Mozambique Market Report
Sunbird’s 2017 Mozambique market report is a comprehensive update to our 2016 version. Our complete series of reports cover Kenya, Zambia, Tanzania and Uganda. This report seeks to outline the enormous potential the country holds, while simultaneously drawing attention to the challenges of doing business there.
Mozambique has been one of the most exciting prospects on the continent in recent years. It already has vast coal reserves and in 2010 the discovery of one of the largest gas finds in the last two decades added further potential. So far, recoverable reserves are enough to supply Britain for over 50 years. Since the end of the civil war in 1992, these natural assets have driven rapid growth of over 6% a year. However, the country still has a small, undiversified economy and the global commodity slump has hit it hard. Today the country faces a myriad of economic and political challenges. Public finances are in chaos and revelations concerning undisclosed debt taken on by the previous government have seen an erosion of confidence in the country as international support disintegrates. With its currency in free fall, inflation running rampant and public debt at 130% of GDP, the need to restore faith has never been greater. In order to regain the confidence of the IMF and the international community the Government must demonstrate its commitment to the responsible recovery of the country.
Reviving the economy is complicated further when set against a backdrop of increasing political division and insecurity. Old wounds are slow to heal and the void between the two main parties has not been as wide as this since the signing of the September Peace Accords in 2014. The opposition’s demands for devolution of power to the provinces have been met with stubborn resistance. This has seen the return of violent clashes, abductions and assassinations in certain parts of the country. As this standoff continues, the threat to the country’s economic recovery and the much-needed development of its resources continues to grow. This report assesses and explains this complex environment, providing insight, analysis and practical advice to support informed and objective decision making in the Mozambican business environment.