Economy - In the past decade Mozambique has seen strong economic growth and the forecasts are that GDP growth will remain strong, averaging 7-8% per year, driven by rising cash crop production and growth in commerce, communications, transport and tourism. In 2003 agriculture, fishing and forestry contribute 26% to GDP and employ around 80% of the economically active population. Inflation is around 3.7% in June 2007 from 9.4% in June 2006.
Agriculture - The food crop sector (maize, cassava, beans, rice, peanuts, sorghum and millet) has experienced strong and sustained growth for over a decade during which total cereal production has more than doubled. The export of cash crops has picked up in recent years, although performance varies widely and production is below potential. Traditional export crops have shown sluggish growth. Newer, more dynamic sectors include tobacco, sugar and horticulture. Other crops that are being promoted are pigeon pea, sunflower, baby corn, soybean, pepper and paprika.
Forestry - Mozambique has important areas of productive woodland. Tropical hardwood is exported in unprocessed logs. Unregulated cutting has increased rapidly in recent years. The Forestry laws give communities more ownership rights over their local forestry reserves.
Fisheries - The prawn sector remains one of the bigger export earners, although international prawn prices have reduced its importance.
Mining - Mozambique has many mineral resources, but long colonial and civil wars and resulting lack of geological data have constrained development. However, new investments are beginning to revive the sector, which soon will be dominated by titanium.
Manufacturing - Mozambique’s largest industrial concern is the Mozal aluminium smelter. Other dynamic manufacturing sectors include construction materials, agricultural processing, beverages and consumer goods. The sector suffers from shortages of skilled labour, domestic capital, high borrowing costs, bureaucratic obstruction, and a small domestic market. Production costs are high, making it difficult to compete against cheaper imports from South Africa and abroad.
Banking - Half of all the branches of financial institutions are concentrated in Maputo city and Maputo province, but new initiatives (among others supported by Rabobank) are springing up to extend the network to the rural areas.
Tourism - Despite great potential of beach and safari holidays, Mozambique’s tourism industry is underdeveloped. Apart from hotels in the capital, it consists mainly of small-scale beach lodges and a modest backpacker sector. Investment however is rapidly increasing and larger hotels and lodges of the up market type are appearing in the south and north of the country. The main obstacles to expansion of the sector are a weak infrastructure, lack of human resource, poor application of land title legislation, bureaucratic obstruction, Mozambique’s remote location and expensive international air connections.

Facts and Figures