efore the peace accord of October 1992, Mozambique¨s economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries in the world. Since then, Mozambique has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized.
ending are tax and much needed commercial code reform, as well as greater private sector involvement in the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates stable. Albeit from a small base, Mozambique achieved one of the highest growth rates in the world in 1997-98. Still, the country depends on foreign assistance to balance the budget and to pay for a trade imbalance in which imports outnumber exports by three to one.
he medium-term outlook for the country looks bright, as trade and transportation links to South Africa and the rest of the region are expected to improve and sizable foreign investments materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture (cotton, sugar), fishing, timber, and transportation services. Additional exports in these areas should bring in needed foreign exchange.
Balance Of Trade
Agriculture！products: cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice, tropical fruits;beef, poultry Exports: $295 million (f.o.b., 1998 est.) Exports！commodities: shrimp 40%, cashews, cotton, sugar, copra, citrus (1997) Exports！partners: Spain 17%, South Africa 16%, Portugal 12%, US 10%, Japan, Malawi, India, Zimbabwe (1996 est.) Imports: $965 million (c.i.f., 1998 est.) Imports！commodities: food, clothing, farm equipment, petroleum (1997) Imports！partners:South Africa 55%, Zimbabwe 7%, Saudi Arabia 5%, Portugal 4%, US, Japan, India (1996 est.)
efore the peace accord of October 1992, Mozambique¨s economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries in the world. Since then, Mozambique has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized. 
ending are tax and much needed commercial code reform, as well as greater private sector involvement in the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates stable. Albeit from a small base, Mozambique achieved one of the highest growth rates in the world in 1997-98. Still, the country depends on foreign assistance to balance the budget and to pay for a trade imbalance in which imports outnumber exports by three to one. 
he medium-term outlook for the country looks bright, as trade and transportation links to South Africa and the rest of the region are expected to improve and sizable foreign investments materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture (cotton, sugar), fishing, timber, and transportation services. Additional exports in these areas should bring in needed foreign exchange. 
Agriculture！products: cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, rice, tropical fruits; beef, poultry