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					                                                                                   Country Brief

                                                                                     June 19, 2009

Several mega-projects that involve mining the country’s coal reserves, building hydropower facilities and
modernizing and rehabilitating the railway and the main international airport have helped to spur
economic activity at a rapid pace. However, these projects have not created many jobs and as a result,
the unemployment rate remains very high. The largest source of employment is agriculture, which is
dominated by subsistence farmers. The manufacturing sector accounts for only 14.5% of GDP.
Mozambique is one of the poorest countries in the world. More than two-thirds of the population lives
below the national poverty level. It is heavily dependent upon foreign assistance for budgetary revenue
and to finance capital projects to upgrade the inadequate infrastructure.


Mozambique is a country in Southeastern Africa that has a
tropical and sub tropical climate (the rainy season is October
to March). It borders the Indian Ocean, Tanzania, Malawi,
Zimbabwe, Swaziland and South Africa and is slightly smaller
than twice the size of California. The population is 21,669,278.
Maputo is the capital, commercial center, the main port and
the largest city. It has a population of 1,191,613. Arable land
accounts for 5.4% of the area of the country, 34.5% of the
population lives in urban areas and 24.6% of the country is
covered by forests. There are 2,470 km (1,534 miles) of
coastline and 0.3% of the land area is devoted to permanent
crops. The median age is 17.4 years, the birth rate is 38.0 per
1,000 people, 44.3% of the population is under 15 years old,
22.3% is between 25 and 44 and 2.9% are 65 years and older.
The population growth rate is 1.8% (UNDP estimate for 2005-
2015). The time zone is 2 hours ahead of Greenwich
meantime. Portuguese is the official language. It is spoken by
39.6% of the population. Mozambique is a former Portuguese
colony that declared its independence on June 25, 1975.


Political Environment - Government & Civil Liberties                                        Trend

 Since the end of a civil war in 1992, Mozambique has been ruled by FRELIMO.
 Relatively free and fair elections have been held. Although the constitution provides
 for freedom of the press, the government controls or heavily influence most of he
 major media outlets. There is no restriction on using the internet but access is limited
 by high costs and an inadequate technology infrastructure. The judiciary is
 undermined by corruption and a shortage of trained personnel.
Economic Overview                                                                           Trend
 Although still inadequate, much effort has gone into upgrading and modernizing the         Positive
 infrastructure, including upgrading the main international airport and improving the
 road, port and railway systems.
 Energy Sector
 There are no indigenous sources of oil but offshore exploration is being undertaken
 by foreign oil companies in the hope of discovering reserves. Hydropower is the main       Stable
 source of electricity. There are large reserves of coal and natural gas that are being
 developed with most of the output targeted for export. The electricity supply is
 inadequate and there are frequent interruptions in service.
 External Accounts
 Mozambique runs a very large trade deficit because it has a small manufacturing
 base and needs to import much of its food requirement and all of its oil needs. In
 addition, there are large imports of capital equipment associated with the mega-           Stable
 projects. The tourist sector has grown in importance and is a major source of
 earnings that help to offset the trade deficit. The current account deficit in 2008 was
 8.4% of GDP.
 External Debt
 Mozambique has reached the completion point under the terms of the IMF and World
 Bank Heavily Indebted Poor Countries Initiative (HIPC). As a result, it has received       Positive
 substantial debt relief. The IMF has characterized the risk of external debt distress as
 being “low.”
 Agriculture Sector
 Much of farming is subsistence in nature. Productivity is very low because of a lack       Negative
 of access to credit and low use of inputs such as fertilizers. There is a small
 commercial farming sector that produces much of the cash crops that are exported
 such as cashew nuts, tea and cotton. Mozambique is a net food importer.
 Informal Economy
 Heavy handed regulations and corruption are a key reason for the large informal
 economy. Much of commerce, including peddlers and sellers of goods at market               Stable
 stalls, operate in the informal economy.

Business Environment                                                                        Trend

 Openness to Foreign Investment
 The government encourages foreign investment to spur growth. There are however a
 number of obstacles to investing including an inadequate infrastructure, a lack of         Stable
 skilled labor and a low electrification rate. Transparency is a major problem and the
 regulatory environment is opaque. Most of the foreign investment is in the energy
 sector (coal, natural gas and offshore oil drilling).

  Financial Sector
  There is a small and shallow banking system that is dominated by Portuguese and
  South African financial firms. There is also a small stock market where a handful of
  issues trade in relatively illiquid conditions. The financial system is clearly inadequate
  to the task of channeling capital to its most productive uses.

  Mozambique’s ranking in Transparency International’s Corruption Perception Index
  dropped to 126 in the 2008 survey from 111 in the previous year’s survey. Corruption
  is a major problem that restrains economic growth. The 2009 US State Department
  Human Rights Report for Mozambique noted that “officials often engaged in corrupt              Negative
  practices with impunity.”

 Human Capital                                                                                   Trend

  Mozambique’s ranking of 175 of 179 nations and territories in the 2007/2008 UNDP
  Human Development Index highlights the widespread existence of poverty and the
  very low living standards. The per capita income in 2008 was just $465 and the life            Negative
  expectancy is only 41.2 years. The low life expectancy reflects a very high HIV/AIDs
  infection rate. The literacy rate is only 44.4% of the adult population (fifteen and over).

 Economic Outlook                                                                                Trend

  After growing strongly for several years, economic activity will moderate in response
  to the global economic downturn. Foreign direct investment inflows will slow, tax
  revenues will be below expectations, exports will decline, thus suggesting an increase
  in the large current account deficit, and unemployment will remain high.

I. Political Environment

 Index                                                    Rank                    Score
                                                                                  Political Rights: 3.0/7.0
 Freedom House Index 2009                                 Status: Partly Free
                                                                                  Civil Rights: 3.0/7.0
 Bertelsmann Transformation Index 2008                    67/125                  5.56/10.00
 Fund for Peace - Failed State Index 2008                 85/177                  76.8/120.0
 World Bank Gov Indicator 2008, Political Stability       49.5 percentile         0.10

1. Government

The chief of state is President Armando Guebuza. He has held the office since February 2, 2005. The
head of the government is Prime Minister Luisa Diogo. He has been in office since February 17, 2004.
The president is elected to a 5-year term by popular vote and is eligible for re-election. Suffrage is 18
years. In the last election that was held on December 1 and 2, 2004, President Guebuza received 63.7%
of the vote. The next election will be conducted in December 2009. The President selects the Prime

There is a unicameral Assembly of the Republic that has 250 seats. Members are elected directly by
popular vote to a 5-year term. The elections coincide with those of the Presidential vote. The Front for
the Liberation of Mozambique (FRELIMO), which is the party of President Guebuza, has 160 seats and
the Mozambique National Resistance Party has 90 seats.
Voter turnout was just 36% in the December 2004 elections. According to Freedom House, “Independent
monitors cited an array of serious flaws in the voting process, but agreed that none of the irregularities
would have significantly altered the results.”

The Assembly in 2006 approved an amendment to the election law that abolished the mandate for a party
to receive at least 5% of the national vote to gain representation in parliament. This reform could allow
smaller parties to increase their role in politics. Only FRELIMO and the National Resistance Party have
exceeded the 5% threshold.

