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Mozambique Mozambique

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Mozambique

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EconomicPoliticalStructural

Mozambique – Quick View
ECR score38.79 (Mar 2011)
ECR rank101 (Mar 2011)
Economic
GDP 2010USD 0.00559 billion
GNI per capita PPP 2009USD 880
FDI inflow 2009USD 881.2 million
Inflation 201012.4%
Central bank assetsUSD 2.138 million
Unemployment rate 2004-0518.7%
Government deficit 2010USD 0.13 million
Tax revenue 2010USD 1.725 million
Political
Government typePresidential Representative Democratic Republic
Recent political crisisNA
Economic freedom score109th
Freedom of information score98th
Corruption perception index116th
Structural
Birth rate39.4 per '000
Population balance0-14 years – 44%
Population balance15-60 years – 50.4%
Population balanceAbove 60 years – 5.6%
Life expectancyMale - 46.9 years
Life expectancyFemale – 48.7 years
Mortality rate15.7 per '000
Literacy rate 200854%
Internet access2.8%

[Top] Economic Overview

Gross domestic product (GDP)

In 2010, GDP at constant prices (2003=100) was MZN 183.21 billion, an increase of 6.6% over 2009.

 

Mozambique GDP at constant prices

(Source: National Institute of Statistics)

 

GDP growth rate

 

In 2010, GDP increased by 6.6% compared to 2009. Mozambique's GDP increased in 2010 primarily due to the agricultural sector which grew 6.4% over 2009. In 2010, the agricultural sector contributed 24% to GDP at constant prices.

 

Mozambique Real GDP growth rate

(Source: National Institute of Statistics)

 

Gross national income (GNI)

GNI per capita in Mozambique was USD 880 in 2009, an increase of 11.39% from 2008.

 

 

Mozambique GNI per capita

(Source: World Bank.Org)

Income tax rate

Income tax on Individual incomes in Mozambique was levied at 32%

·         25% on monthly incomes above USD 7,000

·         32% tax rate applied on monthly income of USD 27,000

(Source: taxrates.cc)

Corporate tax rate

Corporate tax on companies is levied at 32%.

(Source: taxrates.cc)

Inflation rate

Mozambique has been experiencing high inflation rates since 2005. The inflation rates have levelled off since 2009. In 2010, the inflation rates rose 12.40% over 2009.

 

 

 

Mozambique Inflation rate

(Source: worldbank.org, Bank of Mozambique)

 

FDI Inflow

In 2009, FDI inflow was USD 881.2 million, an increase of 49% compared to 2008.

Brazil accounted for approximately 42.5% of total FDI in 2009. The total capital invested in Mozambique by other foreign countries in Mozambique include Mauritius (22.1%), Portugal (11.4%), Switzerland (4.9%), South Africa (4.7%), Ireland (3.7%), Netherlands (3.2%), UK (3.1%), Kuwait (0.9%), United Arab Emirates (0.7%), Sweden (0.6%) and Others (2.2%).

(Source: Bank of Mozambique)

Banking sector assets

The assets of the Bank of Mozambique are:

 

Balance Sheet – Assets of Bank of Mozambique (MZN '000)

 

2009

2008

Foreign currency held in cash

102,475

112,020

Due from banks

29,597,749

17,442,205

Gold

2,423,745

2,108,429

Financial assets held-for-trading

15,248,995

16,352,912

Financial assets available-for-sale

14,031,097

10,870,966

Property, plant and equipment

2,240,683

2,157,823

Intangible assets

47,565

20,901

Other assets

6,427,840

4,072,981

Total Assets

70,120,148

53,138,237

(Source: Bank of Mozambique)

 

 

 

 

[Top] Financial Indicators & Government Financial

Consumer price index

The CPI in Mozambique increased at a slow pace in 2009 and 2010. In January 2009, the consumer price index was 83.93 points and increased to 100 points in December 2010.

