This does not change Mozambique's status as a poor country. Since the end of the protracted civil war, the inflation has stabilised and is complemented by government reform initiatives that have seen more than 900 state enterprises privatised. Trade routes to South Africa have been opened and the country looks set to extending its exports to the south. One of the main problems facing the economy is the imbalance in trade, with imports exceeding exports. Mozambique often has to seek foreign aid to balance its budget and make up for the trade imbalance.
Economic prospects are however excellent and lie on sustained peace.
Investing in Mozambique Negative perceptions about doing business in Mozambique are beginning to change. It cannot be denied that the country is still struggling with the after effects of war but the government is also making the trading climate attractive to foreign companies. Mineral exploitation is currently limited by land mines from the recently ended war. Investment Incentives Basic trade incentives are contained in a privatisation campaign that includes the banking sector and state manufacturing companies. Bank exchange charges are extremely high.