24 •
The Lion King
• April - June 2017
went through a delicate transition as
Joaquim CHISSANO stepped down
after 18 years in office. His elected
successor, Armando Emilio GUEBUZA
continued the economic policies that
have encouraged the inflow of foreign
investments and economic growth in
the country. In 2014, the current Head
of State, President Filipe Jacinto Nyusi
was elected.
Economy
Mozambique was one of Africa’s suc-
cess stories with one of the strongest
economic performances until 2015
with large investment projects being
implemented in mining, electric power
and infra-structure.
Mozambique’s GDP in 2016 was $36.92
Fort São Sebastião.
The Fortress of São Sebastião on the Island of
Mozambique is the oldest complete fort still
standing in sub-Saharan Africa. Construction
by the Portuguese began in 1558, and it took
about fifty years to complete.
billion, with a growth rate of 6.6% in
2015.
The country experienced an econom-
ic slowdown in 2016 as the commodi-
ties prices reduced, government debit
soared and foreign investment flows
dried up. High inflation and massive
depreciation of the local currency
affected economic activity and the
growth rate reduced to mere 3.8%
in 2016. Later in the year, it trans-
pired that the government indebt-
edness was significantly higher than
the reported figure as loans taken by
private companies in the total amount
of US$ 1.2 billion had been guaran-
teed by government. The sovereign
guarantees were not approved by the
Parliament nor were they disclosed
to IMF and other donor partners. As
a consequence, the foreign aid to
the country was cancelled whilst, as
the companies were unable to repay
the loans and the government did
not meet its obligations, the country’s
credit rating was affected.
This has affected the economy further
and an improvement is dependent on
the resumption of foreign aid and the
implementation of oil & gas projects in
the north.
Maineconomicsectors inMozambique
are agriculture, manufacturing, trans-
port, construction and energy. The
country’s main exports are aluminium,
prawns, cashew, cotton, sugar, citrus,
timber and electric power.
Relevant exports destinations are
