In a new Selected Issues report released in February 2026, the IMF said the country’s pension schemes face significant financial challenges driven by demographic changes, low contribution rates and structural weaknesses in the system. The report notes that without reforms, financing gaps are projected to widen steadily over the coming decade.
According to the analysis, Comoros currently operates several pension schemes, including those for civil servants, Members of Parliament and private-sector workers. These schemes rely largely on pay-as-you-go financing, meaning current contributions fund existing retirees. However, contribution rates remain below the levels needed to cover obligations, creating persistent deficits.
The IMF highlighted that population ageing, although slower than in many regions, is expected to increase pressure on pension finances over time. At the same time, limited formal employment and relatively low coverage reduce the revenue base needed to sustain benefits.
The report projects that financing needs for the civil servants’ pension scheme could rise sharply by 2035 if no policy changes are introduced. In addition, current contribution rates fall significantly short of the levels required to maintain system balance.
To address these risks, the IMF recommends a package of reforms. These include gradually increasing contribution rates, adjusting benefit accrual formulas, extending the salary reference period used to calculate pensions, and raising the retirement age from 55 to 60.
The report also stresses the importance of broader fiscal reforms, including improved tax mobilisation and better targeting of subsidies, to create fiscal space for social protection. It notes that stronger governance and administrative capacity will be essential to implementing reforms successfully.
While reforms may face political and social challenges, the IMF said timely action is critical to avoid mounting deficits that could undermine fiscal stability and limit the government’s ability to fund essential public services.
Analysts say the findings highlight a wider challenge facing many small African economies, where limited resources, demographic shifts and structural labour market constraints are placing increasing pressure on social protection systems.
–IMF/ChannelAfrica–
