Mozambique 

Mozambique landenbeleid

Mozambique country policy

Ook beschikbaar in Nederlands

Policy established 20 December 2007

  • Off cover
  • DSA/DSF: Public buyers at least 35% concessional
  • Public buyers: ORIO facility
  • Private buyers: SIF facility

Country class: 6

Restrictions

  • Special conditions, consult your accountmanager

Mozambique country facts

Atradius DSB Economic Research
Country Report last updated :  8 December 2009 

Country :  MOZAMBIQUE  

Political Situation
Relatively Stable

Head of state
President Armando Guebuza (since February 2005). PM Luisa Diogo.

Form of government
One party government by the (former communist) Frente de Libertação de Moçambique (Frelimo). Main opposition party is traditionally former rebel group Resistencia Nacional de Moçambique (Renamo), however the newly founded MDM is becoming more and more important.

Internal Economic Situation
Coal Projects Coming On Steam

General situation
Good macro-economic performance, but severe weaknesses remain at the micro-level. Economic growth has been structurally high, but largely driven by several mega-projects including the construction of the Mozal aluminium smelter and the construction of a natural gas pipeline to South Africa. Mozambique remains extremely dependant on concessional finance and grants for these projects. Mozambique suffers from a poor investment climate, with a weak legal system and lots of red tape. Inflation seems finally under control. HIV/AIDS is a severe problem: 15% of the population is infected and life expectancy has already fallen from 47 years to 40 years (!). Small and shallow banking sector is isolated from the international credit crisis. NPL’s have decreased to a very low level of 2.6%.

External Economic Situation
Structural Current Account Deficits

Main sources of foreign exchange
Exports of aluminum (60%), natural gas (14%), electricity, fish (5%), cotton (3.5%), sugar (2.2%), tobacco (2.5%), titanium; donor support.

Main foreign markets
EU (64%, Netherlands 60%), South Africa (16%), Zimbabwe (3%).

Main expenses of foreign exchange
Imports of capital goods, iron, alumina, food and crude oil.

Balance of payments 
BoP is dominated by import of capital goods related to mega-projects and inflow of capital also related to these projects 

 

Contact Atradius

Marijn Kastelein
Economist
Tel: + 31 (0) 20 553 2403
Email: marijn.kastelein@atradius.com