 

Mozambique CPI

(Source: National Institute of Statistics)

 

Interest rates

Since 2010, interest rates on bank lending and deposits have been as follows:

Interest Rate on Bank Lending (Sep. 2010)

Maturity

Rate (%)

7 days

21.72

15 days

26.30

30 days

22.93

45 days

21.81

60 days

21.97

90 days

23.62

180 days

22.57

1 year

20.91

2 year

22.14

More than 2 year

21.43

(Source: Bank of Mozambique)

Interest Rate on Bank Deposits (Sep. 2010)

Maturity

Rate (%)

30 days

9.42

45 days

10.08

60 days

8.57

90 days

9.62

180 days

10.36

1 year

10.52

+ 1 year

11.04

(Source: Bank of Mozambique)

 

Money supply (Currency in Circulation)

The two monetary aggregate measures are - M2 and M3.

M2 refers to time deposits, exchange bills, mortgage bonds and real estate bonds.

M3 refers to notes and coins outside the banking system and residents deposits within the national banking system, excluding those of the state and the monetary institutions.

 

Monetary Aggregates in Mozambique (MZN million)

 

2009

2008

M2

72,535

53,888

M3

107,074

80,724

 

(Source: Bank of Mozambique)

Government expenditure

In 2010, total government expenditure was MZN 100,804 million, an increase of 27.4% over 2009.

31% of total expenditure was spent on general public services accounting for MZN 31,380.3 million, followed by the education sector for which government spending amounted to MZN 20,328.5 million. 19% of total expenditure was also spent on other areas of the economy.

 

 

 

Mozambique Total expenditure

(Source: Ministry of Finance, Mozambique)

Official exchange rate

MZN/USD rate in 2010 was 0.0305. In 2010, the exchange rate decreased slightly over 2009.

 

Mozambique Exchange rate

(Source: oanda.com)

 

Government finances

Total revenues

In 2010, total revenues in Mozambique amounted to MZN 63,476.1 million, an increase of 33.9% over 2009.

(Source: Ministry of Finance, Mozambique)

Tax revenues

In 2010, tax revenues amounted to MZN 56,574.5 million contributing 89.12% to the total revenues in Mozambique.

(Source: Ministry of Finance, Mozambique)

Domestic borrowing

In 2010, domestic borrowing of in Mozambique amounted to MZN 4,417.6 million.

(Source: Ministry of Finance, Mozambique)

Grants

Total foreign grants in 2010 amounted to MZN 26,508.1 million

(Source: Ministry of Finance, Mozambique)

Balance of payments

Mozambique has been running a current account deficit for the last five years. In 2009, Mozambique had a deficit of USD 1063.6 million, a decrease of 9.81% over 2008

Balance of Payments (USD million)

 

2005

2006

2007

2008

2009

Current AccountBalance

-760.6

 

-773.2

 

-785.3

 

-1179.4

 

-1063.6

 

Balance on Goods and Services

-803.7

 

-639.5

 

-795.8

 

-1400.5

 

-1732.1

 

Capital account

187.9

 

334.5

 

415.1

 

419.9

 

422.3

 

Financial account

95.2

 

-1501.7

 

446.7

 

772.7

 

862.6

 

Errors and Omissions

296.0

 

141.7

 

59.9

 

107.0

 

-27.7

 

(Source: Bank of Mozambique)

 

[Top] Labour Force and Employment Overview

The labour force participation rate for women in Mozambique was 88.1% and 77.4%  for men in 2008.

(Source: UN)

Unemployment rate

The unemployment rate in Mozambique was 18.7% in  2004-2005. The female unemployment rate accounted for 21.7% and the male unemployment rate accounted for 14.7% in 2004-2005.

(Source: National Institute of Statistics)

Employment rate

The employment rate in Mozambique was 74.6% in 2004-2005. The female employment rate was 77.6% and and the male employment rate was 72.3% in 2004-2005.

(Source: National Institute of Statistics)

Employment

The agricultural sector employs the majority of people in Mozambique, followed by construction industry and administrative services.

 

Mozambique Distribution of Economically active people

(Source: National Institute of Statistics)

Minimum wage

In 2008, the minimum monthly wage in Mozambique was MZN 1826.2.

(Source: National Institute of Statistics)

[Top] Political Stability

Mozambique is a democratic republic based on multiparty political system. The power in Mozambique is shared at three different levels – the legislative, the xecutive, and the judiciary. Legislative powers are exercised by the president and the Assembly of the Republic. Executive powers are exercised by the government and the Ppesident. The judicial powers are free from legislative and executive powers and are executed by the courts of law.

President

The president is the head of state and commander in chief of the armed forces. He is elected for a five year term by direct universal suffrage.

