Economy overview: Prior to the peace agreement in 1992, Mozambique’s economy was in decline due to a protracted civil war and inefficient socialist governance. In 1994 Mozambique was one of the poorest countries in the world. Since then, Mozambique has implemented a number of economic reforms. Almost all sectors of the economy have been liberalized to some extent. More than 900 state enterprises were privatized. The value added tax, introduced in 1999, launched a comprehensive program of tax reform. Next up is much-needed trade law reform; it is also necessary to increase the presence of private entrepreneurship in the transport, telecommunications and energy sectors. Since -1996, inflation has remained low and the exchange rate relatively stable. In 1997-99 the economy grew by 10% annually – this is one of the highest rates in the world. Growth slowed in 2000 and inflation rose due to devastating flooding in the first half of the year. Both indicators should return to their previous values in 2001. The country depends on foreign aid to cover the budget and foreign trade deficit (imports are several times higher than exports). The trade balance should improve in the medium term as the country’s trade and transport links with South Africa and the rest of the region are being established and foreign investment is on the rise. Investments are directed to the metallurgical industry (aluminum and steel production), natural gas extraction, agriculture (supplying cotton and sugar), fishing, wood processing, power generation, agriculture, fishing, timber industry and transport sector. Mozambique has received an official decision to write off a large part of the external dog at the initiative of the IMF and should receive additional assistance. GDP: at purchasing power parity – $19.1 billion (2000 est.). Real GDP growth rate: 3.8% (2000 est.). GDP per capita: at purchasing power parity – $1,000 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 44%; industry: 19%; services: 37% (1999 est.). Proportion of population below the poverty line: 70% (2000 est.). Percentage distribution of family income or consumption: per 10% of the poorest families: 2.5%; by the top 10% of families: 31.7% (1996-97). Inflation rate at consumer prices: 11.4% (1999 est.). Labor force: 7.4 million (1997 est.). Employment structure: agriculture 81%, industry 6%, services 13% (1997 est.). Unemployment rate: 21% (1997 est.). Budget: revenues: $466.9 million; expenditures: $1.004 billion, including capital expenditures of $502.5 million (2000 est.). Spheres of economy: food industry, beverage production, chemical industry (production of fertilizers, soap, dyes), oil refining, textile industry, production of cement, glass, asbestos, tobacco products. Growth in industrial production: 7.2% (1999). Electricity generation: 2.3 billion kWh (1999) Sources of electricity generation: fossil fuels: 13.04%; hydropower: 86.96%; nuclear fuel: 0%; others: 0% (1999). Electricity consumption: 307 billion kWh (1999) Export of electricity: 1.9 billion kWh (1999). Electricity import: 68 million kWh (1999). Agricultural products: cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice, tropical fruits; beef, poultry. Exports: $390 million (free on board, 2000 est.) Exports: shrimp 40%, cashews, cotton, sugar, copra, citrus fruits, coconuts, timber (2000). Export partners: EU 27%, South Africa 26%, Zimbabwe 15%, India 12%, US 5%, Japan 4% (1999 est.). Imports: $1.4 billion (S.I.F., 1999 est.) Import articles: food, clothing, farm equipment, oil, transport equipment (1997). Import partners: South Africa 44%, EU 16%, US 6.5%, Japan 6.5%, Pakistan 3%, India 3% (1999 est.). External debt: $1.4 billion (2000 est.) Economic aid recipient: $1.04 billion (1998) Donor economic aid: Currency: metical. Currency code: MZM. l Exchange rate: MZM/USD – 17,331.0 (January 2001), 15,199.8 (2000), 12,775.1 (1999), 11,874.6 (1998), 11,543.6 (1997), 11 293.8 (1996). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 65 354 (2000). Mobile cellular phones: 18,500 (2000). Telephone system: system of medium quality, but not publicly available (density of telephones is 3.5 telephones per 1,000 people); domestic: the system consists of terrestrial links and a trunk connection via microwave radio relay and troposcatter communication; international: satellite ground stations – 5 Intelsat (2 Atlantic Ocean and 3 Indian Ocean). Broadcast stations: AM – 13, FM – 16, shortwave – 12 (2000). Radio receivers: 730,000 (1997). Television broadcast stations: 1 (2000). Televisions: 67,600 (2000). Internet Country Code: mz Internet Service Providers: 8 (2000). Number of users: 6,250 (2000).
Transport
Transport Railways: total length: 3,131 km; narrow gauge: 2,988 km (1.067 m gauge); 143 km (0.762 m gauge) (1994). Roads: total length: 30,400 km; coated: 5,685 km; unpaved: 24,715 km (1996 est.) Waterways: about 3,750 km. Pipelines: for crude oil – 306 km; for oil products – 289 km; note: pipelines do not work. Ports and harbors: Beira, Inhambane, Quelimane, Maputo, Nacala, Pemba. Merchant fleet: total: 3 vessels (displacement 1,000 tons or more) with a total displacement of 4,125 gross register tons / 7,024 long tons of gross tonnage; ships of different types: cargo ships -3 (2000 est.). Airports: 168 (2000 est.). Airports with paved runways: total: 22; over 3,047 m: 1; from 2438 to 3047 m: 3; from 1524 to 2437 m: 10; from 914 to 1523 m: 3; less than 914 m: 5 (2000 est.). Airports with unpaved runways: total: 146; from 2438 to 3047 m: 1; from 1,524 to 2,437 m; 16; from 914 to 1,523 m: 37; less than 914 m: 92 (2000 est.).
Armed forces
Branches of the armed forces: army, naval unit, air force and air defense, police. See militarynous.com to know more about Mozambique Military. Total military manpower: men 15 to 49: 4,627,052 (2001 est.). Eligible for military service: men aged 15 to 49: 2,670,933 (2001 est.). Number of persons reaching military age each year: Military spending in dollar terms: $35.1 million (2000 est.). Military spending as part of GDP: 1% (2000 est.).
International Issues
International issues International disputes: no. Illicit drugs: transit point for hashish and heroin from South Asia and South American cocaine, mostly destined for European and South African markets; production of marijuana (for local consumption) and methaqualone (for export to South Africa).
