Mozambique

GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Mozambique
Geography
Area: 799,380 sq. km.; about twice the size of California.
Major cities: Capital--Maputo (pop. 1.2 million--2005 est.) Beira,
Matola, Nampula, Quelimane, Tete, Nacala.
Terrain: Varies from lowlands to high plateau.
Climate: Tropical to subtropical.
People
Nationality: Noun and adjective--Mozambican(s).
Population (2005 est.): 19.4 million; 48.2% male and 51.8% female.
Population annual growth rate (2004)--1.8%.
Ethnic groups: Makua, Tsonga, Makonde, Shangaan, Shona, Sena,
Ndau, and other indigenous groups, and approximately 10,000 Europeans,
35,000 Euro-Africans, and 15,000 South Asians.
Religions: Christian 30%, Muslim 17%, indigenous African and other
beliefs 45%.
Languages: Portuguese (official), various indigenous languages.
Education: Mean years of schooling (adults over 25): men 2.1,
women 1.2. Primary net enrolment rate (2003)--61%. Adult illiteracy
rate (2003)--53.6%.
Health: Infant mortality rate (2004)--104/1,000. Life expectancy
(2004)--42 years.
Work force (9.2 million est. 2004): Agriculture--81%; industry--6%;
services--13%.
Government
Type: Multi-party democracy.
Independence: June 25, 1975.
Constitution: November 1990.
Branches: Executive--President, Council of Ministers. Legislative--National
Assembly, municipal assemblies. Judicial--Supreme Court, provincial,
district, and municipal courts. Administrative subdivisions: 10
provinces, 224 districts, and 33 municipalities, of which Maputo
City is the largest.
Political parties: Front for the Liberation of Mozambique (FRELIMO);
Mozambican National Resistance (RENAMO); numerous small parties.
Suffrage: Universal adult, 18 years and older.
Economy
GDP (2005): $5.5 billion.
Annual economic (GDP) growth rate (2004): 8.2%.
Per capita gross national income (2004): $250.
Per capita gross domestic product (2004): $276.
Natural resources: Hydroelectric power, coal, natural gas, titanium
ore, tantalite, graphite, iron ore, semi-precious stones, and
arable land.
Agriculture (25.2% of GDP; annual growth 7.9%): Exports--cotton,
cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts,
sisal, citrus and tropical fruits, potatoes, sunflowers, beef
and poultry. Domestically consumed food crops--corn, pigeon peas,
cassava, rice, beef, pork, chicken, and goat.
Industry (35.1% of GDP; annual growth 10%): Types--food, beverages,
chemicals (fertilizer, soap, paints), aluminum, petroleum products,
textiles, cement, glass, asbestos, and tobacco.
Services (39.7% of GDP; annual growth 4.7%).
Trade: Imports (2004)--$1.424 billion. Import commodities: Machinery
and equipment, vehicles, fuel, chemicals, metal products, foodstuffs
and textiles. Main suppliers: South Africa, Australia, U.S., Portugal,
Japan. Exports (2004)--$1.258 billion. Export commodities: Aluminum,
cashews, prawns, cotton, sugar, citrus, timber, bulk electricity,
natural gas. Main markets: Belgium, South Africa, Spain, Portugal.
PEOPLE
Mozambique's major ethnic groups encompass numerous subgroups
with diverse languages, dialects, cultures, and histories. Many
are linked to similar ethnic groups living in neighboring countries.
The north-central provinces of Zambezia and Nampula are the most
populous, with about 45% of the population. The estimated 4 million
Makua are the dominant group in the northern part of the country--the
Sena and Ndau are prominent in the Zambezi valley, and the Tsonga
and Shangaan dominate in southern Mozambique.
Despite the influence of Islamic coastal traders and European
colonizers, the people of Mozambique have largely retained an
indigenous culture based on small-scale agriculture. Mozambique's
most highly developed art forms have been wood sculpture, for
which the Makonde in northern Mozambique are particularly renowned,
and dance. The middle and upper classes continue to be heavily
influenced by the Portuguese colonial and linguistic heritage.
During the colonial era, Christian missionaries were active in
Mozambique, and many foreign clergy remain in the country. According
to the national census, about 20%-30% of the population is Christian,
15%-20% is Muslim, and the remainder adheres to traditional beliefs.
