A continued decline in global commodity prices, weak growth amongst trading partners and a regional drought have contributed to a reduction in GDP growth from 7.4 to 6.3 percent in 2015. Agricultural production, which employs most of the country’s labor force, remained robust in 2015. GDP growth in 2016 is projected to decelerate further to 5.8 percent, before recovering to over 7 percent in 2017.
Large investment flows from the gas sector 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 and the current account deficit to shrink thereafter. Source World Bank
A large majority of the population work in the informal sector, mainly with self-sufficiency farming or small-scale agriculture. The country has a huge agricultural potential and is rich in natural resources, but it still lacks the tools to capitalize on them.
Mozambique is clearly one of the poorest countries in the world and also the youngest with an average age of 17. Argento is honoured to be part of Mozambique’s new future.
Mozambique 68th most stable in the World. Source Wiki Global Peace Index
Mozambique has enjoyed GDP growth 4-10 percent per year for 10 years
As a reminder the developed world has suffered stagnant growth for 10 years
The political situation in Mozambique has been tense for through 2016 with political opposition Dhlakama refusing to recognize the results of 2014 elections and threatening to seize power by force in the northern half of the country.
In September 2016 in Washington President Nyusi stressed that under democracy conflicts should be resolved peacefully and through dialogue, never through force of arms.
“War is everything that we don't want”, said Nyusi. “We need peace so that we can consolidate as a country of hope, progress and prosperity”.
From a local perspective we have seen no effects from this political tension. Any conflict has tended to be along the north south highways. All our business operations, as well as the port, are located in Northern Mozambique.
We feel neither side has any appetite for the old days. Both are keen for international investment, especially combined with local community development projects.
Initial Peace Agreement Reached
18 Aug 2016 (source)
Maputo (AFP) - Mozambique's government has agreed to a regional power-sharing deal with the main opposition party Renamo, representatives announced Wednesday, the first deal clinched in ongoing peace talks in Maputo. The agreement - a concession by the ruling party -- paves the way for legislation decentralising power in the southern African country.