Trade Success No.16: Comoros' success in exporting organic and fair-trade vanilla to the European Union

"Trade Success" is a series about stories of entrepreneurs who benefit from the Economic Partnership Agreement (EPA) between the European Union (EU) and signatory countries of the Eastern and Southern Africa (ESA) region. In this 16th issue, discover Vaniacom Ltd one of the leading firms exporting vanilla from the Comoros to the European Union.

The aroma and very particular taste of the Comoros vanilla is explained by the richness in minerals of the volcanic soil.  Vanilla is Comoros' second most important export.

Vaniacom Ltd started producing organic vanilla in 1999. The processes are entirely environmentally friendly, excluding the use of pesticides.

Key facts about Vaniacom Ltd:

  • Company established in 1999, counting today 45 people of whom 80% are women
  • Women occupy a central place within the company, ranging from rank-and-file workers to management
  • Works with 150 producers throughout the archipelago
  • Certified organic for the European Union (EU) market
  • Exports to the EU currently represent 80% of its annual production, and equivalent on an annual average to 8 tonnes of raw organic and fair trade organic vanilla

About the company:

The President of Vaniacom Ltd, Mrs. Sitti Chihabiddine, a very committed entrepreneur, started producing two types of vanilla (organic and the conventional vanilla) from planting to preparation and distribution in 1999. At first, she used her own capital, before creating her company in 2001. Vaniacom Ltd gradually diversified its customer portfolio and expanded its product range by packaging pepper, cloves, turmeric, ginger and Ylang Ylang.

Organic vanilla is grown according to international standards while conventional vanilla is grown and prepared according to traditional practices. Vaniacom Sarl supplies its customers in the EU and around the world with vanilla pods, for industrial use.

The group wish to start manufacturing by-products such as vanilla powder, syrups or vanilla sugar to add value to the product, increase revenue while accessing international markets. For this, Vaniacom benefited from EU support via the APILE (Programme d'Appui à la Production, à l'Industrialisation et au Libre-Exchange) program, in order to acquire the necessary expertise for the construction of a modern factory, compliant with international standards. This support marks the start of a process planned in several stages according to a carefully studied business model.

Concerned about the human development of its producers and partners, in February 2022, Vaniacom launched a mutual health insurance plan for the benefit of its agents and their families. As part of its sustainable development, Vaniacom has also developed a social profit-sharing fund for small producers, which allows them to reinvest part of their profits to modernize, increase and diversify their production.

Main achievements over the years:

  • Diversification in terms of customer portfolio and expansion of products range
  • Opening of a spice counter, a store located in the center of Moroni, which, in addition to vanilla, sells a wide range of spices that make the Comoros so special: ylang-ylang, pepper and turmeric
  • Vaniacom has received several national and international awards for its contribution to the economic development of the Comoros and the managerial qualities of its President, Mrs. Sitti Chihabiddine

How will the EPA help?

According to its President, the EPA is an essential element of the company's future development. Through the full implementation of the agreement in the Comoros, which will allow tariff dismantling for the import of most products from the EU, the group will be able to import machine tools or processing equipment at a 5% tariff rate, compared to the current 45%, therefore improving its competitiveness.

The EPA will also allow Vaniacom to explore new regional markets and expand its market in the EU.

Finally, the EPA accompanying measures implemented by the EU in Comoros are essential elements for trade facilitation, and for strengthening the public-private dialogue to identify key reforms to improve conditions for private sector development.

Finally, the EPA accompanying measures implemented by the EU in Comoros are essential elements for trade facilitation, and for strengthening the public-private dialogue to identify key reforms to improve conditions for private sector development.

"The EPA will help me improve the competitiveness of my products, diversify my activities and develop new trade opportunities at the regional level."

Vaniacom Ltd

Mrs Sitti Chihabiddine, President

Vaniacom Vanilla results

 

Vaniacom team  working

 

Vaniacom

Vaniacom girofles

 

People posing for a photo

Person doing some measurement

Photo with Mr Pierre Beziz, Head of the European Union Office in the Union of the Comoros.png