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Background
Mozambique, officially the Republic of Mozambique (Portuguese: Moçambique or República de Moçambique is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest. It was explored by Vasco da Gama in 1498 and colonized by Portugal in 1505. By 1510, the Portuguese had control of all of the former Arab sultanates on the east African coast. From about
1500, Portuguese trading posts and forts became regular ports of call on the new route to the east.
It is a member of the Community of Portuguese Language Countries and the Commonwealth of Nations. Mozambique (Moçambique) was named after Muça Alebique, a sultan.
Politics
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 eighteen.
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 nine 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 seven 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 five-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 thirty-three 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 twenty-eight mayoral positions and the majority in twenty-nine municipal assemblies, while RENAMO won five mayoral positions and the majority in four 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. RENAMO and some other opposition parties made claims of election fraud and denounced the result. These claims were supported by international observers (among others by the European Union Election Observation Mission to Mozambique and the Carter Center) to the elections who criticized the fact that the National Electoral Commission (CNE) did not conduct fair and transparent elections. They listed a whole range of shortcomings by the electoral authorities that benefited the ruling party FRELIMO. However, according to EU observers, the elections shortcomings have probably not affected the final result in the presidential election. On the other hand, the observers have declared that the outcome of the parliamentary election and thus the distribution of seats in the National Assembly does not reflect the will of the Mozambican people and is clearly to the disadvantage of RENAMO.
The Reporters Without Borders' Worldwide Press Freedom Index 2006 ranked Mozambique 45th out of 168 countries.
International relations
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.
In the years immediately following its independence, Mozambique benefited from considerable assistance from some western countries, notably the Scandinavians. USSR 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 countries of Sweden (EU Member since 1996), Norway, Denmark (EU Member since 1973) and Iceland. Plus Finland (EU Member since 1996) and the Netherlands within the European Union are 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, continue to play an important role 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 African Union(formerly the Organization of African Unity) 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 sizable muslim population. Similarly, in early 1996 Mozambique joined its Anglophone neighbors in the Commonwealth. It is the only nation to join the Commonwealth that was never part of the British Empire. 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.
Provinces and districts
Mozambique is divided into ten provinces (provincias) and one capital city (cidade) with provincial status. The provinces are subdivided into 129 districts (distritos). Districts are further divided in "Postos Administrativos" (Administrative Posts) and these in Localidades (Localities) the lowest geographical level of central state administration. Since 1998, 33 "Municípios" (Municipalities) have been created in Mozambique.
- Cabo Delgado
- Gaza
- Inhambane
- Manica
- Maputo (city)
- Maputo
- Nampula
- Niassa
- Sofala
- Tete
- Zambezia
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Economic overview
The official currency is the New Metical (as of 2006, 1 USD is roughly equivalent to 25 Meticals), which on January 1, 2007 replaced old Meticals in rate thousand to one. The old currency will be redeemed by the Bank of Mozambique until the end of 2012. US dollar, South African rand and recently also Euro are also widely accepted and used in business transactions. The minimum legal salary is around 60 dollars per month. Mozambique is member of the Southern African Development Community (SADC). The SADC free trade protocol is aimed at making the South African region more competitive by eliminating tariffs and other trade barriers.
Rebounding growth
The resettlement of war refugees and successful economic reform have led to a high growth rate: the average growth rate from 1993 to 1999 was 6.7%; from 1997 to 1999 it averaged more than 10% per year. The devastating floods of early 2000 slowed GDP growth to 2.1%. A full recovery was achieved with growth of 14.8% in 2001. In 2003, the growth rate was 7%. The government projects the economy to continue to expand between 7%-10% a year for the next five years, although rapid expansion in the future hinges on several major foreign investment projects, continued economic reform, and the revival of the agriculture, transportation, and tourism sectors. More than 75% of the population engages in small scale agriculture, which still suffers from inadequate infrastructure, commercial networks, and investment. However, 88% of Mozambique's arable land is still uncultivated.
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 1998-99. Economic disruptions stemming from the devastating floods of 2000 caused inflation to jump to 12.7% that year, and it was 13% in 2003. The Mozambique's currency, the Metical, devaluated by 50% to the dollar in 2001, although in late 2001 it began to stabilize. Since then, it has held steady at about 24,000 MZN to 1 U.S. dollar. New Metical replaced old Meticals in rate thousand to one on January 1, 2007 bringing the exchange rate to 25 (new) MZN to 1 USD.
Economic reforms
More than 1,200 state-owned enterprises (mostly small) have been privatized. Preparations for privatization and/or sector liberalization are underway for the remaining parastatal enterprises, including telecommunications, energy, 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 value-added tax in 1999 as part of its efforts to increase domestic revenues.
Improving trade imbalance
Imports remain almost 40% greater than exports, but this is a significant improvement over the 4:1 ratio of the immediate post-war years. In 2003, imports were $1.24 billion and exports were $910 million. 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-payments shortfalls. The medium-term outlook for exports is encouraging, since a number of foreign investment projects should lead to substantial export growth and a better trade balance. MOZAL, a large aluminum smelter that commenced production in mid-2000, has greatly expanded the nation's trade volume. Traditional Mozambican exports include cashews, shrimp, fish, copra, sugar, cotton, tea, and citrus fruits. Most of these industries are being rehabilitated. As well, Mozambique is less dependent on imports for basic food and manufactured goods because of steady increases in local production.
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