Under the colonial regime, educational opportunities for black
Mozambicans were limited, and 93% of that population was illiterate.
In fact, most of today's political leaders were educated in missionary
schools. After independence, the government placed a high priority
on expanding education, which reduced the illiteracy rate to about
two-thirds as primary school enrollment increased. Unfortunately,
in recent years school construction and teacher training enrollments
have not kept up with population increases. With post-war enrollments
reaching all-time highs, the quality of education has suffered.
HISTORY
Mozambique's first inhabitants were San hunter and gatherers,
ancestors of the Khoisani peoples. Between the first and fourth
centuries AD, waves of Bantu-speaking peoples migrated from the
north through the Zambezi River valley and then gradually into
the plateau and coastal areas. The Bantu were farmers and ironworkers.
When Portuguese explorers reached Mozambique in 1498, Arab-trading
settlements had existed along the coast and outlying islands for
several centuries. From about 1500, Portuguese trading posts and
forts became regular ports of call on the new route to the east.
Later, traders and prospectors penetrated the interior regions
seeking gold and slaves. Although Portuguese influence gradually
expanded, its power was limited and exercised through individual
settlers who were granted extensive autonomy. As a result, investment
lagged while Lisbon devoted itself to the more lucrative trade
with India and the Far East and to the colonization of Brazil.
By the early 20th century the Portuguese had shifted the administration
of much of the country to large private companies, controlled
and financed mostly by the British, which established railroad
lines to neighboring countries and supplied cheap--often forced--African
labor to the mines and plantations of the nearby British colonies
and South Africa. Because policies were designed to benefit white
settlers and the Portuguese homeland, little attention was paid
to Mozambique's national integration, its economic infrastructure,
or the skills of its population.
After World War II, while many European nations were granting
independence to their colonies, Portugal clung to the concept
that Mozambique and other Portuguese possessions were overseas
provinces of the mother country, and emigration to the colonies
soared. Mozambique's Portuguese population at the time of independence
was about 250,000. The drive for Mozambican independence developed
apace, and in 1962 several anti-colonial political groups formed
the Front for the Liberation of Mozambique (FRELIMO), which initiated
an armed campaign against Portuguese colonial rule in September
1964. After 10 years of sporadic warfare and major political changes
in Portugal, Mozambique became independent on June 25, 1975.
The last 30 years of Mozambique's history have reflected political
developments elsewhere in the 20th century. Following the April
1974 coup in Lisbon, Portuguese colonialism collapsed. In Mozambique,
the military decision to withdraw occurred within the context
of a decade of armed anti-colonial struggle, initially led by
American-educated Eduardo Mondlane, who was assassinated in 1969.
When independence was achieved in 1975, the leaders of FRELIMO's
military campaign rapidly established a one-party state allied
to the Soviet bloc and outlawed rival political activity. FRELIMO
eliminated political pluralism, religious educational institutions,
and the role of traditional authorities.
The new government gave shelter and support to South African
(ANC) and Zimbabwean (ZANU) liberation movements while the governments
of first Rhodesia and later apartheid South Africa fostered and
financed an armed rebel movement in central Mozambique called
the Mozambican National Resistance (RENAMO). Civil war, sabotage
from neighboring states, and economic collapse characterized the
first decade of Mozambican independence. Also marking this period
were the mass exodus of Portuguese nationals, weak infrastructure,
nationalization, and economic mismanagement. During most of the
civil war, the government was unable to exercise effective control
outside of urban areas, many of which were cut off from the capital.
An estimated 1 million Mozambicans perished during the civil war,
1.7 million took refuge in neighboring states, and several million
more were internally displaced. In the third FRELIMO party congress
in 1983, President Samora Machel conceded the failure of socialism
and the need for major political and economic reforms. He died,
along with several advisers, in a suspicious 1986 plane crash.
His successor, Joaquim Chissano, continued the reforms and began
peace talks with RENAMO. The new constitution enacted in 1990
provided for a multi-party political system, market-based economy,
and free elections. The civil war ended in October 1992 with the
Rome General Peace Accords. Under supervision of the ONUMOZ peacekeeping
force of the United Nations, peace returned to Mozambique.
