Overview

Mozambique borders Tanzania, Malawi, Zambia, Zimbabwe, South Africa, and Swaziland. Its long, Indian Ocean coastline of 2,500 kilometers faces east to Madagascar. 

About two-thirds of its estimated 33 million (2022) people live and work in rural areas. The country is endowed with ample resources, including arable land, abundant water sources, energy, and mineral resources, as well as newly-discovered deposits of natural gas off its coast. The country has three deep seaports and a relatively large potential pool of labor. It is also strategically located: four of the six countries it borders are landlocked and hence dependent on Mozambique as a gateway to global markets.

What are the development challenges in Mozambique?

The main challenges include maintaining the macroeconomic stability considering exposure to commodity price fluctuations and upcoming general elections, and reestablishing confidence through improved economic governance and increased transparency, including the transparent handling of the hidden debt investigation. Moreover, structural reforms are needed in support of the currently struggling private sector.

Cabo Delgado conflict. 

Mozambique has been grappling with an insurgency in parts of the gas-rich province of Cabo-Delgado since 2017. The government troops, aided by regional and Rwandan military contingents, have been successful in substantially reducing the incidence of the conflict, allowing thousands to return to their villages and towns. The conflict has however killed thousands and displaced over a million people, causing an unprecedented humanitarian crisis.

Source: World Bank 2023