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Mozambique
Working together to emerge from crisis
When Mozambique's civil war ended in 1992, the political and economic situation began to improve continuously, albeit very moderately.
In 2015, however, the situation began to worsen again and the country is currently mired in crisis and facing deepseated challenges. Opposing political sides are engaged in frequently violent conflict, the country is in dire economic straits and there is widespread corruption and high public debt.
What is more, Mozambique has been repeatedly hit by extreme weather events such as flooding, drought and cyclones. In 2016, the El Niño phenomenon inflicted on the country the worst drought in decades. Experts predict that Mozambique will be badly hit by climate change.
Extreme poverty
Despite significant overall economic growth between 1992 and 2015, Mozambique remains one of the poorest countries in the world. World Bank figures show 46 per cent of the population living below the national poverty line. Around 30 per cent of the population are undernourished and life expectancy is just 58 (in Germany it is 81).
Mozambique currently ranks 180th out of 189 countries on the Human Development Index (HDI).
Development cooperation
The main aim of German development cooperation with Mozambique is to support the country in its efforts to reduce poverty. The focus is on sustainable economic development that benefits the entire population. One major aspect is providing access to education and training and job prospects for all young people. It is also important to ensure that citizens gain trust in public institutions and can access public services.
Germany is working with Mozambique on three priority areas: basic and vocational education, sustainable economic development, and decentralisation and public finance.
It is also supporting efforts to improve Mozambique's energy supply, help it to adapt to climate change and conserve natural resources.
Scroll down to get detailed information about the situation in Mozambique and Germany's development engagement in the country.
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Difficult transition to democracy
Independence, when it came to Mozambique, got off to a difficult start. Following centuries of colonial rule under the Portuguese, the liberation movement known as FRELIMO (Frente de Libertação de Moçambique) fought for independence and eventually won it for the country in 1975. Mozambique became a socialist people’s republic, governed by FRELIMO under a single-party system. The RENAMO rebel movement (Resistência Nacional Moçambicana) fought against this regime in a civil war that lasted 16 years. More than one million people lost their lives in the conflict and one third of the population were forced to flee their homes. By the time the two warring parties signed a peace agreement in 1992, most of the country lay in ruins.
Democratisation
Mozambique has been holding democratic elections since 1994 and the country has taken major steps towards democracy. Elections have, however, been regular marred by irregularities and overshadowed in recent years by assassination attempts on opposition figures. This compromises the democratic legitimacy of the parliament and the government.
The country is presently facing a political crisis, although there is a good chance of a peaceful resolution being found soon. RENAMO, which has become established as the main opposition party, is demanding that FRELIMO, which has been in government since independence, share some of its political power, particularly at the level of the provinces. Senior figures on both sides have been assassinated and there have been localised armed conflicts, resulting in hundreds of deaths, between government forces and the armed wing of RENAMO. Efforts began to mediate between the two sides in the summer of 2016. The ceasefire that began at the end of that year continues to hold and peace talks are ongoing. In 2018, the country took major steps towards achieving lasting peace with the signing of declarations of intent on decentralisation and on demobilisation and reintegration of former RENAMO combatants.
Corruption
Although the government stresses the importance of fighting corruption, little progress has been made. The non-governmental organisation Transparency International placed Mozambique 153rd out of 180 countries in its 2017 rankings.
Great challenges, good progress
Poverty is rife in Mozambique. Gross national income per capita is just 420 US dollars (2017 figures). Annual population growth stands at around three per cent.
This means that, although the percentage of people living in poverty has fallen, the absolute number of poor people has remained as high as before. Over twelve per cent of those aged between 15 and 49 are HIV-positive.
Around 45 per cent of the population are below the age of 15. It is a challenge the education system is ill-equipped to meet. World Bank figures show that only 48 per cent of children completed primary school in 2015. Child mortality is high. Of 1,000 newborn children, 72 die before they reach the age of five.
Initial successes
The international community is engaged in development cooperation with Mozambique and, since 2000, has achieved success in a number of areas. Germany has played an important role in that. School enrolment has increased from 55 to nearly 90 per cent, life expectancy rose between 2000 and 2016 by some ten years to 58, and the proportion of people who are undernourished has fallen from 40.3 per cent (2000) to 30.5 per cent (2016).
