Information

Mozambique Economy - History


MOZAMBIQUE

GDP (2008): $18.95 billion.
Annual economic (GDP) growth rate (2008):6.5%.
Per capita income (2002.): $210.

Budget: Income ............... $2,786 million
Expenditure .... $3,108 million

Main Crops: Cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice, tropical fruits; beef, poultry.

Natural Resources: Coal, titanium, natural gas .

Major Industries: Food, beverages, chemicals (fertilizer, soap, paints), petroleum products, textiles, cement, glass, asbestos, tobacco .

NATIONAL GNP
Alleviating poverty. At the end of the civil war in 1992, Mozambique ranked among the poorest countries in the world. It still ranks among the least developed nations with very low socioeconomic indicators. In the last decade, however, it has experienced a notable economic recovery. Per capita GDP in 2000 was estimated at $222; in the mid-1980s, it was $120. With a high foreign debt (originally $5.7 billion at 1998 net present value) and a good track record on economic reform, Mozambique was the first African country to receive debt relief under the initial HIPC (Heavily Indebted Poor Countries) Initiative. In April 2000, Mozambique qualified for the Enhanced HIPC program as well and attained its completion point in September 2001. This led to the Paris Club members agreeing in November 2001 to substantially reduce the remaining bilateral debt. This led to the complete forgiveness of a considerable volume of bilateral debt. The United States has finished this process and forgiven Mozambique's debt.

Rebounding growth. The resettlement of war refugees and successful economic reform have led to a high growth rate: the average growth rate from 1993 to 1999 was 6.7%; from 1997 to 1999, it averaged more than 10% per year. The devastating floods of early 2000 slowed GDP growth to a 2.1%. A full recovery was achieved with growth of 14.8% in 2001. In 2003, the growth rate was 7%. The government projects the economy to continue to expand between 7%-10% a year for the next 5 years, although rapid expansion in the future hinges on several major foreign investment projects, continued economic reform, and the revival of the agriculture, transportation, and tourism sectors. More than 75% of the population engages in small scale agriculture, which still suffers from inadequate infrastructure, commercial networks, and investment. Yet 88% of Mozambique's arable land is still uncultivated; focusing economic growth in this sector is a major challenge for the government.

Low inflation. The government's tight control of spending and the money supply, combined with financial sector reform, successfully reduced inflation from 70% in 1994 to less than 5% from 1998-99. Economic disruptions stemming from the devastating floods of 2000 caused inflation to jump to 12.7% that year, and it was 13% in 2003. The value of Mozambique's currency, the Metical, lost nearly 50% of its value against the dollar since December 2000, although in late 2001 it began to stabilize. Since then, it has held steady at about MZM 24,000 to U.S.$1.

Extensive economic reform. Economic reform has been extensive. More than 1,200 state-owned enterprises (mostly small) have been privatized. Preparations for privatization and/or sector liberalization are underway for the remaining parastatals, including telecommunications, electricity, ports, and the railroads. The government frequently selects a strategic foreign investor when privatizing a parastatal. Additionally, customs duties have been reduced, and customs management has been streamlined and reformed. The government introduced a highly successful value-added tax in 1999 as part of its efforts to increase domestic revenues. Plans for 2003-04 include Commercial Code reform; comprehensive judicial reform; financial sector strengthening; continued civil service reform; and improved government budget, audit, and inspection capability.

Improving trade imbalance. Imports remain almost 40% greater than exports, but this is a significant improvement over the 4:1 ratio of the immediate post-war years. In 2003, imports were $1.24 billion and exports were $910 million. Support programs provided by foreign donors and private financing of foreign direct investment mega-projects and their associated raw materials, have largely compensated for balance-of-payments shortfalls. The medium-term outlook for exports is encouraging, since a number of foreign investment projects should lead to substantial export growth and a better trade balance. MOZAL, a large aluminum smelter that commenced production in mid-2000, has greatly expanded the nation's trade volume. Traditional Mozambican exports include cashews, shrimp, fish, copra, sugar, cotton, tea, and citrus fruits. Most of these industries are being rehabilitated. As well, Mozambique is less dependent on imports for basic food and manufactured goods because of steady increases in local production.