2. Civil Liberties

Freedom House has designated Mozambique as “partly free” and has assigned it a rating of 3 out of 7 for
political rights and 3 out of 7 for civil rights. The lower the rating the higher the degree of political and civil
liberties. Mozambique is ranked 67 of 125 nations in the Bertelsmann Transformation Index, 85 of 177 in
the Fund for Peace Failed State Index (the lower the ranking, the higher the degree of political and
economic dysfunction) and is ranked at the 49.5 percentile in the World Bank’s Political Stability
governance indicator.

The constitution provides for freedom of the press. The government however controls virtually all the
broadcast media and owns or “influences” the print media. Libel is a criminal offense and as a result,
many journalists practice self-censorship. Journalists are occasionally threatened, harassed, or detained
for attempting to cover “sensitive” stories or for criticizing government policies. The government does not
restrict or limit the use of the internet. However, because of the low level of electrification and high
connecting costs, internet use is very low. Freedom House ranks Mozambique 86 of 195 in its Freedom
of the Press survey for 2009 and characterizes the press as "partly free.”

The government respects freedom of religion and academic freedom. Freedom of assembly is restricted
by notification restrictions. Nongovernmental organizations (NGOs) operate openly but must register with
the government. Workers can form and join trade unions and strike. Of the 500,000 workers in the formal
sector, 98,000 are unionized. In November 2008, the Parliament approved a law that allows government
employees to form unions and strike. Collective bargaining is allowed. The US State Department
Investment Climate Statement noted that labor unions “lack the financial and institutional capacity to be
very effective.”

The judicial system is heavily influenced by the government. A survey released in 2007 by Global
Integrity found corruption to be “endemic” in the judicial system, with a large proportion of judges
accepting bribes to fix cases. A study conducted by the president of the Supreme Court meanwhile
indicated there was a “dire shortage” of qualified judges. There are lengthy delays in court proceedings.
Trials are held in Portuguese which many citizens do not speak. Human rights abuses by security forces,
including extrajudicial killings, torture, and arbitrary detention are serious problems.

II. Economic Overview

Agriculture and fishing accounted for 27.4% of GDP in 2007, manufacturing 14.5%, retail and wholesale
trade was 13.2% and finance and business services had an 11.1% share. Agriculture employs 81% of the
workforce, services 13% and industry 6%. There are no reliable up to date statistics on unemployment. It
is believed to be around 20%. Many college graduates struggle to find suitable jobs. Wage rates are very
low. On April 28, the government hiked the minimum wage by between 5% and 42%. In the agricultural
sector, the new minimum wage is $49 to $56 a month; for miners, it is 68.00-$82.71; for workers in
manufacturing, it is $72.25-$86.47; for construction, it is $71.77-$79.51; and for the financial services
industry, it is $73.00-$103.20. Only 16.4% of workers are in salaried positions.

The crops grown are cotton, cashew nuts, sugarcane, oranges, tangerines, grapefruits, bananas,
pineapples, avocados, tea, tapioca, corn, coconuts and potatoes. Coal, titanium, natural gas, hydropower,
tantalum and graphite are the major natural resources. Food processing, beverages, aluminum, textiles,
cement, glass and tobacco are the principle industries.

Consumer prices in Maputo City fell 0.3% in April 2009, and were 4.4% above their year ago level.

The economy grew at an annual rate of 7.6% from 1999 and 2008. This compares to increases of 3.9%
for South Africa, 4.1% for Malawi and 6.5% for Tanzania. According to the IMF, the per capita income in
2008 was $465. This was 76.3% above the level of 1999 and it placed Mozambique 161 of 179 countries
and territories that the IMF compiles per capita data for.

1. Infrastructure

There are 30,400 km (18,878 miles) of roads of which just 18.7% are paved. In its January 29, 2009
travel advisory, the State Department noted that “The road network connecting provincial capitals is in fair
condition, but can be riddled with potholes and other obstacles. The EN4 toll road between Maputo and
South Africa is well-maintained…Travel outside Maputo often requires a four-wheel drive vehicle.”

Unexploded land mines from the civil war that ravaged the country between 1977 and 1992 makes travel
dangerous on some of the rural and less traveled roads. Night travel is hazardous because of a high
crime rate, banditry and incidents of car-jackings. Check points are common throughout the country.
Police have been known to request bribes to facilitate passage at checkpoints. Many roads become
impassable in the rainy season.

In 2007, the World Bank lent Mozambique $100 mln to upgrade its road network. Under the Road Sector
Strategic Plan for 2007-11, the National Roads Administration expects to improve or redevelop 5,590km
of roads. Much of the funding will come from donor countries.

There are 111 airports of which 23 are paved. The main International Airport is Maputo International
Airport, which is located 3 km northwest of the capital. LAM Mozambique is the national carrier. It was
established in 1936, is 80% owned by the government and 20% by its employees and has 7 airliners.
The airlines that service the Maputo International airport include Air Zimbabwe, Kenya Airways, South
African Airways and TAP. There are scheduled flights to Cape Town, Dar es Salaam, Durban, Harare,
Johannesburg, Lisbon and Nairobi. The airport is being upgraded and modernized. Work is expected to
be finished by June 2010. The first phase of the project, which involved building a new cargo terminal,
has been completed. Construction has begun on a new international passenger terminal, increasing the
capacity of the existing terminal (it will be used exclusively for domestic flights) and creating a duty free
shopping area. In addition, there will be a new control tower, a car park, and a VIP presidential pavilion.
The cost of the second phase is estimated at $75 million. Anhui Foreign Economic Construction
Corporation of China is doing the work. The new international passenger terminal will have a capacity to
service 900,000 passengers a year. Presently, the airport services 600,000 passengers a year. There is
also an airport at Beira, the second largest city. It has flights to Johannesburg, Dar Es Salam, Maputo,
and Nairobi. The Mozambique Airports Authority, a state entity, manages the airports.

Mozambique Ports and Railways Company (MPRC) is a government entity that overseas the 3,123 km
railway system and several of the ports. There are rail links to Malawi, Zimbabwe and South Africa. The
government has placed a high priority on upgrading the rail network. In 2007 for instance, 45 diesel
locomotives, and 1,000 wagons were refurbished in South Africa at a cost of $31 mln and in 2008,
improvements were made in the rail service in an around Maputo.

On August 14, 2007, the government indicated that it would have to spend $375 mln instead of the
originally anticipated $175 mln on a rail project to transport coal from the Moatize coal field to the port of
Beira on the 680 km Sena railway line, which was destroyed during the civil war. Work is expected to be
concluded in late 2009 or early 2010. On April 30, 2009, the European Investment Bank (EIB) announced
that it will lend Mozambique €42 million to help rehabilitate the line. The money will be used for track
improvements and to construct and maintain essential operational buildings and radio
telecommunications systems. The improvements will allow a minimal operating speed of 60 km per hour
along the entire length of the train line.

On April 14, 2003, the government awarded management of the port of Maputo to the Maputo Port
Development Company (MPDC). The company is 51% owned by Portus Indico of Portugal, which in turn

is 97% owned by the Grindrod Group of South Africa and Dubai Ports (each company has a 48.5%
interest). MPDC was given a 15 year concession with an option for a further 10 years. It was granted the
right to finance, rehabilitate, operate and develop the ports and is responsible for marine operations,
towage, stevedoring, terminal and warehousing operations as well as port planning and development. A 3
year $70m rehabilitation program to upgrade and modernize the infrastructure of the port was completed
in 2006. It involved increasing the depth of the approach channels, rebuilding internal roads and railways
and purchasing new handling equipment. Work is underway to upgrade the rail line to South Africa that
will allow increased use of the port by South African companies.

