Mozambique’s Economic Features

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Mozambique’s Economy
Current Demographic and Economic Features
Currently, Mozambique has a population of 33,388,278 as of October 2022 (Worldometer, 2022). Mozambique has a total land mass of 786,380 km² and a population density of 40 per km². In addition, 38.3% of Mozambique's population is urban and has a median age of 17.6 years. Maputo is the capital city of Mozambique and has a population of 1,191,613. Further, the life expectancy of females at birth is 65years while males are 59.1 years. In 2021, Mozambique had 15.64 million males and 16.53 females, creating a difference of 0.88 million more females. In addition, two-thirds of the approximated pop[ulation lives and works in rural areas
Mozambique borders Tanzania, Zambia, South Africa, Malawi, and Zimbabwe. The country has a long and extensive Indian ocean coastline of approximately 2500km to the East of Madagascar. Agriculture is Mozambique's main economic activity, contributing up to 25% of the Gross Domestic Product ( GDP) in 2020. Mozambique has adequate arable land, water, and energy. In addition, Mozambique is rich in minerals and recently discovered offshore natural gas, which is a boost to the economy of Mozambique. Its strategic location and nearness to the sea make Madagascar a conduit to the neighboring landlocked country. Thus, Zambia, Malawi, Zimbabwe, and Estawini depend on Madagascar for the global market. Mozambique shares strong economic ties with South Africa.
Agriculture, fisheries, and trade sustain the economy of Mozambique. Mozambique is a significant exporter of Vanilla, Gold, Titanium ore, Raw Nickel, crustaceans, and knit sweaters, while it imports petroleum oil, medicine, rice, fabric, motor vehicles, and palm oil. The United States of America ( USA), France, China, the United Arabs Emirates ( UAE), and Germany are significant exporters. Notably, Madagascar is a member of different regional trading blocs. It is a Member of the Common Market for Eastern and Southern Africa (COMESA), the South African Development Community, the African Continental Free Trade Area ( AFCFTA), the World Trade Organization (WTO), the United Nations Convention on Trade and Development( UNCTAD), Cotonou Agreement, Indian Ocean Commission, and Interim Economic Partnership Agreement with the European Union.
Basic Economic Indicators
In the colonial era, the economic system of Mozambique was mainly capitalist, in which the Portuguese would monopolize the state market and primary planning to raise capital. After independence, the system continued with FRELIMO, the ruling party but was, however, objected to by the RENAMO Party, who felt the system needed to change. The economic system changed to socialism, nationalizing properties and promoting training and education. After a bitter war, the economy collapsed severely. In an attempt to recover, International Monetary Funds came to aid with a plan of decentralization, privatization, and assistance to the farmers. The plans saw Mozambique's economy grow rapidly in terms of infrastructure, development of the manufacturing industry, and promotion of fishing, agriculture, and forestry industries. Currently, the GDP of Mozambique is 16.10 billion US dollars, with agricult...