SADC trade protocol. In December 1999, the Council of Ministers approved the Southern African Development Community (SADC) Trade Protocol. The Protocol will create a free trade zone among more than 200 million consumers in the SADC region. The 10-year implementation process of the SADC Trade Protocol began in 2002 with the immediate elimination of duties on a large list of "zero" rated goods. In 2003, the top tariff rate was lowered from 30% to 25%. Mozambique has also joined the WTO.


Mozambique History, Geography and Climate

The Bantu people settled in Mozambique about 2,000 years ago, setting up the great Mwenemutapa Empire in the centre and south of the country. By about 900 AD trading links had been forged with India, Persia, China and, above all, with the Arab world. Gold was the major lure for these merchants and it was this precious mineral that first attracted the Portuguese to Mozambique, Vasco da Gama landing there in 1498 on his way to India.

The Portuguese set up their first trading post at Sofala in 1505, exporting gold and challenging Arab domination. By the late 17th century ivory had replaced gold as the main export while, some 50 years later, slaves became the major commodity in the history of Mozambique.

Mozambique was governed from Goa until 1752, when it was brought under direct control from Lisbon. As a result of this link with India, numerous Indians trading communities settled in the country, and their influence can still be seen today. Independent Arab trading 'states' survived until the end of the 19th century.

After Portugal's colonial role in Mozambican history was ratified, these trading 'kingdoms' were destroyed leaving the legacy of the Islamic religion in areas where these sultanates had existed. In the early part of the 20th century vast tracts of land were rented to and administered by private companies. Agriculture became the main activity, creating huge numbers of poor, rural black workers, while a policy of white supremacy was pursued.

Repression and exploitation provoked a backlash which led to the growth of the independence movement and the founding of freedom organisations like Frelimo in 1962. Armed struggle led to independence on June 25, 1975. A 17-year-long civil war which then broke out was only resolved in 1992. Multi-party elections were then held in October 1994 with Frelimo emerging as victors. Mozambique, which joined the Commonwealth in 1995, is now building on its stability by promoting foreign investment and tourism.

Geography

Geographically, Mozambique covers an area of over 800,000 sq. km, three times the size of Great Britain. Situated to the south east of the African continent, it shares borders with six other countries, Tanzania, Malawi and Zambia to the north, Zimbabwe to the west, South Africa and Swaziland to the south. The 2,500 km long coastline boasts numerous superb beaches fringed by lagoons, coral reefs and strings of small islands.

The Geography of Mozambique apprises a vast, low, grassland plateau which rises from the coast towards the mountains in the north and west covers nearly half the country's land area. The population is concentrated along the coast and the fertile river valleys. The Zambezi is the largest of the country's 25 rivers. Mozambique is rich in mineral resources such as gold, emeralds, copper, iron ore and bauxite and is currently engaged in oil exploration.

Climate of Mozambique

Tropical to sub-tropical Mozambican climate with coastal temperatures high for much of the year while the interior is warm to mild, even in the cooler, dry season from April to September. In the south the hot, humid rainy season is from December to March, farther north this period lengthens by a few weeks. Coastal northern Mozambique climate is occasionally affected by tropical cyclones. It is usually sunny throughout the year.


Private Sector Development

High transaction costs negatively affect business and trade competitiveness. In a 2016 World Bank report, Mozambique ranked 121 out of 183 countries worldwide for ease of doing business. We help private sector businesses become more competitive, thus generating more trade and investment opportunities. Our programs support policy reforms to make it easier to start a new business, thus increasing the number of small- and medium-sized enterprises and increasing new foreign investment. Over the long term, investments by Mozambique’s private sector will be key to catalyzing economic growth and alleviating poverty.

We focus on increasing growth in the agriculture and tourism sectors, which show strong potential to attract private investment and create jobs. Our programs provide business development services and access to financial services that help small- and medium-sized enterprises become more efficient and productive. In turn, they become more competitive in local, regional and international markets, and better able to attract private investment to help their businesses grow.