On April 30, 2009, the EIB announced that it will lend Mozambique €23 million to rehabilitate the port of
Beira. The money will be used to deepen and widen the access channel, to dispose of dredged materials
and rehabilitate marine service vessels. On May 8, 2009, the government authorized the MPRC to begin
work on the construction of a new deep water port to handle at least 50 million tons of cargo a year. The
$550 mln project will be developed in conjunction with British based Porto de Dobela and is expected to
be completed in 2 years. The port will be located on the coast of the southern province of Maputo and
will be used to distribute fuel from the 350,000 barrel per day oil refinery that will be built in the same
location and to export coal to Botswana and South Africa.

There are 918 km of gas pipelines and 278 km of refined product pipelines. On April 13, 2007, the
National Energy Regulator of South Africa issued a license to Petroline to build a 500 km $600 mln liquid
petroleum pipeline between Maputo and Kendal in South Africa. Construction began at the end of 2008
and is expected to be completed by the end of 2009. The pipeline will carry 3.5-billion liters of fuel a year.
Petoline is 50% owned by Woesa Consortium (South Africa), 20% by Gigajoule International (South
Africa) and by Petroleos de Mocambique (Petromoc) and Companhia de Desenvolvimento de Petroleo de
Mocambique, which each own a 15% stake.

The main source of water is surface water. Groundwater however is used in a number of urban centers
for drinking water. Hand pumping and shallow wells are used throughout the country as the main source
of drinking water in rural areas. The main consumer of water is the agriculture sector which accounts for
87% of the total. On September 22, 2008, the government outlined plans to expand the water supply for
Maputo and the neighboring city of Matola. The project will cost about $140 mln and will largely be
financed by the EIB, the government of the Netherlands, the EU and the French Development Agency.
The Mozambican government will contribute 13% of the total cost. On March 9, 2009, The USAID and
Coca-Cola formed an alliance to provide clean, potable water to Chimoio, the sixth largest city. Currently,
only 10-15% of Chimoio's 250,000 residents are served by an inconsistent and inadequate water supply
that poses serious public health risks and hampers industrial and commercial growth. The cost of the
project is $1.79 mln of which USAID will contribute $500,000. China is funding the construction of the
Moamba-Major dam that will provide Maputo with drinking water at a cost of $300mln.

2. Energy Sector

Mozambique does not produce any oil. It consumes and imports 16,000 barrels per day (bpd), the bulk of
which is in the form of diesel. There is the possibility of significant offshore and onshore oil potential.
Anardarko (US) told President Armando Geubuza during his visit to Houston in September 2007 that
there were “promising indications of large reserves” in the Rovuma Basin along the border with Tanzania.
The company said it is “almost certain that oil is there." Anardarko has conducted exploratory drilling but
has yet to discover exploitable reserves. Among the other oil companies that are involved in exploring for
oil are Sasol (South Africa) and Petronas (Malaysia), which formed a partnership with Empresas Nacional
De Hidrocarbonetos De Mozambique (ENH) on November 3, 2008, ROC (Australia), Artumas (Canada),
ENI (Italy), Norsk Hydro (Norway) and Petrobras (Brazil).

At present there is no oil refinery and as a result, all refined products must be imported. On April 3, 2008,
the government approved the construction of a 350,000 bpd oil refinery in southern Maputo province.
The project, including an off-shore terminal that will receive oil tankers, water and waste treatment
stations, new roads, and a variety of social and economic infrastructure programs, will cost $8 bln.
Construction will begin in either late 2009 or early 2010 and it is targeted for completion in 2014. About
one-third of the output will be used domestically and the remainder will be exported. There are questions
however about the viability of the project given the global recession and the huge sums that have to be
borrowed to complete the project. Another oil refinery is being built in the north of country by a consortium
whose largest owner is Ayr Logistics (US). It will have a capacity of 300,000 bpd and will cost an
estimated $4.5 bln.

Hydropower is the dominant source of electricity, accounting for 99.7% of the total. It however provides
only 11% of the total energy requirement while biomass (wood, charcoal and animal waste) accounts for
85% and oil 5%. There is 14,000 MW of exploitable hydro power of which 2,300 MW has been
developed. The largest hydro facility is the Cahora Basin Dam (second largest dam in Africa after the
Aswan dam in Egypt) on the Zambezi river. It produces 2,075 MW of power. Only 5% of the electric
production is used domestically. The remainder is exported to South Africa and Zimbabwe. The
government plans to build additional hydro-plants. On May 8, 2006, it signed a memorandum of
understanding with The Export-Import Bank of China to finance construction of the 1,350 MW Mphanda
Nkuwa dam on the Zambezi river. The total $2.3bn loan package includes funding for a transmission line
from the dam site in Tete province to Maputo.

The electrification rate is just 6%. Most of the population in rural areas is not hooked up to the electrical
grid. In rural districts, kerosene is the main fuel for lighting. There are small scale projects in rural districts
to provide electricity via solar panels and the government has also promoted wind energy projects for
water pumping. The major electric supplier is Electricidade de Mocambique (EDM), which is a state entity.
It also maintains the national grid system. The electric supply is not consistent and there are blackouts.

Mozambique has large reserves of coal. On May 18, 2009, Riverdale Mining (Australia) indicated that it
has plans to mine 20 million tons of coal in central Mozambique in 2010 and will invest $800 in mining
operations. Total coal reserves are estimated to be about 3 billion tons. Besides Riverdale, CVRD
(Brazil) also has operations in the coal sector.

There are exploitable reserves of natural gas that might be as high as 3 trillion cubic feet. Natural gas is
exported to South Africa via a pipeline. Sasol is the main foreign investor in the natural gas sector.

Mozambique has great biodisel potential. In August 2007, Energem (Canada) announced that it had
acquired a 70% stake in a jatropha biodiesel venture. ESV Group (Netherlands), ENI and Petrobras also
are involved in biodiesel projects. The biggest such project involves the African Mining and Exploration
Company (UK). On October 23, 2007, it signed a $510 mln contract with the government to establish an
energy plantation. The project involves growing sugarcane on a 30,000 ha plantation that will ultimately
be used to produce 320 mln liters of ethanol a year. Construction of the factory will begin in 2010 and it is
expected to become operational in 2012. There are doubts however about the viability of the project
given the recent sharp decline in ethanol prices. Izac Holtshausen, the chief executive of the operations,
indicated that when ethanol prices are low, the company will switch to producing sugar for the European
market instead of making ethanol. There are also concerns about the tremendous amount of water that
the project will consume.

3. External Accounts

Mozambique runs a large trade deficit because of its small manufacturing base, its need to import all of its
oil requirement and the large amount of capital equipment that must be imported for its infrastructure and
mining projects. In 2008, the IMF estimated the trade deficit rose 65% to $1.122 bln as a 17.5% gain in
imports outpaced a 4.1% advance in exports. The shortfall was equal to 11.5% of GDP. Aluminum was
the dominant export in 2007, accounting for 62.9% of the total followed by food, fish, live animals,
beverages and tobacco with a 9.7% share and electricity was 9.3%. With respect to imports, food, fish,
live animals, beverages, tobacco and animal and vegetable fats and oils were 17.7%. In second place
was petroleum and petroleum products at 12% and road vehicles were third at 9.3%. For 2006, the
Netherlands was the largest export market at 59.7% while South Africa was second at 14.1% and
Zimbabwe had a 3.2% share. In 2007, South Africa was the largest source of imports at 31.8% followed
by the Netherlands at 14.7% and India was third with 4.3%.