Whilst these figures are encouraging, they show above all that great efforts are still needed to realise human rights for all in Mozambique, for example the right to food, the right to the highest attainable standard of health and the right to education.
Problems despite great potential
Between 2011 and 2014, Mozambique experienced economic growth of over seven per cent each year. Beginning in 2015, growth began to fall, reaching 3.7 per cent in 2017. The country's economic crisis deepened when it emerged in 2016 that Mozambique's government had, in contravention of the constitution, issued government guarantees to back loans totalling 1.4 billion US dollars taken out by state-owned companies between 2012 and 2014 . This sparked a crisis of confidence. International donors cut off their budget support to the government and the International Monetary Fund (IMF) suspended its aid programme. This leaves the current government with very little financial scope. The indications are, however, that the macroeconomic situation will improve in 2018 and 2019.
Economic potential
With extensive coal fields and massive gas deposits, Mozambique has enormous economic potential. It also has other natural resources, such as titanium, tantalum, graphite, rare earths, gold, diamonds and uranium, and is well placed to harness hydropower. Mozambique has large areas of arable land with good soil. It therefore has the potential to considerably increase its agricultural production. The country's position means it is well-placed to offer transport corridors for its landlocked neighbours.
However, the investment climate is poor. Mozambique offers little legal certainty and there is a lack of infrastructure, a reliable energy supply and a well-trained workforce.
The government's current programme of work focuses on increasing the productivity and competitiveness of the economy, particularly the agricultural sector, and improving the general conditions required for doing so. It plans to expand infrastructure, improve access to energy, better train the workforce and cut red tape.
Adapting to climate change, conserving resources
Climate change is set to hit Mozambique hard. Already, extreme weather events are growing in frequency. Those who depend on agriculture for their living face an increasing threat of failed rains and drought. At the same time, those living in coastal regions and on rivers are experiencing ever more frequent catastrophic flooding as storms and heavy rainfall become more common.
It is also to be feared that illegal logging and the cultivation of monocultures, such as biofuel crops, will cause major environmental degradation in Mozambique. Coal mining and the construction of major hydropower plants bring with them further environmental risks. Poaching is posing a threat to biodiversity.
Beach near Nacala, a harbour town in the north of MozambiqueCopyright© Stig Nygaard, via flickr, CC BY 2.0
Development potential
Only a fraction of Mozambique's fertile cropland is being used productively. Although 73 per cent of the population work in the agricultural sector, it generates only about 22 per cent of the country’s overall economic output. Most farmers are engaged primarily in subsistence agriculture. So far, only a few crops are being grown for export, for instance tobacco, sugar, tea, cotton and cashew nuts.
Tourism is another sector with a great deal of potential. Mozambique’s coastline stretches for over 2,700 km along the Indian Ocean and it offers a huge diversity of flora and fauna. Germany is supporting the Transfrontier Conservation Area Great Limpopo, which also offers opportunities for socially and ecologically sustainable tourism.
Mozambique also has great potential in the field of renewable energy. Renewables like solar and wind power, biomass and geothermal energy could be used to serve rural areas which currently have no real access to electric power. Germany and other donor countries are supporting Mozambique within the scope of the regional Energising Development programme, which is pushing ahead with the use of renewable energy at local level.
Vegetable cultivation in MozambiqueCopyright© GlobalHort Image Library/Imagetheque, via flickr, CC BY-NC 2.0
German development cooperation with Mozambique
Germany and Mozambique have been cooperating since 1977 in the field of development. Cooperation is focused on the goals set out in the Marshall Plan with Africa and the African Union's Agenda 2063.
The overarching aim is long-term poverty reduction. Cooperation therefore concentrates on the major obstacles to Mozambique's development. These are the very poor quality of basic education and vocational training and the poor environment for private sector activity. Geographically, cooperation concentrates on the provinces of Inhambane and Sofala.
At government negotiations held in Berlin in October 2018, the German government pledged 90.4 million euros for development cooperation with Mozambique. Of this amount, 59.7 million euros will be made available for financial cooperation projects and 30.7 million euros for technical cooperation projects. In 2017, 24 million euros had been pledged for financial cooperation.
The two countries' cooperation focuses on the following priority areas:
- basic and vocational education
- decentralisation and public finance
- sustainable economic development.
Other important areas of cooperation include conserving natural resources such as biodiversity, improving the supply of sustainably generated energy and adapting to climate change.
As part of its 'One World – No Hunger' initiative, the BMZ is also supporting Mozambique through a Green Innovation Centre, which promotes innovation in the agricultural and food sector. The aim of the centre is to increase the productivity of small farms in a sustainable way and boost small farmers' income, to create new jobs in rural areas and to improve local food supply.
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Basic and vocational education
Training teachers, building classrooms
The BMZ is supporting the government of Mozambique in implementing its Education Strategic Plan. Germany is working closely with other international donors to fund, for example, the building of classrooms and improvements to teacher training.
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Decentralisation and public finance
Making public authorities more efficient
The aim of Germany's commitment is to ensure that national, regional and local administrative units apply the principles of good financial governance and that the quality of government services improves, particularly at the local level.
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Sustainable economic development
Promoting micro, small and medium-sized enterprises
The BMZ supports the Mozambican government in improving the legal, political and institutional framework conditions for micro, small and medium-sized enterprises. In particular, economic cycles in rural areas are strengthened.
Training teachers, building classrooms
Education is vital in enabling people to improve their own economic prospects. Yet Mozambique – a country in which 45 per cent of the population are below the age of 15 – lacks sufficient schools and teaching materials. There are 55 primary school children for every one teacher. Most teachers themselves do not have adequate training, are paid too little and live and work in difficult conditions. As a result, less than half of all children complete primary school. Similar problems plague the vocational training sector.
What Germany is doing
The BMZ is supporting the government of Mozambique in implementing its Education Strategic Plan. Germany is working closely with other international donors to fund, for example, the building of classrooms and improvements to teacher training.
Germany is also supporting Mozambique in its efforts to reform the vocational education sector to better meet the needs of the labour market. The emphasis is on better equipping schools, providing better initial and in-service training to teachers at vocational schools, making training more hands-on and introducing training courses in the metalworking and electrical sectors.
What has been achieved so far
Development cooperation in the education sector has already produced results:
- school enrolment has almost doubled since 2000 and is now 90 per cent;
- ninety per cent of Mozambique's 100,000 primary school teachers have now received training (in 2005, only 40 per cent were trained);
- an annual 1,800 young people are attending vocational training schools, 33 per cent of them girls;
- approximately 180 teacher trainers are trained each year, which indirectly benefits around 2,000 prospective teachers;
- Germany has joined forces with other donors to fund the building of more than 5,500 schools.
Making public authorities more efficient
Mozambique's population is distributed sparsely across a large territory. It is therefore difficult for government institutions to maintain a presence at local level and deliver public services. The government of Mozambique has launched a process of decentralisation, whereby responsibility is devolved to districts and local authorities. These local administrative units are not, however, yet capable of operating to a sufficiently high standard. Shortcomings are particularly evident in the field of financial management.
What Germany is doing
The aim of German development cooperation in this field is to support national, regional and local administrative units in applying the principles of good financial governance and to improve the quality of public services, particularly at local level. This means building capacities in the administrative units and boosting local authorities' own financial resources.
In order to increase transparency and prevent corruption, Germany is also supporting efforts to improve external auditing and internal financial and administrative controls. The court of auditors has, for instance, already been supported in conducting 5,000 audits. Also, 2,800 district officials and 600 local authority staff (30 per cent of them women) have received training in public finance, procurement and project management.
In selected local authorities, Germany is helping to establish and improve the social and economic infrastructure. Germany is also supporting efforts to help the country adapt to the impact of climate change.
Transparency in the extractive industries
With increasing money being invested in the extractive sector, the government of Mozambique faces the challenge of administering extractive revenues in a transparent way and using them to promote inclusive growth and poverty reduction. In 2010, it therefore joined the Extractive Industries Transparency Initiative (EITI). In 2012 it was recognised by EITI as a compliant country.
Through its development cooperation, Germany is advising the Ministry of Mineral Resources and Energy and also districts and local authorities in mining areas on improving management of the extractive sector.
The 2017 annual report of the Mozambican Court of Audit contained, for the first time, a special chapter on the extractive industry, which shows the origin and amount of parts of the revenues. All contracts relating to the extractive industries or complex public works projects such as roads or airports are audited by the Court in accordance with newly developed procedures.
Promoting micro, small and medium-sized enterprises
Every year 300,000 young people come onto the labour market in Mozambique. Very few of them find work in the formal sector. If the country is to achieve sustainable and inclusive economic growth and create more jobs in the formal sector, it needs to give a boost to micro, small and medium-sized enterprises (MSMEs).
Germany is assisting the Mozambican government in improving the legal, political and institutional environment for MSMEs. One particular aim is to boost the rural economy. Among other things, German experts are advising the responsible department, the Ministry of Industry and Commerce, on formulating a detailed reform strategy and implementing reforms at provincial level. The simplification of licensing procedures, for example, has paved the way for 40,000 new business start-ups.
Cooperation with the private sector
As part of what are known as "development partnerships", Germany's development cooperation institutions are working directly with selected businesses, combining the innovative force of the private sector with the resources, expertise and experience of those institutions. The particular focus is on value chains in the agricultural sector (see also Green Innovation Centre Mozambique). To date, 24 development partnerships have been established, enabling eight million euros of private capital to be mobilised.
Access to loans for micro entrepreneurs
Germany is also supporting efforts to improve the financial system, for instance through the introduction of a deposit insurance fund. Often, MSMEs cannot access financing for the tools and machinery that would enable them to expand their businesses because no suitable products exist.
The aim is to get private banks to offer appropriate loans and financial products in particular for micro and small enterprises in rural areas. Since very few bank branches exist in rural areas, Germany is also promoting innovative ways of selling these financial products. In this area, too, progress has been made. A total of 30,000 MSMEs have now been integrated into the financial system. Over 65 per cent of them are managed by women.
Map of Mozambique
Development facts and figures
General information
| ratio | Mozambique | Data for Germany |
|---|---|---|
| Country name new window Definition and sourcea16180138 | Republic of Mozambique | Federal Republic of Germany |
| Capital new window Definition and sourcea16180110 | Maputo, approximately 1.6 million inhabitants | Berlin, 3.75 million inhabitants |
| Surface area new window Definition and sourcea16180096 | 786,380 sq km (2018) | 357,580 sq km (2018) |
| Ranking Human Development Index (HDI) new window Definition and sourcea16180124 | 180 of 189 (2019) | 4 of 189 (2018) |
Development funding
Population data
Poverty
Economy
Communication
Education
Health
Environment
Surface area
Surface area is a country's total area, including areas under inland bodies of water and some coastal waterways.
Ranking Human Development Index (HDI)
The United Nations Development Programme (UNDP) publishes a Human Development Report once a year. The Human Development Index (HDI) contained in the Report records average figures for a country in fundamentally important fields of human development. These include, for example, life expectancy at birth, level of education and per capita income. From a large number of such individual indicators a ranking is calculated. Using this ranking it is possible to establish the average development status of a particular country.
Country name
Population living in rural areas (% of total)
Rural population refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.
Population growth rate
Life expectancy
Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life.
Population ages 65 and above (% of total)
Population ages 0-14 (% of total)
Volume of German development cooperation
Funds for development cooperation (Technical and Financial Cooperation) committed by the Federal Republic of Germany under intergovernmental agreements.
Total amount of ODA received
Net official development assistance (ODA) consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent). Data are in current U.S. dollars.
Amount of ODA received per capita
Net official development assistance (ODA) per capita consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients; and is calculated by dividing net ODA received by the midyear population estimate. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent). Data are in current U.S. dollars.
Undernutrition
Population below minimum level of dietary energy consumption (also referred to as prevalence of undernourishment) shows the percentage of the population whose food intake is insufficient to meet dietary energy requirements continuously. Data showing as 2.5 signifies a prevalence of undernourishment below 2.5%.
Population living below the national poverty line (% of total)
National poverty rate is the percentage of the population living below the national poverty line. National estimates are based on population-weighted subgroup estimates from household surveys.
Population living in absolute poverty (% of total)
The percentage of the population living on less than 1.90 US dollars a day at 2011 international prices. The World Bank last changed the definition of this poverty line in October 2015. Previously, it was defined as the percentage of the population living on less than 1.25 US dollars a day at 2005 international prices. Five countries (Bangladesh, Cambodia, Cape Verde, Jordan and Laos) still use this older definition.
Children who complete primary school (% of total)
Primary completion rate is the percentage of students completing the last year of primary school. It is calculated by taking the total number of students in the last grade of primary school, minus the number of repeaters in that grade, divided by the total number of children of official graduation age.