Economy

Where do people work in Mozambique?

Mozambique is one of the poorest countries in the world. 69 out of 100 people live below the poverty line. Even if the country’s economy is growing, few Mozambicans really benefit from it. There is a wealthy elite in the country who siphon off the most money.

A large part of the people work in agriculture and this is geared towards self-sufficiency. So people grow what they can use themselves. Only a small part of the total area is used for agriculture. In addition to agriculture, fishing is also important on the coast.

Many raw materials are stored in the earth

Mozambique has many raw materials such as marble, iron ore, coal, gold, natural gas, bauxite and titanium. Natural gas was discovered off the Mozambican coast in 2011. But it will still take some time before the money from the production of natural gas really gets into the government’s coffers. The wealth of raw materials is hardly used. Even if you did, the question remains whether the money will not only benefit a few and not the poor in the country. For more articles on Mozambique and Africa, please visit franciscogardening.

The problem with Mozambique is that the products that are exported, such as nuts, crustaceans, sugar or cotton, do not make as much money as the products that are imported. Machines or electronic items that are necessary for the production of goods cost money. And despite agriculture, Mozambique also has to import food such as rice or grain, which could actually be produced in the country itself.

Nevertheless, a lot has changed in Mozambique in recent years. When the terrible civil war ended in 1992, the country became attractive to foreign countries. Even if the economy cannot sustain itself and is still dependent on international aid, some things have nevertheless improved.

Mozambique’s economy is growing now, but it is still very unstable. Many people are not adequately trained to take on more demanding work. The high AIDS rate, especially among the people who would be most important to work in the country, is an additional problem.

People hope for tourism

Unfortunately, the country’s infrastructure is poor. There are few well-developed roads and railway lines. But Mozambique is primarily hoping for tourism. Mozambique is a beautiful country and, like other South African countries, could also attract people from abroad who want to get to know the treasures of the animal world and the nature of the country.

Over 2500 kilometers of coastline with reefs and interesting landscapes are still untapped. Then there are the national parks, in which above all the animal world of the country is protected. However, some improvements are still needed so that tourists can come and leave money in the country. Money that is urgently needed for the expansion of the health and education system.


Mozambique Economy - History

This dossier includes a small selection of articles and reports about the macro-economic condition of Mozambique from the 1970s until 1995. Please note that much if not most of this reportage is not and does not claim to be in-depth or "scientific" analysis of economic trends for this kind of analysis, please refer to the academic literature. The dossier also contains some material on statistical policy.

The period covered by the dossier saw dramatic shifts in macro-economic policy in Mozambique &ndash from the exploitative economic policies of the colonial regime, through the prolonged attempt at a planned economy from 1974 to 1986, followed by the structural adjustment of the PRE period after the death of Samora Machel, through to the "free market" policies of the post-1994 pluralist epoch.

MHN plans to add pages including articles on specific economic sectors (e.g. cashew, energy, finance and banking, domestic trade, etc.) to this website in the near future.

MHN Resources

The Economic Impact of Political Pluralism, 1994-

&loz 4 August 1996
Abreu Sumbane. Matutuíne: população clama pela reposição de infra-estrutura. Domingo [Maputo], 4 August 1996, page 19. Click here to view or download a PDF file [492 Kb.]
People in Matutuíne are having to walk 50 to 70 kilometres to access health services or food supplies the situation has worsened after refugees returned.

&loz 3 August 1996
Comunidade internacional ignora independência económica de Moçambique, acusa Silas Serqueira, membro do Conselho Português para a Paz e Cooperação. Notícias [Maputo], 3 August 1996. Click here to view or download a PDF file [199 Kb.]
Serqueira, a Portuguese specialist on southern Africa who spent many years in clandestine activity for the PCP, later took up an academic career but remained an activist as well.

