Capital
Maputo

GEOGRAPHICAL LOCATION
Mozambique is located in southeastern Africa bordered on the east by the Mozambique Channel in the Indian Ocean.

The country shares land borders with South Africa and Swaziland in the south; Malawi, Zambia, and Zimbabwe in the west; and Tanzania in the north.

Climate
Mozambique has a hot, rainy season from November to March, and a cool, dry winter season from July to September.

Natural resources
The country's mineral wealth has not been determined fully; however, titanium and natural-gas deposits are being developed by foreign investors. The country still has considerable untapped hydroelectric potential. Natural gas has also been founding commercial quantities and exploitation, mainly for export, is under way.

In addition, Mozambique with a 2,500 km coastline, has a significant marine resources, and prawns were the country’s main export until the development of the aluminum industry. Mineral resources are also abundant (including reserves of gold, gemstone, titanium, coal and bauxite), although there has been little significant development to date.

Economy
Mozambique is one of Africa’s success stories and is making economic progress, although the country is still dependant on foreign assistance.

The economy was reformed by the elimination of subsidies and quantitative restrictions on imports, the reduction and simplification of import tariffs and the liberalization of crop marketing.

A major privatization program involving the entire banking sector and state manufacturing companies is another active step in economic reform.

Mozambique has the natural resources to sustain the development of the agriculture, forestry, fishing, energy and tourism industries. Placed in an ideal trading location, increased exports in these areas will increase the amount of foreign exchange brought into the country. The country’s proximity to South Africa has resulted in a range of major projects that support continued high levels of growth. The country's major exports are agricultural products, coal and energy.

Mozambique has an agriculturally based economy. Industrial development has been slow as a result of the civil war that destroyed the transport system and other infrastructure.

Mozambique has considerable mineral resources despite limited exploitation. The country’s oil and gas industry also has potential. Electricity is provided by the parastatal utility, Electricidade de Mozambique (EDM). The country exports electricity to South Africa from the Cabora Bassa hydro-electric facility.

Indicators such as inflation, which continues to decline, show that the country’s economy is likely to continue on its successful growth path.

The economy is also reliant on foreign aid. It is a member of the Community of Portuguese Language Countries and the Commonwealth of Nations. Mozambique is also a member of the Southern African Development Community.

Industries
Mozambique's industrial sector is devoted largely to the processing of raw materials. In addition, chemical fertilizer, refined petroleum, construction materials (particularly cement), steel, aluminum, and textiles are produced.

Electricity from the giant Cabora Bassa hydroelectric project (located on the Zambezi near Tete) is exported to South Africa. A smaller hydroelectric plant is situated at Chicamba Real (near Beira) on the Revùe River.

Types: Food, Beverage, Chemicals (fertilizer, soap, paints) aluminum, petroleum products, textile, cement, glass, asbestos, tobacco.

Foreign Trade
The annual cost of Mozambique's imports is usually much higher than its earnings from foreign sales. The principal imports are machinery and equipment, motor vehicles, fuel, chemicals, metal products, food, and textiles; chief exports are aluminum, shrimp, cashews, cotton, sugar, citrus, and timber.

South Africa, the nations of Western Europe, and the United States are the country's chief trading partners. Mozambique also derives income from handling foreign trade for nearby countries.

Transportation
The transport sector has been integral to the economy since colonial times owing to the country’s strategic with respect to its landlocked neighbours. Road and rail infrastructure provides access to the sea for landlocked areas in southern Africa, such Malawi and Zimbabwe, and northern Africa, Maputo. Transhipment was a major source of economic activity during the colonial period. Public-private partnerships have been established to mobilize foreign investment in port, rail and road infrastructure.

Railways
Railways lines run from Maputo to South Africa, Swaziland and Zimbabwe and  from Beira to Zimbabwe, and from Nacala to Malawi.
Total: 3,123 km

Roadways
Total:    30,400 km
Paved: 5,685 km

Waterways
With 3,750 km, navigable routes, Mozambique have three main regional ports - Maputo, Beira and Nacala, form the hubs of important regional transport systems. All three ports have container facilities and are trying to recover from years of war and mismanagement.

Air
Scheduled services on main routes are provided by the state airline LAM – Linhas Áereas de Moçambique. International services to Maputo are provided by several airlines in the southern African region. The only direct intercontinental services to Mozambique are to Lisbon, Portugal, provided by LAM and TAP, the national Portuguese air carrier.

However, a large share intercontinental travel to and from Mozambique is directed through the far better serviced Johannesburg hub, from where there are several flights a day to Maputo.

There are 5 internationals airports: Maputo, Beira, Nampula, Pemba and Vilanculos.

Agriculture and Fishing
Mozambique remains an overwhelmingly agricultural and poor country, however, with the majority of its workers engaged in traditional subsistence cultivation. The principal cash crops include cashews, sugarcane, cassava, corn, coconuts, sisal, cotton, citrus and tropical fruits, potatoes, sunflowers and tea. Cattle and goats are raised, but their numbers are kept low by the “tsetse fly”.

There are forestry and fishing industries, including shrimp.The fishing industry was the country’s largest export earner before of the advent of aluminium, with prawns typically accounting for 30-40% of export earnings.

Tourism
Tourism could became a significant earner of foreign exchange for Mozambique in the medium term. The objective of the government’s national tourism strategy is to promote high value, low-volume tourism based on wildlife parks and beach resorts.

According to the Ministry of Tourism, the number increased from 150,000 in 1995 to an estimated 450,000 in 2003, an average growth rate of 15% per year.

Foreign Investment
Among the large investment projects within the infrastructure sector currently going on in Mozambique is the Beira Railway Project. The Beira railway connects the central Mozambican port city Beira with the Southern African railroad network through the Zambezi River Valley and Zimbabwe. The ongoing project is upgrading this historic connection to make efficient passenger and freight transport available in the Zambezi Valley, accelerate economic growth in the sub-region and increase international traffic.

Other large international investment projects are connected to the industrialization of Mozambique, which offers among the cheapest labour of the region. This includes the giant Mozal aluminium smelter close to the capital, Maputo, which is to produce 250,000 tonnes of aluminium annually using power imported from South Africa. Further, it includes the development of Mozambican natural gas fields, the construction of a central processing facility and an 865 km cross-border gas pipeline from Mozambique to South Africa.

Apart from large-scale investments in infrastructure and industry, Mozambique is currently receiving a large number of smaller investments in its booming tourism sector. South Africans have already discovered the tourism potential in their neighbour country and Mozambique is being prepared to receive growing numbers of intercontinental tourist within few years. This in particular includes the region close to Maputo and Cabo Delgado in the far north.

Annual Indicators

Foreign Trade

Mainland china-Mozambique Bilateral Trade (USD 10,000)

Source:
BBC News country Profile - Mozambique
China Statistical Yearbook 2006
The Economic Intelligence Unit – Country Profile/ Country Report
The Economic Services of the Macao SAR Government
Macau Statistics and Census Department
Ministério de Turismo de Moçambique
Portal do Governo de Moçambique
The World Bank homepage
The World Economic Factbook 2005/2006
The World Factbook www.cia.gov
http://en.wikipedia.org