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Mozambique extends along 2,750 km of the south-eastern coast of Africa , covering a total land area of nearly 800,000 km2. It borders South Africa , Swaziland and Zimbabwe to the south and west and Zambia, Malawi and Tanzania to the north. The total population of 19.1 million is growing at a rate of 1.8 per cent annually. Most of the country is occupied by low-lying terrain around the coast, with high plateaus in the northwest and mountains in the west. The climate ranges from tropical to subtropical. The country is vulnerable to natural disasters such as drought, floods and cyclones.

Since gaining its independence from Portugal in 1975, Mozambique has been devastated by famine, conflict and natural disasters. A brutal civil war fought in the country from 1977 to 1992 killed nearly a million Mozambicans, ruined the economy and left many rural areas littered with landmines. In 1992 a peace settlement brought the conflict to a close. Since then Mozambique has made good progress towards stability, rapid economic growth and improved human welfare. As the country began to move towards stability and economic growth, severe flooding in 2000 and 2001 destroyed much of its infrastructure and affected about a quarter of the population. Then, in 2002 drought devastated the central and southern parts of the country.

Despite the adversities the country has suffered, rates of absolute poverty have fallen considerably since 2002.

Agriculture

Agriculture is a keystone of the Mozambican economy. It accounts for one fifth of gross domestic product (GDP) and four fifths of exports, mainly of sugar, cotton, cashew nuts, timber and prawns. Mozambique has plentiful land resources and excellent potential for developing its agricultural production. About 46 per cent of the total land area is arable, and at present only 10 per cent of that land is cultivated. The central and northern areas have the highest agricultural potential, while the southern areas are drier, with poor soils, and are subject to flooding and droughts.

Since the peace settlement there has been a rapid increase in agricultural production and Mozambique has made good progress in returning to pre-war agricultural activity, at the same time reducing its dependence on food aid. Still, 99 per cent of the country's food production is generated by smallholders, most of whom continue to operate close to subsistence level, with low yields and low returns. The basic food crops they produce – maize, groundnuts, cassava, beans and rice – dominate overall crop production.

Commercial farms are gradually gaining importance. In the cotton and tobacco sectors larger companies generally contract out production to smallholder farmers. Smaller marketing and agro-processing businesses are also developing and opening up new market opportunities for small-scale farmers in a wider range of products.

Investments in infrastructure will help reinforce and expand the agricultural sector. Growth has been uneven across the regions, and because of poor road networks and market linkages the more fertile regions in the north cannot supply the less productive provinces in the south.

Economy

Since the peace settlement in 1992 the Mozambican economy has seen impressive, broad-based growth, with a seven per cent average growth rate from 1997 to 2006. Sound economic policies and reforms have helped stabilize the economy. They have favoured market-driven approaches and encouraged considerable foreign investment. At present, commerce and industry account for the largest share of GDP, while the agriculture sector ranks third in importance.

Although economic growth has begun to reduce deeply entrenched poverty, the majority of the population still lives below the poverty line, managing at subsistence level.

Source: IFAD