&loz 1 September 1995
Meshack Mabogoane. Mozambique well on its way to a free market economy. Weekly Mail and Guardian, 1 September 1995. Click here to view or download a PDF file [129 Kb.]

&loz 2 June 1995
Reg Rumney. Mozambique's ambitious privatisation plan. Weekly Mail and Guardian, 2 June 1995. Click here to view or download a PDF file [113 Kb.]

&loz 23 January 1994
Tendai Dumbutshena. How to survive on R45 a month. Sunday Times [Johannesburg], 23 January 1994. Click here to view or download a PDF file [1.2 Mb.]

&loz 3 January 1994
País mais pobre do ano &ndash Banco Mundial. Século do Joanesburgo 3 January 1994. Click here to view or download a PDF file [72 Kb.]
Mozambique was ranked the poorest country in the world for 1992 by the World Bank.

&loz January 1994
Martine Karakatounian. Food aid policies distort local markets. African Business January 1994, pages 24-25. Click here to view or download a PDF file [91 Kb.]

The Economic Rehabilitation Program (ERP), 1987-

&loz 4 October 1993
Moçambicanos estão com um rendimento «per capita» de apenas 63.4 dólares. Século do Joanesburgo 4 October 1993, page 15. Click here to view or download a PDF file 122 Kb.]

&loz 21 July 1993
Devolver a dignidade ao povo passa pela reconstrução da economia e pelo desenvolvimento das zonas rurais &ndash reconheceu o primeiro-ministro no seminário «Moçambique: compromisso com o futuro». Século do Joanesburgo 21 July 1993. Click here to view or download a PDF file 126 Kb.]

&loz 11 February 1993
Civil war survivors fight bankruptcy economy. Daily Gazette [Harare], 11 February 1993. Click here to view or download a PDF file [83 Kb.]

&loz 8 January 1993
Mozambique: economic reality. Africa Confidential [London], vol.34, no.1, 8 January 1993. Click here to view or download a PDF file [80 Kb.]

&loz 1993
Mozambique: the high cost of peace. SADC Top Companies Report, 1993, page 66. Click here to view or download a PDF file [169 Kb.]

&loz 9 October 1992
Local business pleads for aid before doors open. South Scan, 9 October 1992. Click here to view or download a PDF file [31 Kb.]

&loz 2 August 1992
Em tempo de paz, dos desafios que esperam aos empresários. Domingo, 2 August 1992. Click here to view or download a PDF file [56 Kb.]

&loz July 1992
Guy Mhone. Mozambique: structural adjustment in a war economy. Southern African Political and Economic Monthly, July 1992, pages 14-17. Click here to view or download a PDF file [548 Kb.]

&loz 7 May 1992
Tony Carnie. Maputo clawing itself out of the gutter. Natal Mercury, 7 May 1992. Click here to view or download a PDF file [125 Kb.]

&loz 14 February 1992
The economy stirs in Maputo. Natal Mercury, 14 February 1992. Click here to view or download a PDF file [89 Kb.]

&loz 6 February 1992
Mozambique looks to a better 1992. Business Herald [Harare], 6 February 1992, page 11. Click here to view or download a PDF file [129 Kb.]

&loz 25 January 1992
Luís José Loforte. Homens sem rosto. Notícias, 25 January 1992. Click here to view or download a PDF file [223 Kb.]

&loz 22 January 1992
Gonçalves Gauth. Oitenta famílias coabitam com bois numa quinta na Beira: Conselho Executivo diz que vai tomar medidas contra o infractor. Notícias, 22 January 1992. Click here to view or download a PDF file [155 Kb.]

&loz 20 January 1992
Mozambique steps up free enterprise. Chronicle [Bulawayo], 20 January 1992. Click here to view or download a PDF file [146 Kb.]

&loz 20 October 1990
José Martins Barata. Moçambique: as leis inexoráveis do mercado. Expresso, 20 October 1990. Click here to view or download a PDF file [267 Kb.]

&loz 24 July 1990
Descentralizar para libertar iniciativa. Notícias, 24 July 1990. Click here to view or download a PDF file [281 Kb.]

