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Mozambique oils the wheels of economic growth

While the recent discovery of natural gas will certainly boost Mozambique's economy, the country's president, Armando Guebuza, recognises that it will not be enough to pull the country out of poverty and end its reliance on aid. To achieve this, it will be necessary to promote growth in other areas, such as agriculture and tourism, in order to create a more diverse and sustainable economy.
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Mozambique’s economy has been anything but sluggish in the past two decades. The Lusophone southern African country has, apart from a few years, grown by at least 6% annually in the period.

But it is starting from a low base. Its gross domestic product (GDP) in 2011 was $13bn – that of neighbouring South Africa, the biggest economy on the continent, was more than $400bn. And with a GDP per capita of only about $600, its 23 million people are among the poorest in the world. But given that it was considered an economic basket case in 1992, when it had just emerged from a devastating civil war, its subsequent performance and ability to attract large-scale foreign investment has impressed analysts.

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