Mozambique is one of Africa’s success stories and is making economic progress, although the country is still dependent on foreign assistance. The economy was reformed by the elimination of subsidies and quantitative restrictions on imports, the reduction and simplification of import tariffs and the liberalization of crop marketing. A major privatization program involving the entire banking sector and state manufacturing companies is another active step in economic reform.

Mozambique has the natural resources to sustain the development of the agriculture, forestry, fishing, energy and tourism industries. Positioned in an strategic trading location, increased exports in these areas will increase the amount of foreign exchange brought into the country. The country’s ideal proximity to South Africa has resulted in a range of major projects that support continued high levels of growth. The country's major exports are agricultural products, coal and energy, aluminum, textiles, cement, glass, asbestos and tobacco.

Mozambique has an agriculturally based economy. Industrial development has been slow as a result of the civil war that destroyed transportation systems and other infrastructure. Mozambique has considerable mineral resources despite limited exploitation. The country’s oil and gas industry also has potential. Electricity is provided by the parastatal utility, Electricidade de Mozambique (EDM). The country exports electricity to South Africa from the Caborra Bassa hydro-electric facility in the Northern part of the country.


International Trade
 

Mozambique is a member of the World Trade Organization (WTO) and the Southern Africa Development Community (SADC), whose main export commodities include citrus fruits, coal, seafood, sugar, tea, coffee and timber. The main import commodities include mining equipment, pharmaceuticals, raw materials, spare parts, chemical products, consumer goods and crude oil.

Mozambique has bilateral trade agreements with Malawi and Zimbabwe, and signed an Economic Partnership Agreement (EPA) with the European Union.

Most Mozambican export products to the United States are granted zero tariff preferential treatment under the African Growth and Opportunity Act (AGOA) and under the Everything But Arms (EBA) Initiative, in the European market.

Imports into Mozambique are subject to payment of customs duty and value Added tax . For information about tariffs levied on imports please visit http://www.alfandegas.gov.mz/pauta_ad.htm.