&loz 5 May 1990
Graham Lord, The sewer of Africa. The Spectator, 5 May 1990, pages 19-20. Click here to view or download a PDF file [278 Kb.]

&loz 22 January 1989
Espero que o PRE não piore: Rosa Paulo dos Santos, 17 anos. Domingo, 22 January 1989. Click here to view or download a PDF file [97 Kb.]

&loz 18 August 1988
Mozambican economy shows growth. MIO News Review, no.135, 18 August 1988. Click here to view or download a PDF file [52 Kb.]

&loz 14 October 1987
Dez meses depois do PRE, é encorajador crescimento atingido, considera Ministro Osman. Notícias, 14 October 1987. Click here to view or download a PDF file [46 Kb.]

&loz 5 September 1987
Peter Goodspeed. Mozambique's rulers inherited shell of a nation. Toronto Star, 5 September 1987. Click here to view or download a PDF file [123 Kb.]

&loz September 1987
Reativar a economia e os transportes. Cadernos de Terceiro Mundo, no.101, September 1987, pages 18-21. Click here to view or download a PDF file [88 Kb.]

The Planned Economy, 1974-1986

&loz 3 January 1984
Bernardino Duarte. O maior responsável chama-se Frelimo. O Diabo, 3 January 1984. Click here to view or download a PDF file [149 Mb.]

&loz 3 January 1984
National Planning Commission. Economic report. (Maputo: CNE, January 1984. Click here to view or download a PDF file [3.5 Mb]
This 68-page mimeographed report caused a stir when it was first distributed in diplomatic circles. Supplementary tables were supposedly distributed to the embassies of the socialist bloc countries.

&loz 23 May 1983
Mozambique leader announces plans for more private enterprise. New York Times, 23 May 1983. Click here to view or download a PDF file [89 Kb.]

&loz 30 April 1983
Mozambique: three-year programme. Africa Research Bulletin (Economic), 30 April 1983. Click here to view or download a PDF file [100 Kb.]

&loz 23 April 1983
Maputo: problemas económicos no centro do congresso da Frelimo. Expresso, 23 April 1983. Click here to view or download a PDF file [162 Kb.]

&loz 26 March 1983
Samora Machel critica economia moçambicana. Expresso [Lisbon], 26 March 1983, page 2. Click here to view or download a PDF file [74 Kb.]

&loz 4 March 1983
Michael Holman. Mozambique carries brave banner through crises. Financial Times, 4 March 1983.Click here to view or download a PDF file [157 Kb.]

&loz 3 December 1982
Quem é o dono da política? Notícias, 3 December 1982. Click here to view or download a PDF file [138 Kb.]

&loz 5 October 1980
Cynthia Stevens. Mozambicans turn to rebuilding nation. Los Angeles Times, 5 October 1980. Click here to view or download a PDF file [209 Kb.]

&loz 6 October 1978
Mozambique: changing tune. Africa Confidential, vol.19, no.20, 6 October 1978, pages 1-2. Click here to view or download a PDF file [433Kb.]

&loz 14 April 1978
Mozambique: economic pragmatism. Africa Confidential, vol.19 no.8, 14 April 1978, pages 2-4. Click here to view or download a PDF file [1.1 Mb.]

&loz 14 November 1977
Michael T. Kaufman. Mozambique is viewed as Africa's best hope for the flowering of socialism's "New Man". New York Times, 14 November 1977. Click here to view or download a PDF file [305 Kb.]

&loz December 1976
Tony Hodges. Mozambique: Machel wants production not ideology. African Development, December 1976, page 1236-1237. Click here to view or download a PDF file [327 Kb.]

&loz 1 October 1976
«Sabotage économique» à la firme Monteiro et Giro: une commission administrative est nommée. Marchés Tropicaux et Méditerranéens, 1 October 1976. Click here to view or download a PDF file [57 Kb.]

&loz 3 November 1975
Bridget Bloom. Mozambique between revolution and pragmatism. Financial Times, 3 November 1975. Click here to view or download a PDF file [279 Kb.]

