Mozambique/

At independence in 1975, Mozambique was one of the world’s poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, have led to dramatic improvements in the country’s growth rate. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government’s revenue collection abilities. In spite of these gains, Mozambique remains dependent upon foreign assistance for more than half of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country’s work force and smallholder agricultural productivity and productivity growth is weak. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country’s largest foreign investment project to date, has increased export earnings. At the end of 2007, and after years of negotiations, the government took over Portugal’s majority share of the Cahora Bassa Hydroelectricity (HCB) company, a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More power is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambique’s once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF’s Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. In July 2007 the Millennium Challenge Corporation (MCC) signed a Compact with Mozambique; the Compact entered into force in September 2008 and will continue for five years. Compact projects will focus on improving sanitation, roads, agriculture, and the business regulation environment in an effort to spur economic growth in the four northern provinces of the country. Mozambique grew at an average annual rate of 9% in the decade up to 2007, one of Africa’s strongest performances. However, heavy reliance on aluminum, which accounts for about one-third of exports, subjects the economy to volatile international prices. The sharp decline in aluminum prices during the global economic crisis lowered GDP growth by several percentage points. Despite 8.3% GDP growth in 2010, the increasing cost of living prompted citizens to riot in September 2010, after bread price increases were announced. In an attempt to contain the cost of living, the government implemented subsidies, decreased taxes and tariffs, and instituted other fiscal measures.

$22.19 billion (2010 est.)

$20.49 billion (2009 est.)

$19.28 billion (2008 est.)

$10.21 billion (2010 est.)

8.3% (2010 est.)

6.3% (2009 est.)

6.8% (2008 est.)

$1,000 (2010 est.)

$900 (2009 est.)

$900 (2008 est.)

9.87 million (2010 est.)

21% (1997 est.)

70% (2001 est.)

47.3 (2002)

39.6 (1997)

17.2% of GDP (2010 est.)

40.8% of GDP (2010 est.)

33.4% of GDP (2009 est.)

13.5% (2010 est.)

3.3% (2009 est.)

9.95% (31 December 2009)

9.95% (31 December 2008)

15.68% (31 December 2009 est.)

18.31% (31 December 2008 est.)

$2.657 billion (31 December 2010 est)

$2.812 billion (31 December 2009 est)

$3.803 billion (31 December 2010 est.)

$4.074 billion (31 December 2009 est.)

$2.74 billion (31 December 2010 est.)

$2.311 billion (31 December 2009 est.)

$NA

cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry

food, beverages, chemicals (fertilizer, soap, paints), aluminum, petroleum products, textiles, cement, glass, asbestos, tobacco

8% (2010 est.)

15.91 billion kWh (2007 est.)

10.16 billion kWh (2007 est.)

11.82 billion kWh (2007 est.)

8.278 billion kWh (2007 est.)

0 bbl/day (2009 est.)

18,000 bbl/day (2009 est.)

0 bbl/day (2007 est.)

13,760 bbl/day (2007 est.)

0 bbl (1 January 2010 est.)

3.3 billion cu m (2008 est.)

100 million cu m (2008 est.)

3.2 billion cu m (2008 est.)

0 cu m (2008 est.)

127.4 billion cu m (1 January 2010 est.)

-$1.028 billion (2010 est.)

-$866 million (2009 est.)

$2.517 billion (2010 est.)

$1.947 billion (2009 est.)

aluminum, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity

Netherlands 47.62%, South Africa 11.6% (2009)

$3.527 billion (2010 est.)

$3.059 billion (2009 est.)

machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles

South Africa 33.54%, Netherlands 8.42%, India 5.93%, China 4.24% (2009)

$1.982 billion (31 December 2010 est.)

$1.829 billion (31 December 2009 est.)

$4.99 billion (31 December 2010 est.)

$4.246 billion (31 December 2009 est.)

meticais (MZM) per US dollar - 35 (2010), 26.283 (2009), 24.125 (2008), 26.264 (2007), 25.4 (2006)