An overview of the economy and government of mozambique

Portuguese East Africa Although the Portuguese participated in the trading networks of East Africa as early as the 16th century, they did not establish hegemonic total colonial dominance over the entire territory that now comprises Mozambique until the 19th century. Portugal founded settlements, trading posts, forts and ports. Others were expanded and developed greatly under Portuguese rule, like QuelimaneNampula and Sofala.

An overview of the economy and government of mozambique

At independence inMozambique was one of the world's poorest countries. Socialist policies, economic mismanagement, and a brutal civil war from to further impoverished the country. Inthe government embarked on a series of macroeconomic reforms designed to stabilize the economy.

Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, more than half the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force.

Citizens rioted in September after fuel, water, electricity, and bread price increases were announced. In an attempt to lessen the negative impact on the population, the government implemented subsidies, decreased taxes and tariffs, and instituted other fiscal measures.

A substantial trade imbalance persists, although aluminum production from the Mozal Aluminum Smelter has significantly boosted export earnings in recent years. The government has plans to expand the Cahora Bassa Dam and build additional dams to increase its electricity exports and fulfill the needs of its burgeoning domestic industries.

The sizable external debt burden, donor withdrawal, elevated inflation, and currency depreciation contributed to slower growth in Two major international consortiums are seeking approval to develop massive natural gas deposits off the coast of Cabo Delgado province, in what has the potential to become the largest infrastructure project in Africa.

The government predicts sales of liquefied natural gas from these projects could generate several billion dollars in revenues annually sometime after GDP purchasing power parity:World Bank assistance has evolved from helping to stabilize the economy to close collaboration with the government, development partners, and civil society.

Mozambique is a republic and a multiparty democracy. It has an executive president as head of state and government, who is directly elected for a five-year term and serves a maximum of two terms.

He or she appoints the prime minister and Council of Ministers.

An overview of the economy and government of mozambique

Mozambique is a republic and a multiparty democracy. It has an executive president as head of state and government, who is directly elected for a five-year term and serves a maximum of two terms. He or she appoints the prime minister and Council of Ministers.

Apr 19,  · World Bank assistance has evolved from helping to stabilize the economy to close collaboration with the government, development partners, and civil society.

Mozambique Overview. Provides an overview of Mozambique, including key events and facts about this former Portuguese colony and its recovery from a long civil war in the s. Page last updated on February 28, Economy - overview: At independence in , Mozambique was one of the world's poorest countries.

An overview of the economy and government of mozambique

Socialist policies, economic mismanagement, and a brutal civil war from to further impoverished the country.

Economy of Mozambique - Wikipedia