The Colonial Economy to 1974

&loz 20 September 1970
A economia de Moçambique na década de 60. Tempo, no.1, 20 September 1970, pages 63-67. Click here to view or download a PDF file [729 Kb.]

This page was last updated on Thursday 27 May 2010.
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«. vens ver os segredos escondidos. ». Os Lusíadas, V, 42.


Mozambique Economic Outlook

The onset of the COVID–19 pandemic caused a sudden stop to Mozambique’s good economic performance. Real GDP contracted by an estimated 0.5% in 2020, the first decline in 28 years, after growing 2.2% in 2019. A slowdown in construction, tourism, and transport, and a decrease in demand for commodities exports were the main drivers of the deceleration. Economic activity was also hurt by the escalating conflict in the northern province of Cabo Delgado, which has displaced more than 250,000 people and resulted in more than a thousand deaths. The economic contraction was expected to drag 850,000 people below the international poverty line in 2020, an increase of 1.2 percentage points to 63.7% of the population, according to the World Bank, while GDP per capita was expected to contract by –3.4% in 2020. Despite negative growth, a slight increase in inflation was expected for 2020, from 2.8% in 2019 to 3.1%, pushed by a 21.7% depreciation of the metical against the US dollar. The Monetary Policy Committee reduced the policy interest rate by 250 basis points from March through August, to 10.25%, to ensure liquidity and minimize potential credit crunches in the private sector. Nevertheless, non-performing loans, which were already high at 10.2% in 2019, increased to 12.6% in June 2020 as businesses struggled to meet their obligations. Both the fiscal and external balance deteriorated. The fiscal deficit was estimated to reach 7.0% of GDP in 2020, larger than the 2.7% deficit in 2019, pushed by lower revenues from tax relief and the economic slowdown and increasing public debt, which already was high at 108.4% of GDP in 2019. The current account deficit was estimated to widen to 30.8% of GDP in 2020 from 19.9% in 2019, mainly because of lower export earnings. International reserves remained at 7 months coverage of imports until November 2020, excluding megaprojects, the same as in December 2019.

Outlook and risks

Growth prospects are more positive for the mediumterm, with GDP expected to grow by 2.3% in 2021 and 4.5% in 2022, when it will surpass the prepandemic level on the back of gas investments. Inflation is expected to average 5.3% during 2021–22, pushed mostly by domestic demand during an economic recovery. Higher domestic growth and international demand for commodities are expected to generate more tax revenues and support resumption of the fiscal consolidation process. The budget deficit will narrow to 5.4% in 2021 and to 3.0% in 2022. The current account deficit will fall to 25.6% in 2021 but will remain elevated at 24.8% in 2022, above the prepandemic level of about 20%. Poverty would fall to 63.1%. The main risks to such a recovery are climate shocks, low commodity prices, and increasing military disturbances in the center and north of the country— which could increase military expenditures, disrupt regional commerce, and limit creating local content and jobs associated with the megaprojects value chain.

Financing issues and options

The already constrained national budget and the high levels of public debt offer limited fiscal space to stimulate private sector–led growth and leverage social programs to increase the coverage of vulnerable groups to minimize the short and medium term impacts of the pandemic. To open room for such policies, the country should pursue financing options backed by donors’ grants or highly concessional loans to reduce the impact on the budget during the crisis, while allowing for the resumption of fiscal consolidation in the medium term. Debt service reductions from the G20 debt moratorium should be used to offset the loss in tax revenues. In the medium-term, the country should explore fiscal and tax policies to stimulate the domestic nonextractive sector to foster job creation and reduce the economy’s vulnerability to commodity shocks.


Slave trade banned

1842 - Portugal outlaws slave trade from Mozambique, but clandestine trade continues for decades.

1878 - Portugal leases large tracts of territory to trading companies, who use conscript African labour to further their interests and build infrastructure.

1932 - Portugal breaks up trading companies and imposes direct rule over colony.