Remittances are not a significant source of transfer payments in the balance of payments. According the
WB, they totaled $99 mln in 2007 and were equal to just 1.3% of GDP. Tourism has grown in importance
in recent years. On April 16, 2009, Tourism Minister Fernando Sumbana indicated that hotel capacity had

been increasing at a 12% annual rate. Tourist receipts rose from $129 mln in 2005 to $185 mln in 2008
and the number of tourists climbed from 711,000 in 2004 to over 1.5 million in 2008. The government is
hoping that the tourist sector will receive a boost from the “spillover” impact of South Africa hosting the
soccer World Cup in June 2010. The IMF estimated the current account deficit (including foreign grants)
was $821 mln in 2008. This was up from $495 mln in 2007 and was equivalent to 8.4% of GDP. The
shortfall was largely financed by FDI and borrowings from the IMF.

The IMF placed gross international reserves at $1.641 billion at the end of 2008. This was equivalent to
4.6 months of the imports of goods and non factor services income (non factor income excludes earnings
from remittances and income earned from income from investments, interest payments and dividends).

4. HIPC External Debt, Foreign Aid and Budget Balance

In September 2001, Mozambique reached the completion point under the terms of the WB and IMF
Heavily Indebted Poor Countries Initiative (HIPC), thus making it eligible to receive “irrevocable” debt
relief. The total estimated debt-service relief received by Mozambique was $4.3 billion.

To be considered for HIPC assistance, a country must face “an unsustainable debt burden” which is
defined as having an external debt that is more than 150 percent of the exports of goods and services or
more than 250 percent of fiscal revenue, “establish a track record of reform and sound policies through
IMF and IDA (International Development Agency) supported programs” and have developed a Poverty
Reduction Strategy Paper (PRSP). If these criteria are achieved, a country has been deemed to reach
the “decision” point and is therefore eligible for interim debt relief. In order to reach the completion point
and receive “full and irrevocable” debt reduction, a country must “establish a further track record of good
performance under IMF and IDA supported programs, implement satisfactorily key reforms agreed at the
decision point and adopt and implement the PRSP for at least one year.”

According to the Bank of Mozambique (BA), the external debt at the end of 2008 was $3,521.3 mln of
which 51.5% was owed to multilateral agencies and the remainder was bilateral debt. The external debt
was equal to 36% of GDP. In its Article IV Consultation Report of February 10, 2009, the IMF indicated
that the risk of external debt distress “remains low.”

The budget is very dependent on foreign aid. In 2008, the IMF estimated that foreign grants were 12% of
GDP and accounted for 31.5% of total spending (including capital projects). The budget deficit was 4.5%
of GDP. However, excluding external grants, it was 16.5% of GDP. On December 20, 2008, Finance
Minister Manuel Chang indicated that the budget for 2009 faced a deficit of $2.33 bln that will have to be
made up by foreign grants and loans. This represents 53% of the budget.

On May 28, 2009, 19 donor nations and funding agencies, known as the Program Aid Partners (PAP),
which consists of the WB, the AfDB, the European Commission, 13 individual European countries,
Canada, Norway and Switzerland pledged $471.8 mln of direct aid for the 2010 budget. The group also
pledged $332.7 mln for health and social programs, thus bringing the total aid to $804.5 mln. The US
separately pledged $373 mln in assistance.

5. Agriculture Sector

Agriculture is the largest sector of the economy and the largest source of employment. Much of the
farming is subsistence in nature. Productivity is limited by poor access to credit, the small size of most
farms, low use of fertilizers, poor roads, a lack of marketing infrastructure, inadequate storage facilities
and the low level of mechanization and electrification. Peasant farmers cultivate 92% of the cropland and
produce most of the corn, cassava, rice and beans. They rely on rainfall as they cannot afford to install
irrigation systems. The average size of peasant plots is just 1.8 ha. The remaining cropland is cultivated
by large commercial farms that produce much of the food that is exported. Among the major exports are
tea, cashew nuts, cotton and sugar. Mozambique is a net food importer. In 2007, vegetables and fruits
accounted for 4.8% of total imports, rice 3.8%, wheat 1.8% and diary products 1.6%.

6. Informal Economy

Mozambique has a large informal economy. The WB estimates it is equal to 40.3% of GDP. This places
Mozambique 28 of 104 nations that the WB compiles data on the informal economy. Most of the street
sellers and peddlers are part of the informal economy. A September 2007 paper entitled “Legal
Mechanisms for the Empowerment of Informal Business in the Republic of Mozambique" by Adelaide
Anchia Amurane, listed “weak capacity of the formal labor market to absorb all working age and
economically active people", judicial and financial requirements that are often beyond the real capacity of
people starting a business (business licensing, tax levels and minimum capital requirements for
registration) and lack of capital as the major reasons for the large underground economy.

III. Business Environment

 Index                                                                       Rank               Score
 Economic Freedom of the World Index 2008                                    116/141            5.8/10.0
 Heritage Foundation Economic Freedom Index 2009                             113/179            55.7/100.0
 World Economic Forum – Global Competitive Index 2008-2009                   130/134            3.15/7.00
 Milken Institute Capital Access Index 2008                                  109/122            2.48/10.00
 UNCTAD – Inward Potential Performance Index 2004-2006                       104/141            0.134/1.000
 World Bank Ease of Doing Business 2009                                      141/181            N/A
 World Bank Gov Indicator 2008, Regulatory Quality                           31.6 percentile     -0.49
 World Bank Gov Indicators 2008, Rule of Law                                 29.0 percentile    -0.68
 Transparency International Corruption Perception Index 2008                 126/180            2.6/10.0

1. Summary of Indices

Mozambique ranks 141 of 181 in the WB’s 2009 ease of doing business survey. This compares to a
                                                                 th                             st
ranking of 139 of 179 in the 2008 survey. It is ranked 144 in starting a business, 161 for employing
               rd                    th                             th                             th
workers, 123 in getting credit, 124 in enforcing contracts, 149 in registering property, 38 in protecting
investors and 133 in closing a business. With respect to the WB’s governance indicators, it performs
poorly. It is ranked at the 31.6 percentile for regulatory quality and is at the 29.0 percentile for rule of law.

Mozambique is ranked 104 of 141 in the UNCTAD Inward Potential Performance Index for 2004-2006,
130 of 134 in the World Economic Forum’s (WEF) 2008-2009 Competitiveness Index, 113 of 179 in the
Heritage Foundation’s Economic Freedom Index, 116 of 141 in the Fraser Institute's Freedom of the
World Index and 109 of 122 in the Milken Institute Capital Access Index.

2. Openness to Foreign Investment

The government encourages foreign investment to spur growth. There are no legal distinctions made
between domestic and foreign investors, foreign investors can participate in the privatization process and
there are no limitations on the percentage of ownership for foreign investors. Investment registration and
repatriation procedures must be followed for the repayment of foreign loans and the repatriation of
invested capital, profits and dividends. However, these processing procedures are not particularly
onerous. Nationalization can only occur in cases deemed “absolutely necessary for national interest or
public health and order.” The owners of nationalized property are entitled to “just and equitable
compensation." There have been no instances of nationalization since the adoption of the 1990

The government must approve all foreign and domestic investments that require incentives. There is a
minimum investment threshold of $50,000 for eligibility for tax and import incentives. Among the
investment incentives that are offered are a 50% reduction for up to 10 years in the corporate tax rate for
new investments, an 80% reduction in the corporate tax rate for investments in the provinces of Niassa,
Cabo Delgado, and Tete, customs exemptions for the importation of capital equipment and raw materials
and special government grants are extended to companies operating in designated Rapid Development

According to State Department’s Investment Climate Statement, transparency is a major problem and the
regulatory environment is “opaque.” It said, “Investors face a myriad of requirements for permits,
approvals and clearances, all of which take a significant amount of time and effort to obtain. The difficulty
of navigating the system creates space for corruption, and bribes are often requested to facilitate
transactions. Regulations in the areas of labor, health and safety and the environment are routinely not
enforced, or are enforced randomly to generate revenue from fines. In addition, civil servants have at
times threatened to enforce antiquated regulations that remain on the books to obtain favors or bribes.”
The process of obtaining a visa and related work permits for expatriates is lengthy and bureaucratic.
Foreign workers can only be hired if there are no qualified domestic workers.

The top corporate tax rate is 32%. The top income tax rate is also 32%. It applies on income over
1,512,000 meticals ($5,665). A tax rate of 10% applies for income from agriculture and cattle breeding.
Dividends are taxed as normal income. There is a 20% withholding tax for dividends. Profits from the
sale of a house are taxed as normal income. Capital gains are taxed as ordinary income. The value
added tax is 17%. Employers are obligated to pay a social security tax assessed at 7% of the employees'
wages. A maximum of 3% of this is deductible from the employee's salary, while the remaining 4% is met
by the employer.

The US State Department’s Investment Climate Statement notes that “the judicial system has been
largely ineffective in resolving commercial disputes. Instead most disputes are either settled privately or
not at all.” Foreign investors can ask for arbitration to resolve commercial disputes and a Center for
Commercial Arbitration, Conciliation and Mediation (CACM), which is supported by USAID, has been

Private ownership of land is not allowed. Instead all property is owned by the state. The government
grants land-use concessions for periods of up to 50 years, with options for renewal. Land use
concessions however cannot be used as collateral. Instead, banks use property other than land, such as
cars and private houses, as collateral.

3. Foreign Investment

Data from the UNCTAD indicate that FDI in 2007 was $427 million. This was above the $164 million
level in 2006 and represented 22.6% of gross fixed capital formation. The total stock of FDI (book value)
at the end of 2007 was $3.216 billion, which was equal to 42.6% of GDP.

Foreign investment has soared in recent years as the government has initiated several mega- projects
such as building a natural gas pipeline to South Africa, constructing an aluminum smelter at Mozal,
building more hydro-electric facilities, upgrading the Maputo airport and improving the railway network.
According to UNCTAD data, total foreign investment between 2000 and 2007 surged 157.5% to $3.216
bln. Among the US companies with investments are Seaboard Corporation, which purchased a flour mill
in Beira through the privatization process, Chiquita Banana is involved in a project to export bananas,
Universal Leaf has invested in a tobacco processing facility, American Metals and Coal International has
a 5% holding in a the coal concession in Moatize that is 95% owned by the CRVD of Brazil, Deloitte and
Touche and Price Waterhouse have consulting operations, Fedex is involved in package delivery, Holiday
Inn has a hotel, Hertz has car rental agencies and Goodyear and Colgate Palmolive are also

Among the other major companies in Mozambique are the South African Bottling Company, which is
partly owned by Coca-Cola; an Indian consortium consisting of Rail India Technical and Economic
Services and Indian Railway Construction International took a 51% interest in the Beira rail line on
January 1, 2005; Kenmare Resources (Ireland) is developing the Moma Titanium Mine and has acquired

a uranium exploration license; African Queens Mines Ltd (Canada) is exploring for gold; BP has interests
in retail gasoline; Rio Tinto (Australia) is involved in a mineral sands project; and MOFID (China) has
interests in the timber sector.

4. Privatization

Private property and most of the economy was nationalized in 1975 following independence from
Portugal. After the abandonment of socialist economic principles in the early 90s, the government began
to privatize state holdings. Most of the large state companies were bought by foreign interests. The three
cement factories for instance are now owned by the Portuguese cement company, CIMPOR, the only
glassware factory is in the hands of Barboso e Almeida (Portugal) and two of the three breweries were
sold to South African Breweries (SAB).

Most of the remaining state-owned industries are public utilities and energy companies such as
Electricidade de Mocambique, TDM Mozambican, the telecommunications company, and the oil
companies Petromoc and National Hydrocarbon Company (ENH). While the government has indicated
its intention to sell these assets, the privatization process has effectively stalled.

According to WB data, privatization receipts were $153 mln between 2000 and 2007. There have been
no significant privatizations since 2003.

5. Financial Sector

Mozambique has a shallow and undeveloped financial system. Access to credit for the private sector is
difficult to obtain and expensive. There are 9 commercial banks; Banco Internacional de Moçambique,
Banco Austral (owned by ABSA of South Africa), Standard Bank (South Africa), Banco Comercial e de
Investimentos (Portuguese bank, Caixa Geral de Depositos (CGD) has a 51% interest and Portuguese
financial institution BPI has a 30% stake), Banco Internacional de Comércio, União Comercial de Bancos,
African Banking Corporation, Banco de Desenvolvimento e Comércio and Banco Mercantil e de
Investimento. There is also 1 investment bank, 3 microfinace banks, 5 credit unions, 3 leasing
companies, 20 foreign exchange houses and 20 microfinance entities The BA placed the level of non-
performing loans at 2.6% of total loans at the end of 2007, down from 3.3% percent at the end of 2006.

There is a small stock exchange that was founded in October 1999. On May 13, 2008, the government
announced the sale of 10% of the shares in the publicly-owned Mozambican Hydrocarbon Company
(CMH). Only citizens and local companies were allowed to purchase shares. CMH was established in
October 2006 to explore for and process natural gas. It is a partner with Sasol (South Africa) in the
Inhambane gas fields. Before the floatation, the company was 80% owned by state owned ENH, and
20% by the government. The shares sold were part of the holdings of ENH. The value of the offering was
around $6.7 million.

The BA holds auctions for Treasury Bills with maturities of 91, 182 and 364 days every 2 weeks. At the
auction on June 10, the yield was 10.84% for 91 days, 11.60% for 182 days and 12.15% for 364 days.

The yield for the 3-month Maputo interbank borrowing rate was 18.63 % on June 17, 2009.

The metical operates under a floating exchange rate regime. In the year to date period ending June18, it
dropped by 5.7 percent against the dollar.