By mid-1995 the more than 1.7 million Mozambican refugees who
had sought asylum in neighboring Malawi, Zimbabwe, Swaziland,
Zambia, Tanzania, and South Africa as a result of war and drought
had returned, as part of the largest repatriation witnessed in
Sub-Saharan Africa. Additionally, a further estimated 4 million
internally displaced people returned to their areas of origin.
GOVERNMENT AND POLITICAL CONDITIONS
Mozambique is a multi-party democracy under the 1990 constitution.
The executive branch comprises a president, prime minister, and
Council of Ministers. There is a National Assembly and municipal
assemblies. The judiciary comprises a Supreme Court and provincial,
district, and municipal courts. Suffrage is universal at 18.
In 1994 the country held its first democratic elections. Joaquim
Chissano was elected President with 53% of the vote, and a 250-member
National Assembly was voted in with 129 FRELIMO deputies, 112
RENAMO deputies, and 9 representatives of three smaller parties
that formed the Democratic Union (UD). Since its formation in
1994, the National Assembly has made progress in becoming a body
increasingly more independent of the executive. By 1999, more
than one-half (53%) of the legislation passed originated in the
Assembly.
After some delays, in 1998 the country held its first local elections
to provide for local representation and some budgetary authority
at the municipal level. The principal opposition party, RENAMO,
boycotted the local elections, citing flaws in the registration
process. Independent slates contested the elections and won seats
in municipal assemblies. Turnout was very low.
In the aftermath of the 1998 local elections, the government
resolved to make more accommodations to the opposition's procedural
concerns for the second round of multiparty national elections
in 1999. Working through the National Assembly, the electoral
law was rewritten and passed by consensus in December 1998. Financed
largely by international donors, a very successful voter registration
was conducted from July to September 1999, providing voter registration
cards to 85% of the potential electorate (more than 7 million
voters).
The second general elections were held December 3-5, 1999, with
high voter turnout. International and domestic observers agreed
that the voting process was well organized and went smoothly.
Both the opposition and observers subsequently cited flaws in
the tabulation process that, had they not occurred, might have
changed the outcome. In the end, however, international and domestic
observers concluded that the close result of the vote reflected
the will of the people.
President Chissano won the presidency with a margin of 4% points
over the RENAMO-Electoral Union coalition candidate, Afonso Dhlakama,
and began his 5-year term in January 2000. FRELIMO increased its
majority in the National Assembly with 133 out of 250 seats. RENAMO-UE
coalition won 116 seats, one went independent, and no third parties
are represented.
The opposition coalition did not accept the National Election
Commission's results of the presidential vote and filed a formal
complaint to the Supreme Court. One month after the voting, the
court dismissed the opposition's challenge and validated the election
results. The opposition did not file a complaint about the results
of the legislative vote.
The second local elections, involving 33 municipalities with
some 2.4 million registered voters, took place in November 2003.
This was the first time that FRELIMO, RENAMO-UE, and independent
parties competed without significant boycotts. The 24% turnout
was well above the 15% turnout in the first municipal elections.
FRELIMO won 28 mayoral positions and the majority in 29 municipal
assemblies, while RENAMO won 5 mayoral positions and the majority
in 4 municipal assemblies. The voting was conducted in an orderly
fashion without violent incidents. However, the period immediately
after the elections was marked by objections about voter and candidate
registration and vote tabulation, as well as calls for greater
transparency.
In May 2004, the government approved a new general elections
law that contained innovations based on the experience of the
2003 municipal elections.
Presidential and National Assembly elections took place on December
1-2, 2004. FRELIMO candidate Armando Guebuza won with 64% of the
popular vote. His opponent, Afonso Dhlakama of RENAMO, received
32% of the popular vote. FRELIMO won 160 seats in Parliament.
A coalition of RENAMO and several small parties won the 90 remaining
seats. Armando Guebuza was inaugurated as the President of Mozambique
on February 2, 2005.
Principal Government Officials
President--Armando Guebuza
Prime Minister--Luisa Diogo
Minister of Foreign Affairs and Cooperation--Alcinda Abreu
Minister of Finance--Manuel Chang
Minister of National Defense--Tobias Dai
Minister of the Interior--Jose Pacheco
Minister of Industry and Commerce--Antonio Fernando
Ambassador to the United States--Armando Panguene
Mozambique maintains an embassy in the United States at 1990
M Street, NW, Suite 570, Washington, DC 20036; tel: 202-293-7146.
