Economy & Infastructure

Infrastructure in Mozambique is generally poor, especially in areas that were heavily damaged in the war.

1. Over all they have very poor transportation, approx. 30,400 km of highways, and only 5,685 km of them are paved. Most of the remaining 24,175 kilometers are almost impossible to travel on during the rainy season.
2. The World Bank is currently implementing an $850 million program to rebuild the road network, along with the coastal port system.
3. In addition to the road network, there is a total of 3,131 kilometers of railway, as well as 104 airports, with many of them unpaved.
4. Major rail lines connect to South Africa, Malawi, and Zimbabwe. Malawi and Zimbabwe are dependent upon Mozambique's railway’s because they use Mozambique’s ports (they are both landlocked).
5. Mozambiques water ports are located in Biera, Maputo, and Nacala.
6. Aluminum is takes up 1/3 of there exports, others include  cotton, sugar, citrus, timber...etc. They import machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs and textiles.
7. GDP: 10.21$ billion, 40.8% of our GDP is in debt.
8. 1 million children do not attend school.
9. Current Jobs: agriculture: 81%, industry: 6%, services: 13% (1997 est.)
10. Unemployment is at 21%

After gaining independence in 1975, Mozambique was one of the world's poorest countries. A brutal civil war from 1977-92  made things even worse. In 1987, the government tried to make an effort in stabilizing the economy. These steps, combined with donations and with improved political stability (since the multi-party elections in 1994), have dramatically improved Mozambique.

However, Mozambique remains dependent upon foreign assistance for more than half of its annual budget, and 70% of the population still remains below the poverty line. Agricultural work continues to employ the people’s majority.

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 fuel, water, electricity, and 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.