanent BCC positions, allocating recurrent funding for system upkeep, completing and enforcing payments governance frameworks and interoperability protocols, and continuing financial literacy and agent-network expansion to deepen active usage, especially among women and rural clients.