ECONOMY
Macroeconomic Review
Alleviating poverty. At the end of the civil war in 1992, Mozambique
ranked among the poorest countries in the world. It still ranks
among the least developed nations with very low socioeconomic
indicators. In the last decade, however, it has experienced a
notable economic recovery. Per capita GDP in 2004 was estimated
at U.S. $276, a significant increase over the mid-1980s level
of U.S. $120. With a high foreign debt (originally $5.7 billion
at 1998 net present value) and a good track record on economic
reform, Mozambique was the first African country to receive debt
relief under the initial HIPC (Heavily Indebted Poor Countries)
Initiative. In April 2000, Mozambique qualified for the Enhanced
HIPC program as well and attained its completion point in September
2001. This led to the Paris Club members agreeing in November
2001 to substantially reduce the remaining bilateral debt. This
led to the complete forgiveness of a considerable volume of bilateral
debt. The United States has finished this process and forgiven
Mozambique's debt.
During their summit in Scotland in July 2005, the G8 nations
agreed to significant multilateral debt relief for the world’s
least developed nations. On December 21, 2005, the IMF formalized
the complete cancellation of all Mozambican IMF debt contracted
prior to January 1, 2005.
Rebounding growth. The resettlement of civil war refugees, political
stability and continuing economic reforms have led to a high economic
growth rate. Between 1994 and 2004 average annual GDP growth was
8.2%. Mozambique achieved this growth rate even though the devastating
floods of 2000 slowed GDP growth to 2.1%. The economy bounced
back and consistent GDP growth rates between 7% and 8% are expected
again in 2005 and 2006, with the World Bank predicting average
growth of 7% from 2004 through 2008. The Government of the Republic
of Mozambique projects similar growth expansion (between 7%-10%
a year over the next five years), but future strong expansion
requires continued economic reforms, major foreign direct investment,
and the resurrection of the agriculture, transportation and tourism
sectors. Focusing on economic growth in the agricultural sector
is a major challenge for the government. Although more than 80%
of the population engages in small-scale agriculture, the sector
suffers from inadequate infrastructure, commercial networks and
investment. However a majority of Mozambique’s arable land
is still uncultivated, leaving room for considerable growth.
Low inflation. The government’s tight control of spending
and the money supply, combined with financial sector reform, successfully
reduced inflation from 70% in 1994 to less than 5% in 1998-1999.
Economic disruptions resulting from the devastating floods of
2000 caused inflation to jump to 12.7% that year. The government
is still working to bring inflation down to those lower numbers.
In 2003 inflation reached 13.5%; in 2004 it decreased slightly
to 12.6% (consumer price index used to measure inflation rates).
As of late December 2005, the exchange rate was approximately
24,000 meticais per dollar, though it had been as low as 18,000
and as high as 29,000 at different times during 2005. Beginning
in the summer of 2006, the government will introduce a "new
family" of Meticais. One new Metical will be worth 1,000
old Meticais. This reform is an attempt to simplify the rather
complicated currency, where prices often run in the millions of
Meticais due to denomination size.
Extensive economic reform. Economic reform has been extensive.
More than 1,200 state-owned enterprises (mostly small) have been
privatized. Preparations for privatization and/or sector liberalization
are underway for the remaining parastatals, including telecommunications,
electricity, ports, and the railroads. The government frequently
selects a strategic foreign investor when privatizing a parastatal.
Additionally, customs duties have been reduced, and customs management
has been streamlined and reformed. The government introduced a
highly successful value-added tax in 1999 as part of its efforts
to increase domestic revenues. Plans for 2005-06 include Commercial
Code reform; revision of the labor law; comprehensive judicial
reform; financial sector strengthening; continued civil service
reform; and improved government budget, audit, and inspection
capability.
