Welcome to Mozambique
Mozambique’s economy, recovering from a civil war and benefiting from macroeconomic reforms and large foreign investment projects, grew an average of eight percent per year during 1994-2008 – the best growth record for any non-petroleum economy in sub-Saharan Africa over this period. Foreign direct investment, exports and revenue collection all increased markedly during this time. The period of mass privatization has ended, although some of the dozen remaining parastatals may still be sold off. The HIPC (Heavily Indebted Poor Countries) and Enhanced HIPC debt relief programs have given the government more breathing room to focus efforts to alleviate poverty, a key policy goal. These efforts received more support in 2005 and 2006, when the IMF, the World Bank and other multilateral institutions forgave 100% of Mozambique’s debt incurred prior to January 1, 2005 under the new Multilateral Debt Relief Initiative (MDRI). Despite predictions of seven to ten percent average real GDP growth rate over the next five years, Mozambique posted a 4.5% growth rate in 2009. The World Bank predicts a slight increase for 2010 at 5.5% average real GDP growth rate.
