The economy of Mozambique has developed since the end of the Mozambican Civil War (1977–1992). 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. Additional investment projects in titanium extraction and processing and garment manufacturing should further close the import/export gap.
The following tables and chart will tell the change details in last 5-10 years:
Mozambique Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Mozambique GDP 🙁 amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is a significant part of Mozambique’s economy. It employs almost 69.91% of total Mozambique’ workforce and contribute just 26.03% in economy.
Mozambique’s major agricultural products include cotton, cashew nuts, sugarcane, tea, cassava, corn, rice, tropical fruits, beef, and poultry. Agricultural exports include prawns, which are a type of shellfish similar to large shrimp, cashews, cotton, sugar, copra (a coconut product), citrus, coconuts, and timber.
Major Products in this Sector:
Tobacco: Mozambique’s tobacco industry forms part of its agricultural sector and contributes about a third of total agricultural exports and almost 4% of the value of the country’s total exports of goods and services. The majority of the agricultural sector is made up of subsistence farming, with mostly small family farms growing tobacco alongside other crops. About 130,000 to 150,000 farmers grow tobacco in Mozambique. While demand for tobacco in traditional global markets has been declining, Asian and African demand has been growing steadily and leaf sourcing is moving to low-cost producing countries, making the Mozambican tobacco sector attractive for investors.
Industry is an important part in the Mozambique’ economy. It accounts for 22.86% of GDP and employed almost 6% of the workforce.
Major Industries in this Sector:
Mining: The mining industry arguably represents one of Mozambique’s most important sectors and stands at the forefront of the country’s development efforts. Mining is one of the principal drivers of the national economy and its contribution to the GDP continues to increase. Mozambique is one of the largest producers of tantalite and beryllium, the country boasts strategic reserves of both these minerals. Mozambique also hosts one of the world’s largest aluminum smelters, with an installed capacity to produce 560,000 tons of aluminum ingot a year. The Mozambican province of Tete is known as one of the world’s largest coal reserves, although its level of production has decreased in recent years.
Service sector is an important part in the Mozambique’s economy. It contributes almost 39.9% in the GDP and employed almost 24.09% of the total Mozambique’s workforce.
Major Industries in this Sector:
Finance: The banking system, dominated by the Portuguese collapsed after independence in 1975. From an earlier position (in the 1980s) of central government control of the economy, Mozambique has initiated rapid reforms in recent years, accelerating the implementation of market-based economic policies, and committing to a policy of fiscal and monetary discipline. On 11 December 2012, the Mozambican Government acquire the Portuguese shares of BNI Banco Nacional de Investimento, owning 100% of the bank and turning it into the country’s development bank.
Tourism: In 2019, contribution of travel and tourism to GDP (% of GDP) for Mozambique was 8.2 %. Though Mozambique contribution of travel and tourism to GDP (% of GDP) fluctuated substantially in recent years, it tended to increase through 2000 – 2019 period ending at 8.2 % in 2019. The tourism assets of Mozambique include the country’s natural environment, wildlife, and cultural heritage, which provide opportunities for beach, cultural, and eco-tourism.
Top Companies in Mozambique: