TRALAC - Trade Law Centre

Mozambique: Politics, Economy, and US Relations

Mozambique, a significant recipient of U.S. development assistance, is a southeastern African country nearly twice the size of California, with a population of 27.9 million people. It achieved rapid growth following a post-independence civil war (1977-1992), but faces a range of political, economic, and security challenges. These include a political scandal over state-guaranteed, allegedly corrupt bank loans received by state-owned firms, which created public debt that the government did not disclose to the International Monetary Fund (IMF). This placed the country’s relations with the IMF at risk and has had major negative repercussions for the economy, donor
relations, and Mozambique’s governance record. Other challenges include unmet development needs, a range of governance shortcomings, organized crime, an ongoing economic slump, and political conflict and violence involving both mainstream political actors and violent extremists.

Author Nicolas Cook
Organisation Congressional Research Service
Publish Date 19 July 2019

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