page_title: Mozambique
section_title: Economy
hierarchical_section_title: Mozambique / Economy
caption_attribution_description: English: Export Trading Treemap. From MIT/Harvard Atlas of Economic Complexity
context_page_description: Mozambique, officially the Republic of Mozambique, is a country located in Southern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Africa to the southwest. The sovereign state is separated from the Comoros, Mayotte and Madagascar by the Mozambique Channel to the east. The capital and largest city of Mozambique is Maputo.
  Between the first and fifth centuries AD, Bantu-speaking peoples migrated to present-day Mozambique from farther north and west. Northern Mozambique lies within the monsoon trade winds of the Indian Ocean. Between the 7th and 11th centuries, a series of Swahili port towns developed here, which contributed to the development of a distinct Swahili culture and language. In the late medieval period, these towns were frequented by traders from Somalia, Ethiopia, Egypt, Arabia, Persia, and India.
  The voyage of Vasco da Gama in 1498 marked the arrival of the Portuguese, who began a gradual process of colonisation and settlement in 1505.
context_section_description: Mozambique is one of the poorest and most underdeveloped countries in the world, even though between 1994 and 2006 its average annual GDP growth was approximately 8%. The IMF classifies Mozambique as a Heavily Indebted Poor Country. In a 2006 survey, three-quarters of Mozambicans said that in the past five years their economic position had remained the same or become worse.
  Mozambique's official currency is the New Metical (as of March 2018, US$1 is roughly equivalent to 62 New Meticals), which replaced old Meticals at the rate of a thousand to one. The old currency was redeemable at the Bank of Mozambique until the end of 2012. The US$, South African rand, and recently the euro are also widely accepted and used in business transactions. The minimum legal salary is around US$60 per month. Mozambique is a member of the Southern African Development Community (SADC). The SADC free trade protocol is aimed at making the Southern African region more competitive by eliminating tariffs and other trade barriers. The World Bank in 2007 talked of Mozambique's 'blistering pace of economic growth'. A joint donor-government study in early 2007 said 'Mozambique is generally considered an aid success story.'
caption: A proportional representation of Mozambique's exports
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