1950s-60s - Colonial economy thrives, attracting thousands of Portuguese settlers.

1962 - Exiled activists form Mozambique Liberation Front - Frelimo - headed by Eduardo Mondlane.

1964 - Frelimo forces begin war of independence. Guerrilla tactics frustrate Portuguese and Frelimo take control of much of north.

1974 - Military coup in Portugal, new government agrees independence with Frelimo. More than 250,000 Portuguese inhabitants leave.


Mozambique - Country history and economic development

11TH CENTURY. Arab and Swahili traders settled along the coast of present-day Mozambique. The Kiswahili language developed as the most used language for trade between the newcomers and the Bantu inhabitants of the interior. Sofala became a particularly important gold and ivory exporting center.

16TH CENTURY. Following Vasco da Gama's visit to Mozambique in 1498, the Portuguese began extending their influence along the coasts of East Africa. Though they succeeded in establishing their commercial dominance on the coast of Mozambique, their presence in the interior was severely limited. Portuguese traders engaged in selling gold, ivory, and slaves.

17TH CENTURY. Several Portuguese adventurers eventually founded feudal kingdoms in the interior, where they created large estates called prazos on which Africans were forced to work. Though the prazeros — the owners of the estates—were theoretically subordinate to the Portuguese crown, they ruled their kingdoms ruthlessly and autonomously.

1752. Mozambique became a separately administered Portuguese territory, under the head of a captain-general.

1820s. The Portuguese were displaced from southern Mozambique by groups of Nguni-speaking people from South Africa, though they still retained nominal colonial control.

1880s. The ignominious scramble for Africa commenced among the European powers, and Portugal's claims to Mozambique were officially recognized. The British and the Portuguese subsequently established treaties demarcating colonial zones in southern and eastern Africa.

1890-1920. Portugal forcefully established its hegemony over the entire Mozambique region in a series of wars against the African populace. Thereafter, a coercive economy was established in which Africans were forced to labor on lands taken over by whites in the production of export crops.

1950-1975. Throughout the 1950s, a nationalist anti-colonial sentiment developed, eventually crystallizing in the united-front movement called FRELIMO. The latter commenced a guerrilla war against the Portuguese in 1964, which, in conjunction with a coup dɾtat in Portugal that placed an anti-colonial regime in power, enabled Mozambique to achieve independence in 1975 under the leadership of Samora Machel. A massive exodus of Portuguese settlers followed, leaving the country with a complete lack of professional expertise and productive machinery.

1975-1992. FRELIMO implemented a socialist economy based on extensive nationalization of industry, state-controlled land reform, and a heavily supported social sector. By the 1980s, Mozambique became a Ȭold War battlefield" in which RENAMO, a counter-insurgency organization funded by the racist regime in South Africa, waged war against the government. After much destruction and the complete dissolution of the economy, a truce was implemented between RENAMO and FRELIMO in 1992. The former subsequently became a legitimate political party and was integrated into a newly created multi-party democratic system.

1990s. Under the leadership of Joaquim Chissano— Machel's successor𠅏RELIMO abandoned its Marxist orientation. The World Bank and the IMF, which had established limited control over Mozambique as early as 1984, fully imposed their structural adjustment programs , emphasizing mass privatization, trade liberalization, currency devaluation, foreign investment, and stabilization policies. Though a certain amount of economic growth has occurred throughout the "SAP era," there has also been an increase in poverty and a foreign take-over of the economy.


Mozambique Economy - History

Maputo &mdash Mozambique, which was affected by an unprecedented two tropical cyclones over a matter of weeks, is still reeling from the impact a month after the latest disaster. But resultant devastation caused by the cyclones could impact the country's elections as concerns are raised over whether the southern African nation can properly hold the ballot scheduled for later this year.

Currently, Mozambique does not have sufficient funds to go to the polls on Oct. 15, with the national electoral body only having 44 percent of the required 235 million dollars needed to hold the election.

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Watch the video: MOZAMBIQUE Current GDP Rate u0026 Population. Export u0026 Import, Capital (January 2022).