Government

The Government of Mozambique is formed by the Council of Ministers. The Council of Ministers consists of the president, prime minister and the ministers.

Formulation of government policy is done by the Council of Ministers in sessions chaired by the President.

The Council of Ministers ensures efficient public administration, guarantees Mozambique's territorial integrity, safeguards public order, security and stability of its citizens, promotes economic development, implements the state's social policy, develops and consolidates the law and carries out foreign policy.

Parliament

Legislative power is exercised by parliament and is also known as the Assembly of the Republic. There are 250 members in total and each member is elected for a five year term by direct universal suffrage.

(Source: portaldogoverno.gov.mz, presidencia.gov.mz)

The main political parties active in Mozambique are:

·         Democratic Party for Reconciliation in Mozambique (PAMOMO)

·         Frelimo (Front for the Liberation of Mozambique)

·         Independent Party of Mozambique (PIMO)

·         Liberal and Democratic Party of Mozambique (SPAN)

·         Renamo - Electoral Union

(Source: portaldogoverno.gov.mz)

 

Business and economic freedom

Mozambique scores 56.8 on the index of economic freedom making it the 109th freest economy in 2011.

Mozambique Economic Freedom Scores

 

(Source: Heritage.org)

Corruption perception

Mozambique ranked 116th position on the Corruption Perceptions Index (CPI) 2010. CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: transparency.org)

Freedom of information

The constitution of Mozambique protects the rights to freedom of expression, the rights to freedom of the press and the right to information.

The media in Mozambique is regulated by the Supreme Mass Media Council, an independent body. The Supreme Mass Media Council guarantees press freedom and the public's right to information. The media in Mozambique is governed by specific law.

The national television network in Mozambique is Televisão de Moçambique (TVM) and the state owned radio station is Rádio Moçambique (RM) which covers most of the country, including rural areas.

Press Freedom Index 2010 ranks Mozambique at 98th position.

(Source: eisa.org, rsf.org)

 

Newspapers

·         Demos

·         Diario de Mocambique

·         Domingo

·         Noticias

·         Zambeze

(Source: BBC News)

Judicial system

The judicial system in Mozambique consists of:

·         Supreme court

·         Administrative court

·         Lower courts

·         Specialised courts

The Supreme Court consists of professional judges, appointed by the president and judges elected by the Assembly of the Republic.

The Administrative Court looks after public administration and spending.

The Constitutional Council has jurisdiction over matters of constitutional and electoral law.

(Source: Electoral Institute for the Sustainability of Democracy in Africa)

 

 

 

 

[Top] Demographic Overview

The total population of Mozambique in 2010 was 22.4 million, increasing at a rate of approximately 5.9% over the previous year.

(Source: National Institute of Statistics)

Mozambique Population by gender

The total female population in 2010 was 11.6 million while the male population was 10.8 million accounting for approximately 48.17% of the total population.

(Source: National Institute of Statistics)

The population in the 15-60 year age group accounts for the highest share with 50.4%, followed by the age group of 0-14 years accounting for 44% of the total population.

Mozambique Population distribution by age

(Source: un.org)

The life expectancy at birth in 2007 was 47.9 years. The average life expectancy in Mozambique for men was 59 years and for women it was 62.6 years in 2010.

(Source: National Institute of Statistics, UN)

Birth rate and death rate

In 2007, the birth rate (per 1,000 live births) was 39.4 and the death rate (per 1,000 inhabitants) was 15.7.

(Source: National Institute of Statistics)

Infant mortality rate

In 2007, the infant mortality rate (per 1,000) was 99.2.

 

(Source: National Institute of Statistics)

 Migration

 

Migration 2010

Estimated number of international migrants at mid-year

450,020

Estimated number of refugees at mid-year

2,663

International migrants as a percentage of the population

1.9

Refugees as a percentage of international migrants

0.6

 

(Source: un.org)

Ethnic groups

The main ethnic groups present in Mozambique are:

·         Makhuwa

·         Tsonga

·         Makonde

·         Shangaan

·         Shona

·         Sena

·         Ndau

(Source: state.gov)

Poverty

In 2008-2009, the percentage of people living below the poverty line in Mozambique was 54.7%. The number of people below the poverty line increased from 9.9 million to 11.7 million people, between 2002/03 and 2008/09.

