Manufacturing is centered mostly in food processing and beverages (Food, beverages, and tobacco processing account for 62% of all manufacturing.) Industry is concentrated around the larger cities of Maputo, Matola, Beira, and Nampula. Mozambique's industrial sector is primarily centered on the processing of locally produced raw materials, such as sugar, cashews, tea, and wheat. Brewing and textile production emerged in the 1980s, along with cement, fertilizer, and agricultural implement manufacturing. Other industries make glass, soaps, oils, ceramics, paper, tires, railway equipment, radios, bicycles, and matches. Major investments in aluminum processing, steel production, mineral extraction, fertilizer, and sugar production have been planned.
Economic reforms of the early 1990s promoted private ownership of industry and brought about a significant decline in the number of parastatals; from 1990 to 2000, over 1,200 smaller businesses had been divested, and 37 large enterprises had been privatized. Only 11 large state-owned companies remained, including the national airline, telephone, electricity, insurance, oil and gas exploration, port and rail, airports, water supply, and fuel distribution companies. Government policy now supports the development of private enterprise fully.
The construction sector showed strong growth in the early 2000s, as projects to rebuild roads, bridges, schools, clinics, and other basic infrastructure were underway. There are considerable natural gas reserves, both onshore and offshore, but they have yet to be fully developed. Malawi, Zimbabwe, and Mozambique are planning to establish a 10,000 barrels per day joint fuel refinery in Mozambique, funded by Iran.