Geographical isolation and a lack of natural resources have resulted in a weak economy based almost entirely on the export of spices and perfume oils. The islands, particularly Anjouan, are suffering from severe environmental problems, exacerbated by a rapidly expanding population. As the population continues to expand, more marginal land is needed for growing food, and more wood is needed for fuel.
Deforestation causes soil erosion and the consequent loss of watersheds.
Of 45 permanent rivers present on Anjouan in 1925, only 11 remained in 1992. In the dry season, some areas need tankers to deliver drinking water.