Mozambique Officials Expect Economy to Grow by 7.5 Percent in 2015

According to government projections, Mozambique’s growth will come from such sectors as gas, electricity and agriculture. Authorities also aim to develop the country’s vast natural gas reserves to boost economic performance.

Authorities hope to repeat their record of 7.5-percent growth in 2014. The country’s GDP growth has been a consistent 7.4 percent throughout the decades, attributable to such factors as foreign investment and donor funds. Growth for 2015 would be a positive outcome for a country that suffered years of civil war.

According to government projections, Mozambique’s growth will come from such sectors as gas, electricity and agriculture. Authorities also aim to develop the country’s vast natural gas reserves to boost economic performance.

Authorities hope to repeat their record of 7.5-percent growth in 2014. The country’s GDP growth has been a consistent 7.4 percent throughout the decades, attributable to such factors as foreign investment and donor funds. Growth for 2015 would be a positive outcome for a country that suffered years of civil war.

Poverty Reduction

Mozambique has undergone decades of economic and political stabilization that led to a decrease in the nation’s poverty rate. Income per capita expanded 36 percent from 1997 to 2003, and poverty lowered by 14 percent. However, poverty levels have not improved in the past decade, only lowering to 4.0 percent from 2003 to 2009, and poverty remains a problem throughout the country. Some progress has been made in southern Mozambique, which is the largely the result of urban growth. Mozambique offers more low-skilled jobs in the agriculture sector, but there are not enough upscale jobs to sustain the 300,000 new workers entering the labor pool each year. Mozambique is also rich in natural gas and coal, but the energy industry may take years to add the necessary jobs to lift more people out of poverty.

Natural Resources

Mozambique commenced numerous energy projects that made little impact on the nation’s overall economic output. Officials also need to find ways to interweave the economy with the energy sector and maximize the country’s natural gas potential to benefit the economy. Mozambique burns down hardwood forests to make coal, but forest devastation not only impacts the lives of other citizens, but also has environmental implications. However, numerous conservation projects are underway, such as the Mezimbite Forest Center, which not only plants more trees, but also uses the country’s natural resources to make products for sale at local and international levels.

Areas of Improvement

Mozambique needs to address water infrastructure and basic sanitation to prevent the spread of diseases. Malaria continues to be a main cause of death, and malnutrition stemming from poverty is a primary reason why adult life expectancy from birth is 50.3 years. Adult literacy remains at 56 percent, but the education system has improved overall. The southern African nation is an emerging market that has made significant gains over the past few decades, but it needs more development before the nation can attract further investment and surpass economic goals.