6. Corruption and Transparency

Mozambique has ratified the UN Convention Against Corruption. It is ranked 126 of 180 nations in
Transparency International’s 2008 Corruption Perceptions Index. This compares to a ranking of 111 of
179 nations in the 2007 survey. While there are laws that provide for criminal penalties for corruption, the
State Department's Human Rights report for Mozambique noted that the “government did not implement
the law effectively, and officials often engaged in corrupt practices with impunity. There are no laws

against conflict of interests for government officials. No corruption cases involving high-profile individuals
have been brought to trial during the Guebuza administration…corruption in the executive and legislative
branches was widely perceived to be endemic…Petty corruption by low-level government officials to
supplement low incomes, and high-level corruption by a small group of politically and economically
connected elites continued to be the norm. Corruption largely resulted from a lack of checks and
balances, minimal accountability, and a culture of impunity…The law requires that all members of the
government declare and deposit their assets with the Constitutional Council, but does not require such

7. Standards Compliance Assessments

 IMF Dissemination Standard                                    Subscription Status
 Special Data Dissemination Standard                           Not a SDDS Subscriber
 General Data Dissemination Standard                           Yes, a GDDS Subscriber

 IMF Assessment                      Standards Assessed            Dates                Compliance Level
 Reports on Standards         and    Anti-Money Laundering         March 4, 2004        Low
 Codes (ROSCs)                       and     Combating      the
                                     Financing of Terrorism
                                     Banking Supervision
                                                                   March 4, 2004        Low
                                     Payments Systems
                                                                   March 4, 2004        Low
                                     Data Dissemination
                                                                   Aug. 10, 2005        Mixed
                                     Fiscal Transparency
                                                                   May 9, 2008          Mixed

 Financial Sector Assessment                                       March 5, 2004        Mixed
 Programs (FSAPs)

The IMF assessed Mozambique for Anti-Money Laundering and Combating the Financing of Terrorism,
Banking Supervision and Payment Systems in its FSAP Report. It noted that the financial system was
small and mostly bank based. “Bank intermediation has been constrained by difficulties in channeling
deposits into loans, reflecting high and volatile real lending rates and a poor lending environment
(including a weak repayment culture).” The report on Data Dissemination indicated that important
weaknesses in the quality of statistics were being addressed but “limitations in the coverage” of most core
indicators still exist. With respect to Fiscal Transparency, the IMF said great progress had been made
with regard to public procurement and civil service policies and introducing anti-corruption legislation but
there were still major problems such as the “ambiguous nature of the regulatory framework governing
state public enterprises and autonomous institutions, overlapping responsibilities between different levels
of government and lack of transparency of intergovernmental transfers.”

IV. Human Capital
 Index                                                         Rank                   Score
 UNDP Human Development Index 2008                             175/179                .366/1.000

1. Social Indicators

Mozambique ranks 175 of the 179 countries and territories in the UNDP Human Development Index in
2008. The infant mortality rate is 96.0 per 1,000 live births, the probability of dying before the age of 40 is
45.0%, 48% of births are attended to by a skilled health care professional, the under five mortality rate is
145 per 1,000 live births, 77% of one-year olds are fully immunized against measles, 15% of infants are
born with low birth weight, the maternal mortality rate is 520 per 100,000 live births, 44% of the population

is considered to be undernourished, 43% of the population have access to clean drinking water, 24% of
children under 5 are underweight for their age, 74.1% of the population lives on less than $2 a day, 32%
of the population have access to improved sanitation facilities, 69.4% of the population lives below the
national poverty line, the probability of dying between the ages of 15 and 60 is 47.7% and the projected
life expectancy for 2009 (according to the US Census Bureau) is just 41.2 years (40.5 years for females
and 41.8 years for males).

Mozambique is listed by the Food and Agriculture Organization (FAO) as one of the 82 "Low Income
Food Deficit Countries.” The International Food Policy Research Institute places Mozambique 72 of 88
countries in its Global Hunger Index.

2. Access to Technology

There are 3 mainline telephone lines and 154 cellular subscribers per 1,000 people. Internet use is 9 per
1,000 people. There are 14 personal computers per 1,000 people, 6% of households have a television,
there are 37.6 radios per 1,000 people and there are 2 motor vehicles per 1,000 people. The per capita
consumption of electricity is 545 kilowatt hours (in the US, it is 14,240 kilowatt hours).

Mozambique is ranked 124 of 134 in the WEF’s 2008-2009 Network Readiness Index.

3. Health Indicators

As of 2004 according to the WHO, there were just 159 dentists, 941 laboratory health care workers, 6,183
nurses and midwives, 618 pharmacists and 514 doctors in the country. The number of hospital beds is
80 per 100,000 people.

The prevalence of AIDS is 16.1% of the adult population (15-49 years old), the prevalence of tuberculosis
is 624 per 100,000 people (in the US, it is 3 per 100,000 people), the prevalence of diabetes is 3.1% of
the population between 20 and 79, the prevalence of obesity is 0.2% for males and 3.0% for females and
the prevalence of smoking is 3.4% for females 15 and older and 22.0% for males 15 and older. The per
capita health expenditure is $47. In 2006, there were 7,432,539 cases of malaria and 19,211 deaths from
malaria. The mortality rate for cancer is 124 per 100,000 people, the mortality rate for cardiovascular
diseases is 371 per 100,000 people and deaths from HIV/AIDs is 707 per 100,000 people. The number
of children who will lose either parent or both to HIV/AIDS is expected to reach 600,000 by 2010.

In a WHO survey of the leading causes of death in 2002, HIV/AIDs accounted for 28 percent of the total
followed by malaria at 9 percent and diarrhea diseases with 8 percent.

The State Department’s January 29, 2009 travel advisory for Mozambique noted that “Medical facilities
are rudimentary, and most medical providers do not speak fluent English. Medicines are not always
consistently available…Outside of Maputo, available medical care ranges from very basic to non-

In the WHO’s ranking of the world’s health care systems, Mozambique is ranked 184 of 190 countries

4. Education Indicators

Tuition-free, compulsory education is provided for children from the ages of 6 to 14. Parents however are
required to pay for school supplies and books. This is a financial burden that many cannot afford. Many
school children drop out of school in order to work. UNICEF has estimated that 31.7% of children 5 to 14
work. Schools are in poor condition. Of students enrolled in Grade 1, 31% graduate primary school. The
pupil/teacher ratio in primary school is 65:1. Secondary school begins at 13 and lasts till 18.

According to the Bertelsmann Country Report for Mozambique, “Secondary schools are still extremely
scarce…Vacancies are illegally sold by teachers and school administration on a large scale. The quality
of education is very low, and the rate of repeaters is more than 20 percent each year…vocational training
is almost absent… Research and development…is almost non-existent.”

The literacy rate is 44.4% for those 15 years and older. The average for sub-Saharan Africa is 62.35%.
The net enrollment rate in primary school is 53% for girls and 61% for boys. This compares to a regional
average of 71% for girls and 76% for boys. The ratio of primary school age children who are not in
primary school is 24%. The net enrollment rate in secondary school is 2% for girls and 3% for boys, which
compares to the regional average of 24% for girls and 29% for boys. The school life expectancy is 8.3
years, which slightly is lower than the regional average of 8.6 years.

V. Economic Data, Outlook and Credit Rating

 IMF Country Data Overview 2008 (Est.)

 GDP           GDP:            GDP     per    CPI:           Current          Budget         FDI
 Growth                        capita:                       Account as       deficit as %   (UNCTAD
                                                             % of GDP         of GDP         2007)

 6.2%          $9.654 bln      $465           10.3%          -12.6%           -4.5%          $427 mln

1. Latest IMF Consultation

An IMF press release for May 13, 2009 that was issued following the conclusion of an Article IV
Consultation mission, noted that the global financial crisis was posing a severe challenge for
Mozambique. “Exports are declining due to sharply lower commodity prices and weaker external
demand. Foreign direct investment…is affected as some international investors scale back or postpone
their investment projects. Foreign borrowing by the private sector is being curtailed by tighter credit
conditions.” The IMF urged the government to adopt a simulative fiscal policy to bolster domestic
demand conditions and indicated there was some scope to relax monetary policy as inflationary pressure
are expected to ease.

