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Denmark-Mozambique – Partnership Policy 2012 - 2015

November 2012

Mozambique has achieved impressive economic results since the end of internal conflicts in 1992. Per capita national income has more than doubled and since 2003 the annual average growth has been close to 8 per cent, placing the country among the top three when it comes to economic growth in Africa. At the social level. Mozambique has, with considerable success, made huge investments and expanded the basic public infrastructures in health and education, based on a strategy to achieve the Millennium Development Goals. On the political side, the transition from a one-party system towards a multiparty regime, albeit still nascent, is a major achievement. Today, several political parties are active on the national scene, and civil society organisations are increasingly taking part in the public debate on major political and economic issues.

Still, the country is facing a number of significant challenges. The source of growth has mainly been major foreign investments in natural resource extraction, with limited impact on employment. In addition, small-scale agriculture development, which constitutes the most important source of income for the majority of the population, continues to face important challenges. Social and economic inequalities have increased and poverty has not been reduced in nearly 10 years.

Foreign direct investments to extract the natural resources of Mozambique have increased rapidly during the past decade, in particular from BRICS countries (Brazil, Russia, India, China and South Africa). It remains an outstanding challenge to establish appropriate management of these industries so as to ensure that they contribute to the country’s development in the form of taxes and duties.

Serious problems in health and education, particularly in rural areas, and the persistence of severe malnutrition, constitute major challenges to achieving the MDGs. The HIV/AIDS epidemic continues to have an adverse impact on the country’s development.

Politically, the predominance of the governing party and the incomplete separation of state and party leave rather limited space for democratic development. One major challenge is to pursue a more inclusive and broad-based economic growth strategy with strong employment effects that significantly reduces poverty and inequalities and at the same time promotes and enhances a pluralistic democratic development.

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Version 1.0. 19-11-2012
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