When using this method of calculation the result may be greater than 100 per cent for some countries. This just means that the number of children completing their primary school education in that particular school year was higher than the number of children who were of official school leaving age.
Proportion of school age children attending primary school
Net enrollment ratio is the ratio of children of official school age based on the International Standard Classification of Education 1997 who are enrolled in school to the population of the corresponding official school age. Primary education provides children with basic reading, writing, and mathematics skills along with an elementary understanding of such subjects as history, geography, natural science, social science, art, and music.
Literacy rate
Adult literacy rate is the percentage of people ages 15 and above who can, with understanding, read and write a short, simple statement on their everyday life.
Public spending on education
Public expenditure on education consists of current and capital public expenditure on education includes government spending on educational institutions (both public and private), education administration as well as subsidies for private entities (students/households and other privates entities).
Number of pupils per teacher at primary school level
Primary school pupil-teacher ratio is the number of pupils enrolled in primary school divided by the number of primary school teachers (regardless of their teaching assignment).
Percentage of the population with sustainable access to safe drinking water
Access to an improved water source refers to the percentage of the population with reasonable access to an adequate amount of water from an improved source, such as a household connection, public standpipe, borehole, protected well or spring, and rainwater collection. Unimproved sources include vendors, tanker trucks, and unprotected wells and springs. Reasonable access is defined as the availability of at least 20 liters a person a day from a source within one kilometer of the dwelling.
Immunization, diphtheria, pertussis, and tetanus (DPT) (% of children ages 12-23 months)
Child immunization measures the percentage of children ages 12-23 months who received vaccinations before 12 months or at any time before the survey. A child is considered adequately immunized against diphtheria, pertussis (or whooping cough), and tetanus (DPT) after receiving three doses of vaccine.
Improved sanitation facilities (% of population with access)
Access to an improved water source refers to the percentage of the population with reasonable access to an adequate amount of water from an improved source, such as a household connection, public standpipe, borehole, protected well or spring, and rainwater collection. Unimproved sources include vendors, tanker trucks, and unprotected wells and springs. Reasonable access is defined as the availability of at least 20 liters a person a day from a source within one kilometer of the dwelling.
People using safely managed sanitation services (% of population)
The percentage of people using improved sanitation facilities that are not shared with other households and where excreta are safely disposed of in situ or transported and treated offsite. Improved sanitation facilities include flush/pour flush to piped sewer systems, septic tanks or pit latrines: ventilated improved pit latrines, compositing toilets or pit latrines with slabs.
Births attended by skilled health staff (% of total)
Births attended by skilled health staff are the percentage of deliveries attended by personnel trained to give the necessary supervision, care, and advice to women during pregnancy, labor, and the postpartum period; to conduct deliveries on their own; and to care for newborns.
Pregnant women receiving prenatal care (%)
Pregnant women receiving prenatal care are the percentage of women attended at least once during pregnancy by skilled health personnel for reasons related to pregnancy.
Under-five mortality rate (per 1,000 live births)
Under-five mortality rate is the probability per 1,000 that a newborn baby will die before reaching age five, if subject to current age-specific mortality rates.
Number of mothers who die during pregnancy or childbirth (per 100,000 live births)
Maternal mortality ratio is the number of women who die during pregnancy and childbirth, per 100,000 live births. The data are estimated with a regression model using information on fertility, birth attendants, and HIV prevalence.
HIV/AIDS prevalence among the 15-49 age group
Prevalence of HIV refers to the percentage of people ages 15-49 who are infected with HIV.
Domestic general government health expenditure (% of GDP)
Public expenditure on health from domestic sources as a share of the economy as measured by GDP.
People using safely managed drinking water services (% of population)
The percentage of people using drinking water from an improved source that is accessible on premises, available when needed and free from faecal and priority chemical contamination. Improved water sources include piped water, boreholes or tubewells, protected dug wells, protected springs, and packaged or delivered water.
Roads, paved (% of total roads)
Paved roads are those surfaced with crushed stone (macadam) and hydrocarbon binder or bituminized agents, with concrete, or with cobblestones, as a percentage of all the country's roads, measured in length.
Individuals using the Internet (% of population)
Internet users are individuals who have used the Internet (from any location) in the last 3 months. The Internet can be used via a computer, mobile phone, personal digital assistant, games machine, digital TV etc.