2. Economic Outlook

The economy will slow significantly this year as a result of the impact of the global financial crisis. The
IMF is forecasting an expansion of 4.3% for 2009 and 4% for 2010. This is significantly below the 6.2%
rise in 2008. On June 3, 2009, Prime Minister Luisa Diogo noted that the country was suffering from a
reduction in export revenue, lower remittances, a decline in private sector investment and a fall in tourist
numbers. He also indicated that budgetary revenues will be about $158 mln below expectations. Despite
the gloomy economic environment, Diogo projected an overly optimistic growth rate of 6.7% for 2009.

Mozambique’s economy should able to ride out the current global economic crisis and once again
experience rapid economic growth as a result of several mega-projects that are being undertaken to
bolster the infrastructure and develop the country’s coal, natural gas, mineral and hydropower resources.
On June 2 for example, CRVD announced that it will begin construction on a 1,800 MW thermal power
station at its $1.3 billion Moatize coal project in March 2010. The power station will be operational in
December 2012 and will produce 600 MW of electricity. Coal mining at the Moatize site is expected to
start in 2010 with output reaching 11 million tons in a few years, most of which will be exported.

Although the mega-projects will fuel growth, they will actually provide few jobs in an economy where most
of the people live at or near subsistence level. In the long-term, the government must find a way to lift
employment by bolstering the manufacturing and services sectors. In addition, there is a great need to
improve the education system and to increase the inadequate supply of electricity.

3. Country Credit Ratings

 Credit Rating                 Standard & Poor’s      Moody’s        Fitch Ratings

 (as of date of publication)   B+/Stable/B            N/A            B/Stable

Mozambique is rated by Standard and Poor’s and by Fitch but not by Moody’s. S&P has assigned it a
rating of B+/Stable/B. This is the same rating as Cambodia, Cape Verde, Honduras, Papua New Guinea,
Senegal, Suriname and Uganda. Fitch assigns Mozambique a rating of B/Stable. This is the same level
as Benin, Cameroon, Dominican Republic, Suriname and Uganda.

For S&P and Fitch, an investment grade rating is BBB- or above.

VI. Membership in international organizations

 Financial Action Task Force (FATF)                                Not a member

 International Center for Settlements of Investment Disputes       Signatory on April 4, 1985

 International Federation of Accountants (IFAC)                    Not a member

 Multinational Investment Guarantee Agency (MIGA)                  Yes, a member

 United Nations Convention Against Corruption                      Signatory on May 24, 2004

 World Intellectual Property Organization (WIPO)                   Yes, a member

 World Trade Organization (WTO)                                    A member since August 26, 1995

VI. Citations for Mozambique

Central Intelligence Agency, “The World Factbook – Country Report for Mozambique”, “Mozambique – Travel Tips: Weather and Climate”

United Nations Development Program, “2007/2008 Human Development Report for Mozambique”

US Census Bureau, “Population data and age distribution”

Overview of the Economy

US State Department, “Investment Climate Statement for Mozambique” 2009

Carlos Oya “A Wage-Labour Path out of Poverty? Wage Labour Diversity in Rural Africa– School of
Oriental and African Studies” EUI, 18 March 2009

African Economic Outlook, “Report on Mozambique”, “Inflation in Mozambique remains controlled” 11 April 2009, “Mozambique ratifies minimum wage increases” 28 April 2009

Bank of Mozambique, “Inflation rate in Maputo for April”

Central Intelligence Agency, “The World Factbook – Country Report for Mozambique”

IMF, “Republic of Mozambique Selected Issues and Statistical Appendix” 6 September 2005

IMF, “World Economic Outlook Database”, April 2009

UNDP, “2007/2008 Human Development Report for Mozambique”

Infrastructure, “Mozambique – Maputo Airport has new cargo terminal” 26 January 2009, “Mozambique – Maputo Airport upgrade to be completed by June 2010” 15 April 2009

Neil Ford, “New Funding for Mozambique Roads, Rail” All Business, 1 December 2007

Central Intelligence Agency, “The World Factbook – Country Report for Mozambique”

European Investment Bank, “EIB and EU Africa Infrastructure Trust Fund Work Together to Help Rebuild
Beira Transport Corridor in Mozambique” 30 April 2009

Engineering News, “Global Port Operator Invests in Port Maputo” 25 April 2008

Food and Agriculture Organization, “Aquastat – 2005 Report for Mozambique”

Maputo Port Development Company website

Miningmx, “New Mozambique coal, oil port approved” 8 May 2009,%20oil%20port%20approved.htm

                                                                                                     16, “Energem acquires jatropha biodiesel project in Mozambique” 2 August 2007

National energy Regulator of South Africa, “Application for Construction of a Petroleum Pipeline System
Including Storage Facilities by Petroline RSA” 29 March 2007

Railways Africa, “New Mozambique Port Gets Approval” 11 May 2009

Charles Mangwiro, “Mozambique Doubles Investment on Key Railway Line” Reuters, 14 August 2007

Charles Mangwiro, “New Mozambique coal, oil port approved” Reuters, 8 May 2009

African Development Research Group of the World Bank, “Road Network Upgrading and Overland Trade
Expansion in Sub-Saharan Africa” December 2006

Sydney Masinga and Oupa Segalwe, “R4 bln for SA, Mozambique pipeline” South Africa Info, 13 April

Travel Report for Mozambique, “Foreign Affairs and International Department of Canada” 1 June 2009

USAID, “Coca Cola Teams with USAID to Bring Clean Water to Mozambique” 25 February 2009

US State Department, “Travel Advisory for Mozambique” 29 January 2009

World Bank, “The World Bank Continues its Support for Infrastructure Development in Mozambique” 22
May 2007,,conten


Alexander’s Gas and Oil Connection, “Mozambique claims great potential for biofuel expansion” 5 March
2009, “Mozambique: Biofuel Project Wants Mozambican Labor” 28 November 2008, “Mozambique: Oil Exploration Contract with Petronas” 14 October 2008, “Oilmoz Hopes to Have Refinery Operational by 2014” 5 February 2005, “Mozambique: Benga Coal Mining Contract Signed” 15 May 2009

Energy Information Agency – US Department of Energy

Macauhub, “Petrobras begins oil exploration in Mozambique by March 2007” 28 November 2006

Macauhub, “Mozambique: Riverside mining company to mine 20 mln tons of coal per year in Tete
province” 18 May 2009

News@renewables for Africa, “Mozambique: China to fund Nkuwa hydropower dam” 8 May 2006

Oil and, “Artumas and Anadarko sign Mozambique Agreement” 3 May 2007

Reuters, “Anadarko sees potential in Mozambique oil exploration” 1 November 2007

Charles Mangwiro, “Mozambique Signs $8 bln Oil refinery Deal” Reuters, 3 April 2008

Charles Mangwiro, “Anadarko to drill for oil, gas in Mozambique” Reuters, 2 June 2009

Rigzone, “Sasol Teams up with Petronas for Exploration Offshore Mozambique” 3 November 2008