Improving trade imbalance. In 2004 Mozambique exported $1.26
billion worth of goods and imported $1.4 billion. The ratio of
exports to imports has increased significantly from the immediate-postwar
years, when it was 1 to 4. Support programs provided by foreign
donors and private financing of foreign direct investment mega-projects
and their associated raw materials have largely compensated for
balance-of-payment shortfalls. The medium-term outlook for exports
is encouraging, as a number of recent foreign investment projects
have improved the trade balance. This export growth is expected
to continue. MOZAL I, a large aluminum smelter that commenced
production in mid-2000, greatly expanded Mozambique’s trade
volume. In April 2001, the IFC approved financing assistance for
MOZAL II, which doubled overall production capacity. Phase two
went online in April 2003, five months ahead of schedule, using
primarily Mozambican workers during construction. Traditional
Mozambican exports include cashews, shrimp, fish, copra, sugar,
cotton, tea and citrus and exotic fruits. Most of these industries
are being rehabilitated. In addition, Mozambique is less dependent
upon imports for basic food and manufactured goods as the result
of steady increases in local production.
SADC trade protocol. In December 1999, the Mozambican Council
of Ministers approved the southern African Development Community
(SADC) Trade Protocol. The Protocol will create a free trade zone
among more than 200 million consumers in the SADC region. Implementation
of the Protocol began in 2002 and has an overall zero-tariff target
set for 2008, however Mozambique’s country-specific zero-tariff
goal is currently 2015. Mozambique joined the WTO on August 26,
1995.
FOREIGN RELATIONS
While allegiances dating back to the liberation struggle remain
relevant, Mozambique's foreign policy has become increasingly
pragmatic. The twin pillars of Mozambique's foreign policy are
maintenance of good relations with its neighbors and maintenance
and expansion of ties to development partners.
During the 1970s and early 1980s, Mozambique's foreign policy
was inextricably linked to the struggles for majority rule in
Rhodesia and South Africa as well as superpower competition and
the Cold War. Mozambique's decision to enforce UN sanctions against
Rhodesia and deny that country access to the sea led Ian Smith's
regime to undertake overt and covert actions to destabilize the
country. Although the change of government in Zimbabwe in 1980
removed this threat, the apartheid regime in South Africa continued
to finance the destabilization of Mozambique.
The 1984 Nkomati Accord, while failing in its goal of ending
South African support to RENAMO, opened initial diplomatic contacts
between the Mozambican and South African governments. This process
gained momentum with South Africa's elimination of apartheid,
which culminated in the establishment of full diplomatic relations
in October 1993. While relations with neighboring Zimbabwe, Malawi,
Zambia, and Tanzania show occasional strains, Mozambique's ties
to these countries remain strong.
In the years immediately following its independence, Mozambique
benefited from considerable assistance from some western countries,
notably the Scandinavians. Moscow and its allies, however, became
Mozambique's primary economic, military, and political supporters
and its foreign policy reflected this linkage. This began to change
in 1983; in 1984 Mozambique joined the World Bank and International
Monetary Fund. Western aid quickly replaced Soviet support, with
the Scandinavians, the United States, the Netherlands, and the
European Union becoming increasingly important sources of development
assistance. Italy also maintains a profile in Mozambique as a
result of its key role during the peace process. Relations with
Portugal, the former colonial power, are complex and of some importance
as Portuguese investors play a visible role in Mozambique's economy.
Mozambique is a member of the Non-Aligned Movement and ranks
among the moderate members of the African Bloc in the United Nations
and other international organizations. Mozambique also belongs
to the Organization of African Unity/African Union and the Southern
African Development Community. In 1994, the Government became
a full member of the Organization of the Islamic Conference, in
part to broaden its base of international support but also to
please the country's sizeable Muslim population. Similarly, in
early 1996 Mozambique joined its Anglophone neighbors in the Commonwealth.
In the same year, Mozambique became a founding member and the
first President of the Community of Portuguese Language Countries
(CPLP), and maintains close ties with other Lusophone states.
U.S.-MOZAMBICAN RELATIONS
Relations between the United States and Mozambique are good and
steadily improving. This state of comity, spurred by the end of
the superpower confrontation on the continent, South Africa's
democratic transition, and Mozambique's own internal changes,
bodes well for continued strong ties. By 1993, U.S. aid to Mozambique
was prominent, due in part to significant emergency food assistance
in the wake of the 1991-93 southern African drought, but more
importantly in support of the peace and reconciliation process.
