MOZAMBIQUE

Mozambique officially the Republic of Mozambique, is a country in Southeast Africa bordered by Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Swaziland and South Africa to the southwest

MOZAMBIQUE

In 2012, large natural gas reserves were discovered in Mozambique, revenues which have the potential to dramatically change the economy

MOZAMBIQUE COUNTRY PROFILES

ECONOMIC GROWTH

 

Economy and society
Mozambique is classified as a low income country by the World Bank, and is among the Sub-Saharan developing countries. GDP amounted to US$ 14.59 billion in 2012. Annual growth in GDP was estimated at 7.5% in 2011-2012, but Mozambique is forecast to reach a growth rate of 8.0% in 2012-2013. Thus, Mozambique offers growth rates far exceeding the world average, exceeding those of the Sub-Saharan African region, which were estimated at 4.6% and 4.9% for 2011-2012 and 2012-2013, respectively, and close to China’s growth rates (World Development Indicators, 2013). Drivers of growth are increased coal production, implementation of large infrastructure projects, and credit expansion (African Development Bank).
Overall, the Sub-Saharan African economy has generated resilient growth, despite sluggish global trends. In 2012, growth in Sub-Saharan GDP reached an estimated 4.6%, placing the region third among developing regions (World Development Indicators, 2013). Especially low-income countries offer high growth rates. Explanations are to found in a solid domestic demand, high commodity prices, rising exports, and remittance flows. These developments are backed by a longer period of relative stability, an increasingly competitive business environment, and poverty reduction.
Despite poverty reductions since the mid-90s, poverty remains an important issue in Mozambique, with 54.7% of the population living below the national poverty line, and a life expectancy at birth of 49 years, which is significantly lower than the Sub-Saharan average (World Bank). 53% of the population has unimproved drinking water sources and 82% has unimproved sanitation facilities access. The risk of infectious diseases is very high, the HIV/AIDS prevalence is in the global top 10, and maternal- and infant mortality is significant. Socially, female illiteracy, child labour, and high income disparity pose challenges (CIA World Factbook).

MOZAMBIQUE COUNTRY PROFILE

 

Business Climate
On the Corruption Perceptions Index 2013 (Transparency International), Mozambique is ranked a global number 119, with a score of 30, slightly improved from the 2012 score of 31. On the World Bank’s Ease of Doing Business Index, Mozambique is ranked a global number 139. Issues causing the environment to be more conducive to the operations of a local firm are, in particular, getting electricity, registering property, enforcing contracts and solving insolvency (World Bank).
Main sectors:
  • Natural ressources (Minerals)
  • Tourism
  • Service
  • Health
  • Education
  • Transportation / Infrastructure