embassy: Avenida Kenneth Kuanda 193, Maputo
mailing address: P. O. Box 783, Maputo
telephone: [258] (1) 492797
FAX: [258] (1) 490114
Flag description: three equal horizontal bands of green (top), black, and yellow with a red isosceles triangle based on the hoist side; the black band is edged in white; centered in the triangle is a yellow five-pointed star bearing a crossed rifle and hoe in black superimposed on an open white book
Mozambique Economy
Economy - overview: Before the peace accord of October 1992, Mozambique's economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries in the world. Since then, Mozambique has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized. A value-added tax, introduced in 1999, launched the government's comprehensive tax reform program. Pending are much needed commercial code reform and greater private sector involvement in the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates relatively stable. Albeit from a small base, Mozambique's economy grew at an annual 10% rate in 1997-99, one of the highest growth rates in the world. Growth slowed and inflation rose in 2000 due to devastating flooding in the early part of the year. Both indicators should recover in 2001. The country depends on foreign assistance to balance the budget and to pay for a trade imbalance in which imports greatly outnumber exports. The trade situation should improve in the medium term, however, as trade and transportation links to South Africa and the rest of the region have been improved and sizeable foreign investments are beginning to materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture, fishing, timber, and transportation services. Mozambique has received a formal cancellation of a large portion of its external debt through an IMF initiative and is scheduled to receive additional relief.
GDP: purchasing power parity - $19.1 billion (2000 est.)
GDP - real growth rate: 3.8% (2000 est.)
GDP - per capita: purchasing power parity - $1,000 (2000 est.)