Background: Mozambique is a growing economy in Southern Africa with GDP of $14.7 billion and a population of 28 million people. The economy has immense natural gas reserves and substantial oil reserves that are still being explored and the rapidly urbanizing population offers growth and a possibly new middle income population in the future. Mozambique has maintained a weak structural business environment and governance structures remain mostly dysfunctional. The table below reflects the main areas of trade by product percentage in Mozambique (source: UNCTAD):
Geo-Economic Structure: Mozambique has been one of the fastest growing economies in Africa with average GDP growth of 7% since 2006 but the current sovereign debt crisis triggered by undisclosed government debt levels and a series of resource project delays have resulted in the economy losing its ability to easily source funding from the IMF as well as the resultant default in bonds issued. The Rovuma basin gas projects are not expected to come on stream until late 2018. The gas projects are expected to result in government revenue in the region of US$2bn a year from the year 2021 which means the government will have to wait before it starts to realize gains from this natural resource.
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