Mozambique
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About
Mozambique
Mozambique
Population: 18,811,731 (July 2004 est.)
Languages: Makhuwa, Tsonga, Lomwe, Sena, numerous other indigenous
languages, Portuguese (official; spoken by 27% of population
as a second language).
Capital: Maputo
Government Type: Republic
Independence Day: 25 June 1975 (from Portugal)
Legal System: Based on Portuguese civil law system and customary
law.
Currency: metical (MZM)
Executive
Branch:
Chief
of State: President Joaquim Alberto CHISSANO (since 6 November
1986); note - before being popularly elected, CHISSANO was elected
president by Frelimo's Central Committee on 4 November 1986
(reelected by the Committee 30 July 1989).
Head of Government: Prime Minister Luisa DIOGO (since 17 February
2004).
American
Embassy: Avenida Kenneth Kuanda 193, Maputo
Mailing Address: P. O. Box 783, Maputo
Telephone: [258] (1) 492797 FAX: [258] (1) 490448
General Overview: Almost five centuries as a Portuguese colony
came to a close with independence in 1975. Large-scale emigration
by whites, economic dependence on South Africa, a severe drought,
and a prolonged civil war hindered the country's development.
The ruling party formally abandoned Marxism in 1989, and a new
constitution the following year provided for multiparty elections
and a free market economy. A UN-negotiated peace agreement with
rebel forces ended the fighting in 1992. Heavy flooding in both
1999 and 2000 severely hurt the economy. Political stability
and sound economic policies have encouraged recent foreign investment.
Economic
Overview: At independence in 1975, Mozambique was one of the
world's poorest countries. Socialist mismanagement and a brutal
civil war from 1977-92 exacerbated the situation. In 1987, the
government embarked on a series of macroeconomic reforms designed
to stabilize the economy. These steps, combined with donor assistance
and with political stability since the multi-party elections
in 1994, have led to dramatic improvements in the country's
growth rate. Inflation was reduced to single digits during the
late 1990s although it returned to double digits in 2000-03.
Fiscal reforms, including the introduction of a value-added
tax and reform of the customs service, have improved the government's
revenue collection abilities. In spite of these gains, Mozambique
remains dependent upon foreign assistance for much of its annual
budget, and the majority of the population remains below the
poverty line. Subsistence agriculture continues to employ the
vast majority of the country's workforce. A substantial trade
imbalance persists although the opening of the MOZAL aluminum
smelter, the country's largest foreign investment project to
date has increased export earnings. Additional investment projects
in titanium extraction and processing and garment manufacturing
should further close the import/export gap. Mozambique's once
substantial foreign debt has been reduced through forgiveness
and rescheduling under the IMF's Heavily Indebted Poor Countries
(HIPC) and Enhanced HIPC initiatives, and is now at a manageable
level.
International
Disputes: None
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