Mozambique is an independent republic which lies on the south-east coast of Africa and forms part of the Southern African region. The capital city is Maputo. Other major towns are Beira and Nampula and the ports of Quelimane and Nacala.
The official language is Portuguese. Mozambique has a centrally planned economy although the government is instituting free-market reforms. The local currency is the Metical (plural meticais). (US$ / Metical - current exchange rate).
The international time zone for Mozambique is GMT +2. The international dialling code is +258. There are several international airports, notably at Maputo, Beira and Nampula, while many airlines fly to Mozambique. LAM - Mozambique Airlines was transformed into a Limited Company in 1998. The State holds 91% of the shares of the new company and managers, technicians and LAM workers hold the remaining 9% of the shares.
Mozambique has a total of 4,787 km of railway. Mozambique Ports and Railways or Portos e Caminhos de Ferro de Mocambique (CFM) is the parastatal authority that oversees the railway system and its connected ports. All visitors to Mozambique require visas.
There is a risk of contracting bacterial and protozoal diarrhea, hepatitis A, typhoid fever, malaria, plague, schistosomiasis and rabies. Only bottled water with unbroken seals should be consumed and tap water should be avoided. Medical services may be very expensive and advance payment may be required. Insurance needs to be arranged prior to arrival in Mozambique and individual risk assessment is recommended.
Mozambique is one of Africa’s success stories and is making economic progress, although the country is still dependant on foreign assistance. Over the last 15 years, Mozambique has reached macroeconomic stability and experienced impressive economic growth. Access to public services has increased significantly and there have been investments in infrastructure and institutional and legal reforms.
The economy performed well in 2010, growing by an estimated 8.1%. There has been massive foreign investment in coal projects over the last 2 years, which will see coal extracted from the projects in the Tete province adding to exports in 2011. Notwithstanding the sustained GDP growth over the past ten years, however, poverty remains widespread in Mozambique. Job creation also remains below expectations.
Mozambique’s GDP in 2010 was estimated at $21.81 billion, an 8.3% increase on the previous year.. The economy is, however, heavily reliant on aluminium, which accounts for about one-third of exports. The sharp decline in aluminium prices during the global economic crisis lowered GDP growth by several percentage points.
Mozambique has an agriculturally based economy. Industrial development has been slow as a result of the civil war that destroyed the transport system and other infrastructure. Mozambique has considerable mineral resources despite limited exploitation, while the country’s oil and gas industry also has potential. Electricity is provided by the parastatal utility, Electricidade de Mozambique (EDM). The country exports electricity to South Africa from the Caborra Bassa hydro-electric facility.
Mozambique produces cotton, cashew nuts, sugarcane, tea, cassava, corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers, beef and poultry. Main industries include food, beverages, chemicals (fertilizer, soap, paints), aluminium, petroleum products, textiles, cement, glass, asbestos and tobacco.
Mozambique exports aluminium, prawns, cashews, cotton, sugar, citrus and timber, as well as bulk electricity.
The International Human Development Index ranks Mozambique 165 out of 169 countries with comparable data. Between 1980 and 2010 Mozambique's HDI rose by 1.3% annually from 0.195 to 0.284 today.
Fitch Ratings affirmed Mozambique's long-term foreign currency Issuer Default Rating (IDR) at 'B' and long-term local currency IDR at 'B+' in August 2011. Outlook on the long-term IDRs is stable, while Fitch has also affirmed Mozambique's short-term IDR at 'B' and country ceiling at 'B'.
Mozambique is planning to re-negotiate legislation on taxes and royalties with mining companies by the end of 2011. It is hoped that this legislation could significantly increase government revenues.
Mozambique is a signatory of the Millennium Declaration and has adopted the MDGs. A lot has been accomplished in the country since its independence, but more needs to be done if Mozambique is to achieve the eight MDGs by 2015.
Mozambique suspended its participation in COMESA in 1995 and is now a member of the Southern African Development Community (SADC).
Mozambique imports machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs and textiles, particularly from South Africa, China, Australia, India and Portugal. Export commodities include aluminium, cashews, prawns, cotton, sugar, citrus, timber, bulk electricity and natural gas.
Two Industrial Free Zones (IFZs) are to be created in Nacala in 2011, followed by five more IFZs and one Special Economic Zone (SEZ) before 2014. The Moatize-Nacala corridor has nevertheless the potential to have a large impact on the economy. Nampula and Zambezia provinces have considerable agricultural potential and large populations, and exchanges with landlocked Malawi, Zambia and Zimbabwe could be exploited.