Passenger cars (per 1,000 people)
Passenger cars refer to road motor vehicles, other than two-wheelers, intended for the carriage of passengers and designed to seat no more than nine people (including the driver).
Mobile cellular subscriptions (per 100 people)
Mobile cellular telephone subscriptions are subscriptions to a public mobile telephone service using cellular technology, which provide access to the public switched telephone network. Post-paid and prepaid subscriptions are included.
Land under cultivation (% of total land area)
Agricultural land refers to the share of land area that is arable, under permanent crops, and under permanent pastures. Arable land includes land defined by the FAO as land under temporary crops (double-cropped areas are counted once), temporary meadows for mowing or for pasture, land under market or kitchen gardens, and land temporarily fallow. Land abandoned as a result of shifting cultivation is excluded. Land under permanent crops is land cultivated with crops that occupy the land for long periods and need not be replanted after each harvest, such as cocoa, coffee, and rubber. This category includes land under flowering shrubs, fruit trees, nut trees, and vines, but excludes land under trees grown for wood or timber. Permanent pasture is land used for five or more years for forage, including natural and cultivated crops.
Land classified as conservation areas (% of total land area)
Terrestrial protected areas are those officially documented by national authorities.
Forested land (% of total land area)
Forest area is land under natural or planted stands of trees of at least 5 meters in situ, whether productive or not, and excludes tree stands in agricultural production systems (for example, in fruit plantations and agroforestry systems) and trees in urban parks and gardens.
Level of carbon emissions per capita (in tons)
Carbon dioxide emissions are those stemming from the burning of fossil fuels and the manufacture of cement. They include carbon dioxide produced during consumption of solid, liquid, and gas fuels and gas flaring.
Power consumption per inhabitant
Electric power consumption measures the production of power plants and combined heat and power plants less transmission, distribution, and transformation losses and own use by heat and power plants.
Jobs in agriculture (% of total)
Employees are people who work for a public or private employer and receive remuneration in wages, salary, commission, tips, piece rates, or pay in kind. Agriculture corresponds to division 1 (ISIC revision 2) or tabulation categories A and B (ISIC revision 3) and includes hunting, forestry, and fishing.
Energy imports (% of total energy consumption)
Net energy imports are estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.
Child labour (% of children aged 7 to 14)
Economically active children refer to children involved in economic activity for at least one hour in the reference week of the survey.
Unemployment rate
Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Definitions of labor force and unemployment differ by country.
Foreign direct investment, net inflows (BoP, current US$)
Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors. Data are in current U.S. Dollars.
Total foreign debt
Total external debt is debt owed to non-residents repayable in foreign currency, goods, or services. Total external debt is the sum of public, publicly guaranteed, and private nonguaranteed long-term debt, use of IMF credit, and short-term debt. Short-term debt includes all debt having an original maturity of one year or less and interest in arrears on long-term debt. Data are in current U.S. dollars.
GNI (current US$)
GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in current U.S. dollars. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States.
GNI per capita (current US$)
GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States.
Exports of goods and services (% of GDP)
Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.
Imports of goods and services (% of GDP)
Imports of goods and services represent the value of all goods and other market services received from the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.
Inflation
Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used.
Debt service as percentage of exports of goods and services and net income from abroad
Total debt service is the sum of principal repayments and interest actually paid in foreign currency, goods, or services on long-term debt, interest paid on short-term debt, and repayments (repurchases and charges) to the IMF. Exports of goods and services includes income and workers' remittances.
Industry, value added (% of GDP)
Industry corresponds to ISIC divisions 10-45 and includes manufacturing (ISIC divisions 15-37). It comprises value added in mining, manufacturing (also reported as a separate subgroup), construction, electricity, water, and gas. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3.
Agriculture, value added (% of GDP)
Agriculture corresponds to ISIC divisions 1-5 and includes forestry, hunting, and fishing, as well as cultivation of crops and livestock production. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3.
Services, value added (% of GDP)
Services correspond to ISIC divisions 50-99 and they include value added in wholesale and retail trade (including hotels and restaurants), transport, and government, financial, professional, and personal services such as education, health care, and real estate services. Also included are imputed bank service charges, import duties, and any statistical discrepancies noted by national compilers as well as discrepancies arising from rescaling. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The industrial origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3 or 4.
GDP growth (annual %)
Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2000 U.S. dollars. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources
Further information
A selection of links with further development-related background information on Mozambique
