When Mozambique ended its devastating 15-year civil war in 1992, it was widely condemned as being a basket case. Today, the south-east African country is viewed as one of the continent’s brightest prospects. Although still very poor, with a per capita gross domestic product (GDP) of less than $700, its economy has risen almost 10-fold since fighting ended. Inflation has fallen from 16% to just 3% in the past three years.
Most of the growth has been down to Mozambique’s so-called mega projects, such as its Mozal aluminium smelter, and small amounts of gas extraction in the south. But recent discoveries of huge coal reserves in Tete province and offshore gas fields in the north have caused foreign direct investment to soar. GDP rose 7% last year and is forecast by the International Monetary Fund to increase 8% annually until 2019.