ROC Company website, “Drilling in the Mozambique Channel”

TradeInvest South Africa, “Mozambique invites foreign investors to fund hydropower plants” 23 July 2008

UNDP, “2007/2008 Human Development Report for Mozambique”

World Bank, “World Development Indicators – Sources of Electricity”

External Account, “Mozambique: Tourism a Key Sector in the Economy” 16 April 2009

IMF, “Republic of Mozambique - Third Review Under the Policy Support Instrument” 10 February 2009, “Mozambique Bags $160 mln in tourism revenue”

UNCTAD Trade Data for Mozambique

World Bank, “Migration and Remittances Factbook” 2008

HIPC External Debt, Foreign Aid and Budget Balance

Sam Banda Jr., “Donors pledge $804. 5 mln for Mozambique” Africa News, 30 May 2009

Desmond North, “Half of Mozambique’s 2009 Budget faces a Deficit” Afrik, 20 December 2008, “Mozambique Commitments Given for 2010 Budget Support” 28 May 2009, “AfDB and Partners Pledge to provide Budget to Support to Mozambique” 5 June 2009

Bank of Mozambique – Foreign Debt

IMF, “Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative” March 2009

IMF, “Republic of Mozambique - Third Review Under the Policy Support Instrument” 10 February 2009

Charles Mangwiro, “Aid partners approve $804.5 mln for Mozambique budget” Reuters, 29 May 2008


Food and Agriculture Organization, “Calorie intake”

UNCTAD, “Data for food imports”

Water for Agriculture and Energy in Africa: The Challenge of Climate Change Conference in Sirte, Libya–
“National Investment Brief on Mozambique” 15-17 December 2008

Informal Economy

Stephanie Hanes, “Mozambique’s Informal Street Traders Strive to Survive”, 1 July 2008

Adelaide Anchia Amurane, “Legal Mechanisms for the Empowerment of Informal Business in the
Republic of Mozambique” UNDP, September 2007

Nationmaster, “World Bank Data on Informal Economy”


Central Intelligence Agency, “The World Factbook – Country Report for Mozambique”

Freedom House, “Country Write-up for Mozambique”

Civil Liberties

US State Department, “Human Rights Report for Mozambique” 2008

US State Department, “Investment Climate Statement for Mozambique” 2009

Freedom House, “Country Write-up for Mozambique”

Freedom House, “Freedom in the World 2009: Table of Independent Countries”

Freedom House, “Freedom of the Press – 2009 rankings”

Credit Rating



Standard and Poor’s,1,8,0,0,0,0,0,0,0,4,0,0,0,

Business Environment Table

Bertelsmann Transformation Index

Fraser Institute Economic Freedom of the World Index

Fund for Peace, “Failed State Index”

Heritage Foundation, “Economic Freedom Index”

Milken Institute Capital Access Index

Transparency International, "Corruption Perception Index”

UNCTAD Inward Potential Performance Index

World Bank Ease of Doing Business

World Bank Governance Indicators

World Economic Forum Global Competitiveness Index

Openness to Foreign Investment

US State Department, “Investment Climate Statement for Mozambique” 2009

Heritage Foundation, “Country Report on Mozambique”

KPMG, “International Executive Services – Mozambique Taxation of International Executives” 2008

Foreign Investment

US State Department, “Investment Climate Statement for Mozambique” 2009

Embassy of the United States, “List of US Companies in Mozambique”, “UNCTAD Country FDI Fact Sheet for Mozambique” 10 October 2008

Martin Creamer, “Concrete details on Rio Tinto’s MOZ Mineral sand project”, 14
November 2008


World Bank Privatization Database, “Mozambique plans to launch state mining firm” 3 June 2009

Paul Fauvet, “Privatization: pluses and minuses in Mozambique”

Financial Sector

US State Department, “Investment Climate Statement for Mozambique” 2009, “Mozambique: New Structure for Second Largest Bank” 25 November 2007, “Mozambique: Public Offer of Shares in Hydrocarbon Company” 13 May 2008

Bank of Mozambique -Financial Institutions

Bank of Mozambique – Foreign exchange rates

Bank of Mozambique – Interbank rates

Bank of Mozambique – Treasury Bill rates

IMF, “Republic of Mozambique - Third Review Under the Policy Support Instrument” 10 February 2009

IMF “Letter of Intent, Memorandum of Economic and Financial Policies and Technical Memoriadum of
Understandning to the IMF” 29 October 2008

Corruption and Transparency

US State Department, “Human Rights Report For Mozambique” 2008

Environmental Performance Index for 2008

Global Innovative Index Competitiveness Index

Legatum Prosperity Index

UN Convention Against Corruption

World Economic Forum Enabling Trade Index

Standards and Compliance

IMF list of GDDS nations

IMF list SDDS nations

IMF, “Republic of Mozambique: Financial System Stability Assessment, Including Reports on Observance
of Standards and Codes on the following topics: Banking Supervision, Payment Systems and anti Money
Laundering and Combating the Financing of Terrorism” 5 March 2004

IMF, “Republic of Mozambique: Report on the Observance of Standards and Codes – Data Module” 10
August 2005

IMF, “Republic of Mozambique: Report on Observance of Standards and Codes – Fiscal Transparency” 9
May 2008

World Bank ROSCs

Social Indicators

Food and Agriculture Organization, “List of Low-Income Food Deficit Countries”

International Food Policy Research Institute, “Global Hunger Index – The Challenge of Hunger” 2008

UNDP, “Human Development Report for Mozambique” 2007/2008

US Census Bureau for Life Expectancy

World Health Organization Health Statistics

Technology Access

Nationmaster for radios and motor vehicles

Reuters AlertNet

UNDP, “Human Development Report for Mozambique” 2007/2008

World Bank ICT Tables for Technology Access,,contentMDK:20459133~isCURL:Y~

World Economic Forum Network Readiness Index

Health Indicators

Global Health Facts, “Health Indicators”

US State Department, “Travel Advisory for Mozambique” 29 January 2009

World Bank, “World Development Indicators: Health risk factors and public health challenges” 2006

World Health Organization, “Health Indicators”

World Health Organization, “Mortality Data”

World Health Organization, “Ranking of medical care systems”

Education Indicators

Bertelsmann, “Country Write-up for Mozambique”

Education International, “Barometer of Human and Trade Union Rights in Education Report for

UNESCO Education Database

IMF Data and Article IV Consultation

FDI, “UNCTAD Country FDI Fact Sheet for Mozambique” 10 October 2008

IMF, “World Economic Outlook Database” April 2009

IMF, “IMF Mission calls for Fiscal Stimulus in Mozambique” 13 May 2009

Economic Outlook, “Mozambique Suffering Effects of Credit Crunch” 3 June 2009

Afrol News, “Mozambique forecasts huge losses in tax revenue” 6 May 2009

IMF, “IMF Mission calls for Fiscal Stimulus in Mozambique” 13 May 2009

Charles Mangwiro, “Vale to Build Power Plant in Mozambique” Reuters, 2 June 2009

Credit Rating



Standard and Poor’s,1,8,0,0,0,0,0,0,0,4,0,0,0,


Financial Action Task Force,3417,en_32250379_32236869_1_1_1_1_1,00.html

International Center for Settlements of Investment Disputes

International Federation of Accountants

Multinational Investment Guarantee Agency

United Nations Convention Against Corruption

World Intellectual Property Organization

World Trade Organization