A recovery in commodity prices is supporting Mozambique’s economic growth as we approach the end of 2017, while a tight monetary policy has caused the currency to appreciate.
Although the nation is running a public debt of 103.2 percent of GDP, the GDP growth forecast is positive, estimated at 5.5 percent in 2017 and rising to 6.8 percent the following year. (IMF estimates)
A large majority of the population work in the informal sector, mainly with self-sufficiency farming or small-scale agriculture. The country has huge agricultural potential and is rich in natural resources, but it has lacked the tools to capitalise on them. This is now changing.
Large inward investment flows to support the gas sector and other megaprojects are expected between 2017 and 2020. These flows will support the widening of the current account deficit and boost growth. Gas exports are expected to ramp up by 2022 leading the current account deficit to shrink thereafter. Source World Bank
President Filipe Nyusi has been in power since 2014 and has announced his intention to stand for re-election in 2019, promising continued efforts for peace with the opposition, a reduction of poverty and measures to boost the economy, while safeguarding the environment. Nyusi launched the 2017/2018 agricultural campaign in October encouraging further increases in production to support economic growth and readying the country for future shortages caused by climate change.
Mozambique 68th most stable in the World. Source Wiki Global Peace Index
The forestry sector is key to the national economy; with a 40m ha2 forest cover (51 percent of the surface area) it generates $330.3m of annual revenue and employs an estimated 22,000 persons. (World Bank, 2011) Deforestation remains a problem for the region, but the government of Mozambique is committed to reversing this trend and has joined forces with the World Bank, with the support of companies, such as Obtala Limited, to implement measures that will ensure a sound and sustainable forestry sector.
To this end, The Ministry of Land, Environment and Rural Development (MITADER) was established to focus and facilitate the changes called for through a National Sustainable Development Program.
The program is far-reaching, including calls for participatory audit of all forest concessions, the suspension of new requests for exploration areas and a ban on log exports, as well as ‘Project Foresta em Pé’ which aims to promote sustainable integrated rural development through sustainable forest management. Further powers are afforded MITADER, through a new, independent forest-law enforcement agency, AQUA, and focused access to funds through a National Sustainable Development Fund.