Mozambique - Economic development

The government of Mozambique has abandoned its post-independence preference for a socialist organization of society, which it had tried to effect through the creation of cooperatives, state farms, and industries. In cooperation with the International Monetary Fund (IMF), Mozambique was reforming its economy and preparing for a post-civil war period of economic growth. Progress has been slow, however, as parastatals continue to control the telecommunications, electric power, transportation, and fuel sectors of the economy. Growth sectors include agriculture and related processing industries, transportation, and mining.

In 1999, Mozambique's eligible debts were reduced by 90% by the IMF, World Bank, the Paris Club, and other multilateral lending agencies under the Heavily Indebted Poor Countries (HIPC) initiative. The country also hoped for 100% debt relief from the United States and gained complete debt cancellation from the UK. Debt stood at $8.3 billion before 1999 and $5.7 billion after reforms. A variety of infrastructure development projects were underway in 1999, including a road and railway from Maputo to Johannesburg.

In 2001, the government forecast the economy would expand between 7–10% a year for the following five years, but such success depended upon foreign investment projects, economic reform, and the development of the agriculture, transportation, and tourism sectors. Over 1,200 state-owned enterprises were privatized, most of them small. In 2003, Mozambique was operating under a three-year $76 million Poverty Reduction and Growth Facility (PRGF) Arrangement with the IMF. Floods in 2000 and food shortages in 2002 curtailed economic development.

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User Contributions:

Anselmo Mutisse
this is goog article, reflects what in fact has occured during all those years. I agre with this and hope it came up with more information

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