Background: Almost five centuries as a Portuguese colony came to a close with independence in 1975. Large-scale emigration economic dependence on South Africa a severe drought and a prolonged civil war hindered the country's development until the mid 1990s. The ruling Front for the Liberation of Mozambique (Frelimo) party formally abandoned Marxism in 1989 and a new constitution the following year provided for multiparty elections and a free market economy. A UN-negotiated peace agreement between Frelimo and rebel Mozambique National Resistance (Renamo) forces ended the fighting in 1992. In December 2004 Mozambique underwent a delicate transition as Joaquim CHISSANO stepped down after 18 years in office. His elected successor Armando Emilio GUEBUZA promised to continue the sound economic policies that have encouraged foreign investment. President GUEBUZA was reelected to a second term in October 2009. However the elections were flawed by voter fraud questionable disqualification of candidates and Frelimo use of government resources during the campaign. As a result Freedom House removed Mozambique from its list of electoral democracies.
Environment Current issues: a long civil war and recurrent drought in the hinterlands have resulted in increased migration of the population to urban and coastal areas with adverse environmental consequences; desertification; pollution of surface and coastal waters; elephant poaching for ivory is a problem
Legislative branch: unicameral Assembly of the Republic or Assembleia da Republica (250 seats; members directly elected by popular vote to serve five-year terms)
Judicial branch: Supreme Court (the court of final appeal; some of its professional judges are appointed by the president and some are elected by the Assembly); other courts include an Administrative Court Constitutional Court customs courts maritime courts courts marshal labor courts
Political parties and leaders: Democratic Movement of Mozambique (Movimento Democratico de Mocambique) or MDM [Daviz SIMANGO]; Front for the Liberation of Mozambique (Frente de Liberatacao de Mocambique) or FRELIMO [Armando Emilio GUEBUZA]; Mozambique National Resistance (Resistencia Nacional Mocambicana) or RENAMO [Afonso DHLAKAMA]
International organization participation: ACP AfDB AU C CD CPLP EITI (compliant country) FAO G-77 IAEA IBRD ICAO ICC (NGOs) ICRM IDA IDB IFAD IFC IFRCS IHO ILO IMF IMO IMSO Interpol IOC IOM IPU ISO (correspondent) ITSO ITU ITUC (NGOs) MIGA NAM OIC OIF (observer) OPCW SADC UN UNCTAD UNESCO UNHCR UNIDO Union Latina UNISFA UNWTO UPU WCO WFTU (NGOs) WHO WIPO WMO WTO
Flag description: three equal horizontal bands of green (top) black and yellow with a red isosceles triangle based on the hoist side; the black band is edged in white; centered in the triangle is a yellow five-pointed star bearing a crossed rifle and hoe in black superimposed on an open white book; green represents the riches of the land white peace black the African continent yellow the country's minerals and red the struggle for independence; the rifle symbolizes defense and vigilance the hoe refers to the country's agriculture the open book stresses the importance of education and the star represents Marxism and internationalism
Economy overview: At independence in 1975 Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987 the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps combined with donor assistance and with political stability since the multi-party elections in 1994 have led to dramatic improvements in the country's growth rate. Fiscal reforms including the introduction of a value-added tax and reform of the customs service have improved the government's revenue collection abilities. Inspite of these gains Mozambique remains dependent upon foreign assistance for more than half of its annual budget and in 2008 54% of the population remained below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force and smallholder agricultural productivity and productivity growth is weak. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter the country's largest foreign investment project to date has increased export earnings. At the end of 2007 and after years of negotiations the government took over Portugal's majority share of the Cahora Bassa Hydroelectricity Company (HCB) a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More electrical power capacity is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives and is now at a manageable level. In July 2007 the Millennium Challenge Corporation (MCC) signed a compact with Mozambique; the compact entered into force in September 2008 and will continue for five years. Compact projects will focus on improving sanitation roads agriculture and the business regulation environment in an effort to spur economic growth in the four northern provinces of the country. Mozambique grew at an average annual rate of 9% in the decade up to 2007 one of Africa's strongest performances. However heavy reliance on aluminum which accounts for about one-third of exports subjects the economy to volatile international prices. The sharp decline in aluminum prices during the global economic crisis lowered GDP growth by several percentage points. Citizens rioted in September 2010 after fuel water electricity and bread price increases were announced. In an attempt lessen the negative impact on people the government implemented subsidies decreased taxes and tariffs and instituted other fiscal measures. Real growth of more than 7% per year was achieved in 2010-12. Investment in the country's gas sector may raise Mozambique's economic growth to 8% per year through 2017.
Exports: $2.776 billion (2011 est.) Rank: 125 Commodities: aluminum prawns cashews cotton sugar citrus timber; bulk electricity Partners: South Africa 28.9% Belgium 15.1% Italy 11.8% Spain 8.5% China 6.6% (2011)
Imports: $4.187 billion (2011 est.) Rank: 125 Commodities: machinery and equipment vehicles fuel chemicals metal products foodstuffs textiles Partners: South Africa 35.4% China 10.2% India 8.4% US 6.6% Australia 6.1% Portugal 4.4% (2011)
Broadcast media: 1 state-run TV station supplemented by private TV station; Portuguese state TV's African service RTP Africa and Brazilian-owned TV Miramar are available; state-run radio provides nearly 100% territorial coverage and broadcasts in multiple languages; a number of privately-owned and community-operated stations; transmissions of multiple international broadcasters are available (2007)
Military service age and obligation: registration for military service is mandatory for all males and females at 18 years of age; 18-35 years of age for selective compulsory military service; 18 years of age for voluntary service; 2-year service obligation; women may serve as officers or enlisted (2010)
Illicit drugs: southern African transit point for South Asian hashish and heroin and South American cocaine probably destined for the European and South African markets; producer of cannabis (for local consumption) and methaqualone (for export to South Africa); corruption and poor regulatory capability make the banking system vulnerable to money laundering but the lack of a well-developed financial infrastructure limits the country's utility as a money-laundering center