(Source: undp.org)

 

Mozambique ranked 165th on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and basic standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

[Top] Soft Infrastructure

Education

In Mozambique, education is compulsory for every citizen aged from 6 to 15. There are four levels of education:

·         Pre-school

·         Primary education

·         Secondary education

·         Higher education

Pre-school education is provided by kindergartens and nursery schools before the age of six.

Primary school education forms the first level of general education. Children aged six are enrolled for primary education in Mozambique. The duration of primary education is from 6-12 years of age.

The second level of general education is secondary school. Students aged 12-15 years go for lower secondary education after the completion of primary education. Post compulsory secondary education includes general upper secondary education and vocational training from 15-18 years of age.

Higher education consists of bachelor degrees (graduation) at university level. One year diploma programmes are also offered for post graduation.

(Source: unesco.org)

Literacy rate

In 2008,

·         Literacy rate in Mozambique for people aged 15 years and above was 54%

·         Literacy rate for young females (% of females ages 15-24) was 62%

·         Literacy rate for young males (% of males ages 15-24) was 78%

·         Literacy rate for the youth in total (% of people ages 15-24) was 70%

·         Literacy rate for adult females (% of females ages 15 and above) was 40%

·         Literacy rate for adult males (% of males ages 15 and above) was 70%

(Source: World Bank)

 

Education resources

 

Number of Students in Schools

 

2009

2008

2007

2006

Public Primary School

3,597,392

3,866,906

4,109,298

4,233,454

Public Secondary School

426,573

366,345

311,903

255,567

Private primary school

66,184

67,668

65,585

61,026

Private secondary school

50,878

45,960

47,607

40,526

Professional Technical Education

5,810

3,068

1,954

1,811

(Source: National Institute of Statistics)

Health care

Number of Beds in National Hospitals

 

2009

2008

2007

2006

2005

Maternity

6,167

5,730

5,424

5,314

5,139

Other

11,174

10,195

12,275

11,614

11,932

(Source: National Institute of Statistics)

 

Number of Medicos in the National Health Service

 

2009

2008

2007

2006

2005

Medicos

1,042

735

916

874

570

(Source: National Institute of Statistics)

 

 

[Top] Hard Infrastructure

Mass public transit

The various means of public transport in Mozambique includes buses, cabs and trains.

(Source: Mozambique embassy)

Roadways

The total length of the road network in Mozambique was 34,328 Km in 2008.

(Source: National Institute of Statistics)

Ports

Mozambique has three main ports: Maputo, Beira and Nacala. The Port of Maputo has an installed capacity of 12,010,000 tons per year, but it presently oprates at a capacity of 9,255,500 tons per year.(Source: worldbank.org)

Airports

There are approximately 22 airports in Mozambique.

Airports in Mozambique

Town

Airport name

Runway length (ft.)

Angoche

Angoche

3,600

Beira

Beira

7,800

Bilene

Bilene

2,200

Chimoio

Chimoio

7,800

Cuamba

Cuamba

8,200

Inhaca

Inhaca

2,100

Inhambane

Inhambane

4,900

Lichinga

Lichinga

8,300

Lumbo

Lumbo

4,900

Maputo

Maputo

12,000

Marrupa

Marrupa

5,600

Mocimboa Da Praia

Mocimboa Da Praia

6,500

Nacala

Nacala

8,200

Nampula

Nampula

6,500

Pemba

Pemba

5,900

Ponta De Ouro

Ponta De Ouro

2,400

Quelimane

Quelimane

5,900

Songo

Songo

2,900

Tete

Chingozi

8,200

Ulongwe

Ulongwe

5,900

Vilankulu

Vilankulu

4,800

(Source: aircraft-charter-world.com)

 

Telecommunications

In 2009, there were 82,447 fixed telephone subscribers, an increase of 24.93% compared to 2005.

 

 

Mozambique Fixed telephone line subscribers

 

 

(Source: itu.int)

In 2009, there were 5.9 million mobile phone subscribers in Mozambique, an increase of 297% over 2005.

Mozambique Mobile telephone subscribers

 

(Source: itu.int)

Internet access

In 2010, Mozambique had 612,000 internet users and the internet penetration rate was 2.8% of the population.

(Source: internetworldstats.com)

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