Mozambique: INTRODUCTION

The document describes Mozambique as a low-income country with significant mineral and marine resources but persistent structural challenges. While the country saw rapid growth between 1993 and 2015 and improvements in health and electricity access, it has struggled with a narrow productive base and high poverty levels. Recent growth has slowed due to the 'hidden debt' scandal, insurgency, and climate shocks. The report highlights the risk that gas megaprojects may not lead to inclusive development without strategic governance and economic diversification.

• Between 1993 and 2015, Mozambique was one of Africa's fastest-growing economies with an average annual growth rate of approximately 8%, driven by post-war reconstruction, macroeconomic stability, and foreign investment in extractive industries.
• Despite historical growth, Mozambique's economy lacks structural transformation because it relies on capital-intensive extractive industries that provide few links to manufacturing or other value-adding sectors. Agriculture remains low-productivity and vulnerable to climate change and weather shocks.
• Mozambique faces extreme poverty and high inequality; in 2023, approximately 81% of the population lived below the international extreme poverty line of US$3 per day. Wealth is highly concentrated, with the top 10% of the population holding about 72% of the country's wealth.
• Economic growth slowed to an average of 2.9% between 2016 and 2024, impacted by the 'hidden debt' scandal, the COVID-19 pandemic, recurring tropical cyclones, and an insurgency in the north.
• There are high expectations that gas megaprojects in northern provinces will drive development, but the document warns that resource extraction often fails to deliver inclusive growth and can worsen governance challenges without transparent management and investment in human capital and diversification.

APA

Yeboua, K., & Chipanda, B. (2026). Mozambique: INTRODUCTION. Institute for Security Studies. https://futures.issafrica.org/geographic/guide.pdf?geography=MZ&topic=01-intro

Chicago

Yeboua, Kouassi, and Blessing Chipanda. Mozambique: INTRODUCTION. Institute for Security Studies, 2026. https://futures.issafrica.org/geographic/guide.pdf?geography=MZ&topic=01-intro.

Wikipedia

{{cite report |last1=Yeboua |first1=Kouassi |last2=Chipanda |first2=Blessing |title=Mozambique: INTRODUCTION |publisher=Institute for Security Studies |date=31 May 2026 |url=https://futures.issafrica.org/geographic/guide.pdf?geography=MZ&topic=01-intro |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yeboua2026mozambique, author = {Yeboua, Kouassi and Chipanda, Blessing}, title = {{Mozambique: INTRODUCTION}}, institution = {Institute for Security Studies}, year = {2026}, month = may, url = {https://futures.issafrica.org/geographic/guide.pdf?geography=MZ&topic=01-intro}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }