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The Republic of Mozambique, population 19.4 million, is a large country (approximately 800,000 sq. mi. – twice the size of California) located on the eastern coast of southern Africa.  It is bordered by Swaziland, South Africa, Zimbabwe, Zambia, Malawi, Tanzania and the Indian Ocean.  Its capital and largest city, Maputo (pop.1.2 million), is located in the southern tip of the country near South Africa and Swaziland.

Relations between the United States and Mozambique are good and steadily improving. By 1993, U.S. aid to Mozambique was prominent, due in part to significant emergency food assistance in the wake of the 1991-93 southern African drought, but more importantly in support of the peace and reconciliation process. The United States is one of the largest bilateral donors to the country and plays a leading role in donor efforts to assist Mozambique with its ongoing economic and political transitions.

 At the end of the civil war in 1992, Mozambique ranked among the poorest countries in the world. It still ranks among the least developed nations with very low socioeconomic indicators. In the last decade, however, it has experienced a notable economic recovery. With a high foreign debt (originally $5.7 billion at 1998 net present value) and a good track record on economic reform, Mozambique was the first African country to receive debt relief under the initial HIPC (Heavily Indebted Poor Countries) Initiative and by 2005, the International Monetary Fund (IMF) formalized the complete cancellation of all Mozambican IMF debt contracted prior to January 1, 2005.

The resettlement of civil war refugees, political stability and continuing economic reforms have led to a high economic growth rate. Between 1994 and 2004 average annual GDP growth was 8.2%. The Government of the Republic of Mozambique projects similar growth expansion (between 7%-10% a year over the next five years), but future strong expansion requires continued economic reforms, major foreign direct investment, and the resurrection of the agriculture, transportation and tourism sectors. Focusing on economic growth in the agricultural sector is a major challenge for the government. Although more than 80% of the population engages in small-scale agriculture, the sector suffers from inadequate infrastructure, commercial networks and investment. However a majority of Mozambique's arable land is still uncultivated, leaving room for considerable growth.

Economic reform has been extensive. More than 1,200 state-owned enterprises (mostly small) have been privatized. Preparations for privatization and/or sector liberalization are underway for the remaining parastatals, including telecommunications, electricity, ports, and the railroads. The government frequently selects a strategic foreign investor when privatizing a parastatal. Additionally, customs duties have been reduced, and customs management has been streamlined and reformed. In December 1999, the Mozambican Council of Ministers approved the Southern African Development Community (SADC) Trade Protocol.  Implementation of the Protocol began in 2002 and has an overall zero-tariff target set for 2008; however, Mozambique's country-specific zero-tariff goal is currently 2015.

For more information on this or other trade and investment matters in Mozambique, please contact us at:

Matthew Roth, Political-Economic Section Chief, E-mail:RothMP@N0SPAM.state.gov , Rob Doughten, Economic/Commercial Officer, email: DoughtenRF@N0SPAM.state.gov

Ms. Elizabeth Filipe, email: FilipeEC@N0SPAM.state.gov Avenue Kenneth Kaunda 193, Maputo, 783, Tel: +(258) 21 49 27 97, Fax: +(258) 21 49 01 14 http://maputo.usembassy.gov/

Support can also be provided by the U.S. Commercial Service South Africa. Please contact Senior Commercial Officer (SCO) Craig Allen via e-mail at Craig.Allen@N0SPAM.mail.doc.gov or telephone at +27 11 778 4813 for additional ionformation or other opportunities in Southern Africa