During the process leading up to elections in October 1994, the
United State s served as a significant financier and member of
the most important commissions established to monitor implementation
of the Rome General Peace Accords. The United States is one of
the largest bilateral donors to the country and plays a leading
role in donor efforts to assist Mozambique with its ongoing economic
and political transitions.
The U.S. Embassy opened in Maputo on November 8, 1975, and the
first American ambassador arrived in March 1976. In that same
year, the United States extended a $10 million grant to the Government
of Mozambique to help compensate for the economic costs of enforcing
sanctions against Rhodesia. In 1977, however, largely motivated
by a concern with human rights violations, the U.S. Congress prohibited
the provision of development aid to Mozambique without a presidential
certification that such aid would be in the foreign policy interests
of the United States. Relations hit a nadir in March 1981, when
the Government of Mozambique expelled four members of the U.S.
Embassy staff. In response, the United States suspended plans
to provide development aid and to name a new ambassador to Mozambique.
Relations between the two countries languished in a climate of
stagnation and mutual suspicion.
Contacts between the two countries continued in the early 1980s
as part of the U.S. administration's conflict resolution efforts
in the region. In late 1983, a new U.S. ambassador arrived in
Maputo, and the first Mozambican envoy to the United States arrived
in Washington, signaling a thaw in the bilateral relationship.
The United States subsequently responded to Mozambique's economic
reform and drift away from Moscow's embrace by initiating an aid
program in 1984. President Samora Machel paid a symbolically important
official working visit to the United States in 1985, where he
met President Reagan. After that meeting, a full USAID mission
was established, and significant assistance for economic reform
efforts began. President Chissano met with President Bush in September
2003; previously, he had met with Presidents Reagan (October 1987),
Bush (March 1990), and Clinton (November 1998), and also with
Secretaries of State Powell (February 2002) and Baker (July 1992).
Since taking office in February 2005, President Guebuza has visited
the United States on four occasions. In June 2005, President Guebuza
visited Washington DC to take part in President Bush’s mini-summit
on Africa, along with the leaders of Ghana, Namibia, Botswana
and Niger. Later that month, he attended the Corporate Council
on Africa (CCA) Business Summit in Baltimore. President Guebuza
returned in September 2005 for the UNGA in New York and in December
2005 attended the Fourth Development Cooperation Forum at the
Carter Center in Atlanta.
Principal U.S. Embassy Officials
Ambassador--Helen La Lime
Deputy Chief of Mission--James Dudley
USAID Mission Director--Jay Knott
USAID Deputy Mission Director--Donna Stauffer
Public Affairs Officer--Greg Garland
Defense Attaché--Major Dan Jones
Peace Corps Director--David Bellama
Centers for Disease Control Director--Alfredo Vergara
Management Officer--John Kowalski
Regional Security Officer--Karen Lass
Economic/Political Section Chief--John Wysham
Consular Officer--Leyla Ones
The U.S. Embassy is located at 193 Avenida Kenneth Kaunda; P.O.
Box 783; tel: (258-21) 49-27-97, after hours (258-21) 49-07-23;
fax: (258-21) 49-01-14. USAID Mission: Av. 25 de Setembro (Predio
JAT); tel: (258-21) 352-000, after hours (258-21) 49-16-77; fax:
(258-21) 352-100. The Public Affairs Office/Martin Luther King
Library: 542 Avenida Mao Tse Tung; tel: (258-21) 49-19-16; fax:
(258-21) 49-19-18.
Security Information
The security situation in Mozambique requires caution. Street
crime and carjackings in urban areas occur frequently. Road travel
can be hazardous and should not be undertaken after daylight hours.
The abundance of weapons remaining from the country's civil war
and police who are poorly trained, equipped, and motivated contribute
to a serious crime situation.
Additionally, several hundred thousand mines were planted throughout
Mozambique during the last three decades of conflict, and while
mine clearing operations are currently underway, surface travel
off main highways should be approached with caution.
Before visiting Mozambique, consult the Consular Information
Sheet. Visit the Consular Section of the embassy after arrival
for security updates and to register.
TRAVEL AND BUSINESS INFORMATION
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see "Principal Government Officials" listing in this
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